UK-based investment crowdfunding platform Crowdcube shared it assisted 105 businesses and raised £35.9 million in funding for 2014. This represents a 246% increase compared to 2013 and means Crowdcube maintains the title of UK’s largest equity crowdfunding site. It is not just Crowdcube that has seen such huge growth.
In the last 3 years, the global crowdfunding economy has more than tripled to more than £3 billion
This confirms crowdfunding as a viable, and a more favourable way of launching your startup.
5 Reasons To Crowd Fund Your Start-Up
- Increased profile, if your startup business captures the imagination of the crowd-funding community, it is likely to have a similar impact on the public.
- Crowdfunding platforms interactive provide invaluable feedback that every startup requires.
- Crowdfunding enables you to engage with potential customers before your business is even launched.
- Crowdfunding platforms allow you to present your business to potential investors with prepared information and without having to present a live pitch. This is great if you are not a great public speaker.
- Crowdfunding platforms are accessible and easy to join. Many people struggle to find the right Business Angels to present their business to and spend lots of money to join Business Angel networks.
To be honest, there are few disadvantages in at least attempting to get your startup funded by a crowd-funding website. Additional time may be required to rewriting your business plan and preparing additional documents to make it crowdfunding friendly but any feedback you receive from potential investors and/or clients should be welcomed.