Crowdsource your funding while gaining market validation, feedback, engagement, and exposure. Peer-to-peer microlending: truly the fundraising method for the internet age.
Crowdsource your success
Take advantage of the fastest growing section of the investment market. One size doesn’t fit all: we can advise you on the platform, method, and message to achieve success.
What is Crowdfunding Finance?
Traditionally, one or a few lenders provide the finance required to launch a business or idea. With crowdfunding, potentially hundreds of investors buy into your idea, each contributing a small percentage. Whether used alone or as a complementary funding source to angel investment, venture capital or loans, crowdfunding can deliver success.
Who is suitable for Crowdfunding Finance?
Different types of crowdfunding finance will be suitable for different types of businesses. Equity and debt crowdfunding can benefit businesses from almost any industry, as it is the idea investors will be buying into. Entrepreneurs and creatives can benefit from reward crowdfunding. Charities and social enterprises can benefit from donation crowdfunding.
What is Reward Crowdfunding?
This is the type of crowdfunding made popular by platforms like Kickstarter and IndieGogo: investment comes from multiple sources, and is given in exchange for non-financial rewards. These typically scale with the level of investment, giving an increasing incentive for investors to consider chipping in.
This type of crowdfunding usually sees the majority of investment come from people without hefty financial assets, so fostering a sense of excitement and involvement is vital for success. We have worked with organisations and individuals to structure successful reward crowdfunding campaigns and would love to pass on this expertise.
Who is suitable for Reward Crowdfunding?
If you think your idea is exciting and engaging but want to avoid the higher-stakes of equity and debt crowdfunding, reward crowdfunding may be for you. The list of projects, businesses, and inventions who have raised their capital through reward crowdfunding campaigns is almost endless, so we definitely recommend getting in touch to discuss this option.
What is Debt Crowdfunding?
In this type of funding, also known as peer-to-peer (P2P) or loan-based crowdfunding, you receive funding in exchange for donations of capital. Multiple donors make small contributions which you repay, along with interest.
With crowdfunding now firmly established as part of the funding mainstream, there is an ever-growing pool of investors – both individual and institutional – looking for the next exciting project or business to invest in. Though competition can be tough, with the right pitch you can tap into this pool and crowdfund your success. And we can help.
Who is suitable for Debt Crowdfunding?
Established businesses looking for funding with clear-cut outcomes stand to benefit from debt crowdfunding, as a compelling pitch can be constructed with investors knowing exactly what they’re investing in. Opening a second branch is a perfect example.
The prospect of multiple funders can take the pressure off of individual pitches to angel investors and other funders. Retaining full equity is also an inviting proposition for businesses who opt for debt crowdfunding.
Equity Based Crowdfunding
What is Equity Based Crowdfunding?
This form of crowdfunding sees investors contribute a portion of the finance required to get your idea off the ground, in exchange for an agreed amount of equity in the business. Because of the small donations, each investor’s share of equity is small, meaning you do not have to sacrifice more than you are comfortable with.
As a form of democratised investment, equity crowdfunding has seen increasing popularity in recent years. There are multiple crowdfunding platforms where you can pitch for investment: working with Funding Guru lets you tap into our expertise in choosing the perfect platform, and crafting the perfect pitch.
Who is suitable for Equity Based Crowdfunding?
Crowdfunding as a whole is well suited to organisations who are at their early stages, or for established organisations who are looking for funding for a new, ring-fenced project.
Equity crowdfunding exposes your idea to investors who are usually more business savvy than donors in reward and donation crowdfunding projects, so you need to make sure your pitch reflects this.
What is Donation Crowdfunding?
In this type of crowdfunding, your idea or project is funded by the belief of well-wishers and supporters. They donate from a position of altruism, rather than from expectation of repayment, equity, or reward. If your idea is airtight this type of funding can help it to become a reality, with no financial obligation to your investors.
As with other types of crowdfunding, the funding for your project is provided by multiple backers, each donating a small amount. This means that crafting the perfect pitch is of paramount importance: you must communicate your idea in a way that excites and inspires potential donors, in order to convince them yours is a project worth being involved with.
Who is suitable for Donation Crowdfunding?
Given the altruistic nature of this funding type, it is best suited to charitable or non-profit ventures. Organisations and individuals in the third sector can benefit, as can social enterprises, and charities. Some projects we have seen succeed include charitable projects, community building restorations, fundraising for medical care, and more.
How Crowdfunding Finance can help your business?
We can advise with reward, debt, equity, or donation crowdfunding. A little bit on what each of these means below:
Reward crowdfunding: made popular through sites like Kickstarter, this funding solution sees lenders invest money in exchange for non-financial rewards, rather than financial repayment.
Debt crowdfunding: the required amount is borrowed from multiple lenders, rather than one. Useful for businesses who have been unable to secure loans from traditional channels. This entails peer-to-peer lending, mini-bonds and invoice financing.
Equity crowdfunding: you exchange equity for investment, with multiple lenders sharing an agreed portion of equity. You have control over how much equity is given away.
Donation crowdfunding: finance is secured by donation, rather than borrowing. Donors do not expect any repayment, financial or otherwise.
Crowdfunding has been used to fund all manner of projects and businesses.
The rise of reward crowdfunding platforms in recent years has seen almost everything receive funding, from inventions, films, and podcasts, to journeys, board games, and harebrained schemes. Whereas debt and equity crowdfunding are associated with more traditional business ventures.
The answer to this will depend on your specific needs, and one of our qualified account managers will be able to help you reach the answer.
Equity and debt crowdfunding are more traditionally associated with business ventures, where the business seeking funding wants to avoid, or has been unable to secure funding from traditional channels.
Third sector and charitable based projects may be able to benefit from donation crowdfunding.
We have worked with businesses in many industries to successfully secure crowdfunding.
Our experience and expertise will underpin your success: we know what is likely to attract would-be backers, from getting firm financials in place before you launch, to creating a compelling story with a clear exit strategy for investors.
We also know which crowdfunding platforms work best for which sectors, so we can advise you how to pitch your proposition in the right place.
Fund your future today. Our team will find the perfect Crowdfunding Finance for you. Move your business forward with Funding Guru.