By Lilach, We don’t have to tell you how difficult it can be to obtain business funding from a bank or other traditional lender, do we? In the current financial climate raising the necessary funds to expand your business or launch a new product can be incredibly tricky. So, what do you do if you are a young, innovative, creative company with an amazing product or service, an engaged and excited customer base and the desire to grow?
This is where crowdfunding is becoming a more and more popular choice for many businesses. There are a number of websites in the UK that offer the chance to fund your business project using the power of the people. The idea behind crowdfunding is that you sell small amounts of equity to a large number of investors, making it both affordable for investors and at the same time, a great way to ensure that you do not give away a large amount of your company to just one person. With a highly engaged customer base you can create a surge of online interest for this method of funding, many companies offer a reward for the investors that varies depending on the amount of investment given. This means that investors are getting something for their money at the same time as providing the funds for growth and new products within the company.
Crowdcube is one of the UKs leading crowdfunding websites that has raised over £13,000,000 in funds through its online investors. This platform is increasing in popularity as the UK’s entrepreneurs are now able to invest small amounts of money in a wide range of companies and really minimize the risk to them. An investor can choose how to spread their money and can pick and choose the business idea that really speaks to them, ensuring they are spending their money on subjects close to their heart.
One company that is harnessing the power of the crowd to fund their latest business expansion is GamesGRABR, an up and coming social network for gamers. Available on a number of platforms, GamesGRABR is a way to discover new games and meet other gamers who share your interests.
“We’ve been thrilled with the response so far to our Crowdcube project” said Tony Pearce, GamesGRABR’s CEO. “It is still early days but the benefit to us has been immense, our network of customers are enthusiastically spreading the word about investing in us and we are receiving lots of visitors to our website. We’re confident that we will raise the equity needed to enable us to follow our current plans for expansion.”
With investment opportunities available for as little as £10, there is no reason why anyone can’t become a part of GamesGRABR. Crowdcube offers investors the chance to speak to the business owners online and ask questions of them to get as much information as possible before investing. It is free to register and if you do choose to invest in one of their businesses it is a simple process to pay by Direct Debit.
Tax relief is available on most investments and Crowdcube provide some good advice on this tricky subject in order to protect its investors. If the pitch that you are investing in doesn’t raise the amount of equity it has requested then the money you have pledged will not be taken from your account. This ensures that only pitches where the business has raised the amount needed will go ahead.
One of the biggest benefits of crowdfunding is the customer engagement. Anyone who has invested in your project can share this information with their social media network by tweeting, emailing, blogging or sharing the link to your page through facebook. This makes it so easy for other people to find your link and check out what you have to offer.
So if you are an entrepreneurial type looking to support the UKs small businesses or a business with a solid plan who is looking for investment, why not check out the services available through Crowdcube, Banktothefuture, Crowdfunder, We Fund, or one of the other websites available, you never know – you might just be part of building the next Microsoft, Tesco or Facebook. More on http://www.socialable.co.uk/