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?
Reward crowdfunding became popular through platforms like Kickstarter and IndieGogo: Investment is given in exchange for non-financial rewards and comes from multiple sources. The rewards increase based on level of investment, giving more reason for investors to consider chipping in.
The majority of investment comes from people without large financial assets, so encompassing a sense of involvement and excitement 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 your business plan is engaging and exciting but you don’t want the high-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 goes on and on, so we definitely recommend getting in touch to discuss this option.
What is Debt Crowdfunding?
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.
Debt crowdfunding is now firmly established as a main way of funding, so there is an ever-growing pool of investors – both individual and institutional – looking for the next exciting project or business to invest in. Competition can be tough, but with the right pitch you can tap into this pool and crowdfund your success. And we can help.
Who is suitable for Debt Crowdfunding?
Businesses that are already established and who are looking for clear-cut outcomes can benefit from debt crowdfunding – a compelling pitch can be constructed with investors knowing exactly what they’re investing in. A perfect example would be opening a second branch.
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?
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, which means you do not have to sacrifice more than you are comfortable with.
Equity crowdfunding has seen increasing popularity in recent years, as a form of democratised investment. There are multiple crowdfunding platforms where you can pitch for investment: working with Funding Guru lets you use our expertise in choosing the perfect platform, we’ll help you with 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 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?
This type of funding relies on the support of well-wishers for your idea. They donate from a position of wanting to help and expect no repayment, equity or reward. Donation crowdfunding can help your idea to become a reality.
As with other types of crowdfunding, the funding for your project is provided by multiple backers, each donating a small amount. It is of paramount importance to craft the perfect pitch – you must communicate your idea in a way that inspires and excites 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.