Crowdfunding News and Views Round-up
Crowdfunding now 30bn Global Market – report
Crowdfunding is and continues to be one of the economic success stories of the last decade. There seems few projects, people, services or products that aren’t able to access crowdfunding in some way. In pioneering the combination of crowdfunding to property investment, we can recall when people were sceptical about using crowdfunding in this way. It seems hard to imagine now given how rapidly it’s been adopted in the last few years across all industries. A report this month by Consultancy.uk based on data from Massolution says crowdfunding platforms will distribute 30 billion euros globally this year; a 100% increase from last year. Meanwhile, the World Bank anticipates the global market to be worth $90-95 bn by 2025. While North America is the biggest market in the world; within Europe, the UK is leading the way in funds raised from crowdfunding.
Crowdfunding to Kill Off Conventional Finance Industry?
But what does this all mean? Is Crowdfunding the disruptive agent that will kill of conventional means of financing companies by banks and VCs and other assorted institutions? Apparently not, according to one CrowdfundBeat commentator. Co-existence and collaboration is what’s shaping up for the future. The commentator points to the growth of secondary markets for private company shares, allowing opportunities for the most traditional types of investors to access Crowdfunded companies and platforms whereby individual investors follow in the footsteps of accredited investors. It’s probably too early to call, although it will be interesting to see just how many traditional lenders have been supplanted by P2P lenders in the next ten years if levels of access, trust and reliability continue to grow.
How Soup Saves the Day
We like crowdfunding projects that help people. It makes us feel like perhaps we haven’t completely turned into people focused solely on personal gain as the be all and end all of our brief lives. And so it is we turn to the heart and stomach warming tale of Detroit Soup. Originating from a city deep in financial doo-doo, Detroit Soup is a dining concept that has already raised thousands for community projects. How it works is refreshingly simple. You pay a nominal entry for some tasty soup. You listen to pitches about projects to help the community. You eat the soup and vote on your favourite project. The winner keeps everyone’s admittance fee. Thirty groups in the UK have already sprouted into live with doubtlessly more to come. A commendable crowdfunding idea, to be sure.
Beer Company Claims 10m Crowdfunding Record
Craft beer company, BrewDog, this month claimed to have made a new world record for equity crowdfunding companies.
The Scottish-based brewery have to date raised 10m pounds which they claim is a world record for equity crowdfunding as part of their ‘Equity for Punks Expansion’, with a target of 25m by the time the equity offer ends in April next year.
Since its inception in 2007, the company has grown to be one of the largest independent brewers in the UK, and is currently embarked on spreading their craft beer gospel to countries around the globe.
Sacking the Boss by Crowdfunding
You can pretty much try to crowdfund anything these days. That’s part of the appeal. Although the attempt by a bunch of Liverpool fans to raise 7m to get their then manager Brendan Rogers sacked seemed rather curious. Firstly, why bother? He did a cracking job of getting himself sacked by failing to win sufficient games coupled to terminal fatigue at the same old excuses being served up. And, secondly, why 7m? Find out for yourself at:-
The Big Crowdfunding Story of the Year….So far
There is so much merit in crowdfunding, so much to commend it that it’s hard not to get a little carried away. The way the collective wisdom of crowds can hold sway over the few. The abundant possibilities it has created to make the world a better place in so many ways. Like the ability to solve problems by pitching in together, such as when people crowd checked images in the Gulf of Thailand for the missing Malaysian jetliner; or, the way people can now access things collectively that they could never have accessed alone. And so we come to the most shared crowdfunding story of 2015 in the UK on social media, a story which has clearly hit a crowdfunding chord. It centres on a group of architects who have launched a crowdfunding campaign to raise 2 billion pounds. Marvellous. To build new garden cities with cheap housing to end the shortage? Err, no. OK, it must be to build carbuncle free new towns to rekindle our sense of civic pride? Err, nope. Right, then, it’s got to be something to ease traffic congestion, that’s a huge problem, maybe they’re going to build subterranean cycle park zones like those nifty ones showcased in Japan? Err, thrice no. So what cunning plan have they cooked up that requires two billion pounds of crowdfunded cash? They want to build a life-sized replica of the city Minas Tirith from Tolkien’s Lord of the Rings in Britain. Of course, they do. Silly me. For people who like rubberneckin’ crowdfunded car crashes, read on: –http://www.telegraph.co.uk/film/lord-of-the-rings/minas-tirit-crowdfund/