2. IRISH LOAN FUND
‘A credit union is a member-owned financial cooperative,
democratically controlled by its members, and operated for the
purpose of promoting thrift, providing credit at competitive
rates, and providing other financial services to its members.’
Modern credit unions are attributed to Franz Hermann Shulze-
Delitzsch, who established the first one in 1852 in Eilenburg.
Started by Jonathan Swift in the 1700s, the fund provided loans
to low-income families in rural areas who had no experience
with credit and held little collateral but could still be considered
creditworthy. By the 1800s, more than 300 programs
throughout Ireland and at it's peak 20% of all households used
3. THE GRAMEEN BANK
British Rock band Marillion raised $60,000 from fans to finance
their US tour.
They called it a tour fund and without meaning to created the
blueprint for future sites, included ArtistShare (which launched
in 2003) to follow.
What started with $27 loaned to 42 women by Dr Mohammad
Yunus as part of a research project to give banking
opportunities to low-income people evolved in just five years to
a programme with more than 30,000 members. The programme
transformed into Grameen Bank and has now lent to more than
eight million borrowers.
4. JUST GIVING
Kiva.org launched and became the first microlending website to
connect lenders with low-income/underserved entrepreneurs
As of 2013 Kiva had facilitated more than one million loans at
value in excess of $500 million lent.
Donate? No, I’m JustGiving. British company JustGiving was
founded by Zarine Kharas and Anne-Marie Huby to provide
online tools and processing services to enable the collection of
Many copycats would follow soon after though JustGiving would
remain the largest. It claims to have helped individuals and
companies raise more than £1 billion for charity.
The first recorded use of the term ‘Crowdfunding’ comes from
Michael Sullivan in fundavlog in August 2006.
Prosper.com launched the first peer-to-peer lending site in the
US. This was the first time this type of loan existed outside of
developing economies. Prosper formally registered with the
SEC in 2009.
Lending Club launched the second peer-to-peer lending site in
the US Lending Club is significant for raising $125 million in
2013 from the heavyweights including Google.
Lending Club registered with the SEC in 2008.
Lending Club IPO-ed on Nasdaq on 11 December 2014, the
stock ticker symbol is LC.
Kickstarter launched in Brooklyn with the mission of helping
bring creative projects to life.
Time named Kickstarter as one of the best inventions of 2010.
A little more than a year later TikTok+LunaTik Multi-Touch
Watch Kits raise $942,578 of a $15,000 goal in December with
13,512 ‘backers’; both were recordbreaking at the time.
Indiegogo launched at the Sundance Film Festival and became
one of the first recognised rewards-based crowdfunding sites.
While the initial focus of Indiegogo was film, though this
eventually changed to ‘any type’ of idea.
GrowVC launched the first effort into what would eventually to
be known as equity crowdfunding.
Soon after CrowdCube, Seedrs launched their own equity
crowdfunding offer, which brought investors together under a
Where there’s a crowd there’s a way, and in 2011 Crowdcube
launched the world’s first business finance crowdfunding
platform and firmly established equity crowdfunding as a
SyndicateRoom disrupts the equity crowdfunding party by
being the first equity crowdfunding platform in the UK to allow
the crowd to co-invest in professionally led opportunities.
23. Types of crowdfunding
Type Donation Debt Equity
What is it
for a reward /
Fund part of / all
of a loan for a
Invest money for
a share in the
initial amount at
term of loan
time of exit
Community / art
projects / charity
Kickstarter is forecasting to raise over $500m per year
By 2018 Crowdfunding will overtake VC (this includes equity and rewards)