An Introduction to UK Crowdfunding and Start-Up Financing
Start Up Funding - New Product Idea? How to raise finance
There are a number of avenues to raise funds for a new idea. We have presented a few of the most popular methods (such as crowdfunding in the UK) in our guide, but it is not an exhaustive list. The aim is to give you vital information on how to increase your chances of successfully acquiring financing, whether you are using on-line methods such as Crowdfunding or a more traditional approach like pitching your product to industry.
Do you want to get started, book a consultation with one of our Innovation Coach.
Starting a crowdfunding pitch or got an idea that needs developing for a crowdfunding pitch?
Request one of our information packs to find out more about patenting and protecting your invention prior to launching a crowdfunding campaign. Also included are idea submissions forms and a confidentiality agreement to get a free idea review from Innovate on the next best steps for your idea. Request a Free Info Pack Here
Crowdfunding is "the practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.”
There are three main models of crowdfunding available in the U.K.:
- Reward Based Crowdfunding
- Equity Based Crowdfunding
- Bank Loan
Innovate can provide you with the crowd source funding necessities to create an effective business crowdfunding campaign:
- Professional product or idea visuals that tell your story.
- 3D model and consideration of manufacturing constraints.
- A prototype
- Designing rewards that matter and stand out.
- A video and description that explains the story behind your project.
- Patent Protection of your project
Some of the Equity Crowdfunding websites
Project creators set a funding goal and deadline. If people like a project, they can pledge money to make it happen. Funding on Kickstarter is all-or-nothing — projects must reach their funding goals to receive any money. All-or-nothing funding might seem scary, but it’s amazingly effective in creating momentum and rallying people around an idea. To date, an impressive 44% of projects have reached their funding goals.
Indiegogo is a crowdfunding platform where people who want to raise money can create fundraising campaigns to tell their story and get the word out. Indiegogo is also a place to discover what people all over the world are passionate about and how to get involved.
Bloom/Crowdfund me has been at the forefront of crowdfunding since 2010. Founder Amanda Boyle spotted a gap in support for startups and early stage businesses, as well as community, culture and creative projects.
Crowdfunder helps fund a number of projects, big or small, that aim to change the world a little or a lot. Since our launch in 2010, the Crowdfunder network has raised over £500,000 for great ideas, people and projects.