Crowdfunding is the buzz word for alternative business finance and plenty of investors are looking for a piece of the action.
But which are the best platforms for entrepreneurs to make pitches – and the best places for investors to look for deals?
Most of the UK crowdfunding platforms have three funding options –
- Rewards – where companies offer discounts, freebies and other recognition for donations
- Equity stakes – companies offering shares in exchange for cash
- Peer-to-peer (P2P) lending – investors pool funds to lend cash to businesses
Top 10 platforms
Some crowdfunding sites operate just one model and some all three, so check the pitch to work out the terms offered for your money.
Kickstarter
Kickstarter is one of the earliest entrants to the crowdfunding world and operates mainly on a donations model – mainly because the home site in the US was legally banned from offering equity stake deals. This law has been lifted but Kickstarter has announced the model is unlikely to change
Crowdcube
An equity based funding platform and one of the largest in the UK
Indiegogo
The world’s largest crowdfunding site that offers a mix of rewards, equity and peer-to-peer deals
LendInvest
Peer-to-peer lending is the speciality of this portal
Funding Circle
Funding Circle specialises in peer-to-peer lending to businesses and currently has around 8,000 live deals internationally
Seedrs
Seedrs looks at offering cash to start-ups and many of the pitches are closely linked to approved companies offering enhanced tax reliefs under the Seed Enterprise Investment Scheme (SEIS)
Trillion Fund
Trillion has a twist for crowdfunders, taking an ethical and socially aware stance, raising money for many community projects
Unbound
Unbound is a crowdfunding site that allows would-be readers and backers to pre-order books and other creative works.
Zopa
A peer-to-peer lending platform offering cash to business and individuals
Angel List
A platform that follows BBC TV’s Dragons Den style investments where business investors take an equity stake or convertible loans to help start-up businesses.
A comprehensive crowdfunding platform director can be found at crowdsourcing.org