The Financial Conduct Authority (FCA), who are the regulatory body in the UK, define Crowdfunding as this:
“Crowdfunding is a way which people, organisations and businesses (including business start-ups) can raise money through online portals (Crowdfunding platforms) to finance or re-finance their activities and enterprises.”
Crowdfunding is a fast growing way of injecting finance into projects
and start-ups that are looking for financial support for their activities. The growing popularity of emerging Crowdfunding platforms indicate that this industry is set for tremendous growth. Crowdfunding can be used for both start-up as well as established companies to implement their innovative and unique ideas if they offer benefits to a large enough ‘crowd’. This type of funding is a very strong alternative to the conventional ways of financing through banks and venture capitalists. Whilst Crowdfunding is still considered to be in its infancy, it is developing into a strong offering. It is likely to become one of the most viable and easiest routes to funding, for even unusual projects that may otherwise struggle to raise finance.
