The Future of Crowd-funding in the UK – 2013 Report

Crowd funding is an increasingly popular way of financing projects, business ideas, charity and loans through small contributions from a large number of individuals.

The collaborative power of crowd funding can stimulate the economy, democratise financial systems, create new and better jobs, foster innovation and entrepreneurship, strengthen civil society, and help local communities flourish.

Crowd funding is a way of raising funds via specialist online platforms in a climate where raising funds for projects, loans and business ideas through business angels or traditional lending from banks is hard. There are concerns on regulation, scams and fraud that need to be watched.

There is confusion on the differences between equity, debt, donation, reward and revenue based models. The UK is the most advanced country in the world for equity crowd funding.

The potential for use with or instead of traditional lending is huge and is a real new alternative to banks and venture capitalists as their traditional role as gatekeepers to finance is undermined.

This independent report – ‘The Future of Crowd-funding in the UK’ from a writer/ researcher/ economist specializing in reporting on new financial ideas, explains UK crowd funding in ways any intelligent non-specialist can understand.

There are five types of crowd funding:

– Straight donation with no rewards.
– Funding for reward, where the backer gets something in return for their commitment of funds, ranging from a thank you listing to free or discounted product.
– Funding for equity, where the backer gets a share of a company in some way
– Debt funding – better known as peer to peer and peer to business lending, where a loan is provided by multiple small lenders.
– Revenue funding where people share revenue

Key Topics Covered:

1. Overview
2. How it works
3. Background
4. Market size
5. Why it has risen
6. Research
7. Regulation
8. UK government initiatives
9. Trade bodies
10. Businesses and other users
11. Investors and donators
12. Other lenders
13. Problems
14. The future
15. Platforms
16. Profiles

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SOURCE: PR Newswire