What is crowdfunding, how does it work and is it right for your business or project?
- Crowdfunding is a way of financing projects and businesses through small contributions from a large number of backers, rather than large amounts from one or a few sources.
- More than $2.7 billion was raised through crowdfunding globally in 2012.
- Campaigns can be based around donations, rewards, loans or equity investments.
Crowdfunding is booming. In 2012, more than $2.7 billion was raised through crowdfunding worldwide – helping to fund more than one million new projects.
The UK is also catching the crowdfunding wave, with £200 million invested through crowdfunding in 2012, and significant potential for further growth. But how does crowdfunding actually work, and is it right for you?
This short practical guide aims to gives a quick overview of crowdfunding, the different versions of the model and how they work. Throughout the guide, you’ll also find top tips on how to increase your chances of running a successful crowdfunding campaign.
Peter Baeck and Liam Collins