Crowdfunding start-up success stories: UK’s top 10 revealed
With crowdfunding the buzzword for entrepreneurs looking to raise business finance, Startups looks at the most impressive crowdfunding pitches to date…
Crowdfunding has been trending in business circles for some time now; popular among start-ups, high-profile investors, established entrepreneurs, local councils and even musical productions. Everyone’s at it. And by ‘it’ we mean turning to the public; ‘crowd investors’, to raise finance as an alternative to traditional bank loans and angel finance.
There’s now a plethora of equity and reward-based crowdfunding platforms operating in the UK with Seedrs and Crowdcube leading the way. Many of these sites have branched out to target niche markets such as Unbound, a “crowdfunding publishing house” for readers to back authors, kriticalmass for start-ups that “power good” and even a platform dedicated to mumpreneurs; Mums Mean Business.
Some entrepreneurs have eschewed crowdfunding platforms and chosen to launch their own crowd investment schemes, raising capital directly from investors through their websites. Scottish craft brewery BrewDog is one such example, having secured a staggering £4.25m earlier this year through its ‘Equity for Punks’ crowdfunding scheme.
This growing trend towards crowdfunding has not gone unnoticed and city watchdog the Financial Conduct Authority (FCA) recently unveiled its long-awaited regulations of the industry. Met with a mixed response from alternative funding providers, the new rules require “inexperienced” investors to certify that they will only invest a maximum 10% of their portfolio into crowdfunding campaigns.
Despite the new “10% rule”, crowdfunding continues to gain real traction in financing early-stage businesses which is why Startups’ has compiled an index of the top 10 UK crowdfunding rounds to date.
Taking funding amounts and record achievements into account, our top 10 list demonstrates the clear potential for businesses looking to secure capital through crowdfunding sites; citing major deals in email systems, mobile apps, and even housing projects.
Click the button below to view the list of the UK’s biggest crowdfunding success stories and find out whether turning to the ‘crowd’ might just be the right funding option for you…