Crowdfunding is kick-starting business – but will regulation kill the golden goose?

Crowdfunding is kick-starting business – but will regulation kill the golden goose?

Good ideas are plentiful in life but unfortunately, much of the time, capital is in short supply which means many of those good ideas never make it on to paper, let alone a factory floor.

Often all that has stood between an idea and reality has been an unimpressed bank manager who doesn’t see the potential in what you have to offer but the world has moved on. In the spirit of social media and creating your own hype, crowdfunding has become an ever more popular route for start-ups and growing companies.

Crowdfunding is a unique way to raise finance; you put your idea online through a crowdfunding platform with the aim of raising a specific amount and those who see the potential in it can take a punt on your business and put in some capital.

This collective pooling of resources is great for a number of reasons as it means you can retain control of your business although you may be offering an equity stake in the business for those who invest.

While raising cash is the obvious aim of crowdfunding it is not the only benefit. By putting your ideas out there and having investors to answer to your business plan is put into sharp relief and any goals you set, you become accountable for.

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