Crowdfunder turns great ideas into reality by connecting people, projects and partners. Crowdfunder has raised millions for businesses, social enterprise, charities and individuals – and unlocked millions more through match funding and support.

Crowdfunder investors include Nesta, Creative England, Plymouth University and Crowdcube (March 2016).

There are three ways to raise funds through Crowdfunding:

Rewards

You could be looking at raising a little of a lot depending on your project shape and size. You could be looking to:

  • Raise funds
  • Test and validate your idea
  • Pre-sell your products
  • Build loyalty with new customers
  • Market your ideas

Community shares

This option enables a local organisation such as a pub, shop or organisation raise funds by offering people in the community a chance to buy community shares in the organisation. This option lends itself well to projects that will have a social impact in the local area. Each investor gets a vote and has the opportunity to have a hands on approach supporting the project with their expertise and experience.

Equity

There are two choices within this crowdfunding option:

  1. A business can offer a bit of its company (equity) in return for pledges of money, meaning everyone who invests becomes a shareholder giving them part ownership of the business dependant on the level of investment
  2. Mini-bonds allow more established businesses to offer regular interest repayments (typically 6-8% pa) in return for investment into the business with a lump sum payment at the end of the term