Crowdfunding for businesses | 2019 guide

Is crowdfunding the way to go for your business? What are the pros and cons? We explore these and many other questions in this concise guide to crowdfunding for business.

By Martin Brackstone on 25/09/2019

With crowdfunding, lots of small things add up to something large

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How would you like to raise £1 million in 96 seconds? This was the breath-taking result when fintech start-up Monzo crashed equity crowdfunding platform Crowdcube in 2016. And we've seen no sign of things slowing down since.

In less than a decade, crowdfunding has gone from being a novel way to find financial backing for a pipe dream to first-choice source of funding for hordes of entrepreneurs, non-profits and growth-bound businesses.

Is crowdfunding the way to go for your business? Which type could work best for you? What are the pros and cons? How do you choose the best platform? We explore these and many other questions in this concise guide to crowdfunding for business.

What's covered in this guide?

What is crowdfunding?

Crowdfunding is a way for people who need money for a business, social or personal venture to connect with thousands or even millions of people willing to contribute financially.

Crowdfunding bypasses traditional sources of finance, such as banks and venture capitalists. Instead, by seeking contributions openly through an online platform, it is the 'crowd' of individuals, groups and investors who fund the venture.

Borrow £1,000 - £200,000 for cash flow, stock or investments. Fast and fair decisions.

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Borrow £1,000 - £200,000 for cash flow, stock or investments. Fast and fair decisions.

Get approved for free

Martin Brackstone is a senior editor and copywriter who has years of experience writing about a broad range of topics, including business finance, pensions, home and motor insurance, premium bank accounts, reward credit cards and personal loans.