Crowdfunding Sees £47m Invested in First Quarter of 2017

A report by Beauhurst’s Crowdfunding Index has revealed that £47m was invested between the 1st January and 31st March of 2017.

The £47m was invested over 82 deals, with crowdfunding sites Crowdcube (29) and Seedrs (35) responsible for the majority. While the former had less investment deals, they had £23m funding invested, compared to Seedrs’ £9.3m.

The biggest crowdfunding deal that took place during the first quarter of 2017 took place on VentureFounders, where Lightpoint Medical raised £3.3m. This is followed by a £2.5m deal for Monzo, a £2.4m deal for Cocoon and a £2.1m deal for Gripit Fixings, all of which were Crowdcube campaigns.

A peak of 100 crowdfunding deals was reached in the third quarter of 2015 (since 2011). During the last year’s referendum there was a noticeable drop, which since then has steadily risen.

How do I crowdfund my business?

The number of start ups has steadily been on the rise for some years. In 2014 there were 581,000 start ups launched in the UK – an increase from 440,600 in 2011. As the number of start ups grow, so does the need for investors, which is where crowdfunding comes in.

Crowdfunding a start up is a popular option as entrepreneurs in the UK seek to create directly for the consumer. These investors put faith (and money) in a viable business plan, which the creator can then use to hit their target audience and find a market for their product.

Crowdfunding works best for projects that are unique, creative and that have an interesting story to tell. If your idea fits the bill, there’s no reason you can’t give it a go.

If you have an interesting origin story or a creative invention that will grab the attention of investors, try using video to demonstrate your mission and story. This is a good way to pitch your business to investors online, especially if your product requires a demonstration.

Once you’ve created your pitch, create an account on a crowdfunding webpage (see those listed above) and share it through your website and social media. Now you simply need to wait for the right investors to watch your pitch!

Have you raised funds for a business or project through crowdfunding? Or have you helped fund a project? Share your crowdfunding experiences in the comment section below!

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