Insight

Everything businesses need to know about crowdfunding

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Introduction to crowdfunding

This Crowdfunding guide aims to help micro-SMEs make an informed decision about whether or not it’s the right source of finance for them, how to maximise success and provides direction to resources to help make this work.

In 2013, 95% of UK businesses employed less than 10 people. That’s 4.7 million micro-businesses vying for space to grow in a persistently tough economic environment.

Until the banks release the tight grip on their reserves, micro-SMEs sometimes have to seek alternative forms of funding to overdrafts and bank loans. Crowdfunding is becoming more popular for many.

Crowdfunding is a way of raising money from lots of people via a website. Businesses with a good idea pitch their project online and offer rewards or financial returns for people that pledge or invest money.

However there’s a lot more to crowdfunding than just raising funds. It’s a great way of building a community of followers, engaging with a target audience and establishing long term relationships with those who will support the business into its future.

Many of us have perhaps heard about crowdfunding for business. But start-ups and micro-SMEs that are considering using it to raise funds need to fully understand it before diving in. That way they are more likely to reap the rewards they’re after.

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
  • 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 (you are here)
  • How to make crowdfunding work for your business
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