Posted on: 19 August 2014
Crowdfunding is in the news a lot at the moment. But making the headlines doesn’t necessarily mean that everyone’s doing it.
According to The Crowdfunding Centre, since the beginning of 2014 businesses have been raising £1,700 per hour1 through crowdfunding. Indeed, the alternative finance market as a whole is growing at an astonishing rate in the UK, with it now predicted to be worth over £1.5bn2.
Some businesses are basing their entire growth on crowdfunding. Global records of $40m have been raised through US crowdfunding websites like Kickstarter and Indiegogo. The craze is embedded in the UK too, with the Bristol Park and Slide and the Arran Brewery both hitting the headlines this year because of the support they have gathered through crowdfunding.
However, alternative finance, of which crowdfunding is an example, is still a relatively small market compared to traditional bank lending (which totalled some £7bn3 for SMEs in Q3 2013 alone). In fact, only 5,000 UK SMEs raised funding through the alternative finance market between 2011 and 20134. This is merely a drop in the ocean when you think that there are 4.7 million micro-SMEs in the UK as a whole.
View our full Crowdfunding guide or browse through the content below to learn more.
- Everything small business owners need to know about crowdfunding
- What is crowdfunding?
- Size of the crowdfunding market (you are here)
- How is crowdfunding different to other ways of accessing funds?
- Advantages and disadvantages of crowdfunding
- What are crowdfunding platforms?
- What are the risks of crowdfunding?
- 5 signs you're not ready for crowdfunding
- How to make crowdfunding work for your business
Download the full crowdfunding guide here (click image below)
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