An overview of UK Crowdfunding

Alan Scrase
21st March 2013

1
Context
• SETsquared Partnership - the Enterprise collaboration of the
Universities of Bath, Bristol, Exeter, Southampton ...
UK has a wealth of entrepreneurial
talent

• UK has lots of great ideas
• Need to cultivate ideas into the next
Google/Twi...
The way it is…

• Grants complicated and time consuming
• Debt finance hard to come by
• What if a large number of people ...
Crowdfunding
• Crowdfunding is an approach to raising the capital required for a
new project or enterprise by appealing to...
Crowdfunding Types
Kickstarter Project Crowdfunding
Kickstarter Project Crowdfunding
Kickstarter Project Crowdfunding
FundingCircle Loan Crowdfunding
FundingCircle Loan Crowdfunding
FundingCircle Loan Crowdfunding

http://www.crowdcube.com/pg/how-it-works-4
The stages of equity crowdfunding
Crowdcube Equity Crowdfunding
Crowdcube Equity Crowdfunding
Crowdcube Equity Crowdfunding

https://www.fundingcircle.com/how-it-works#how-it-works-video
Equity crowdfunding benefits
Crowdcube to date

Success so far…
Deals successfully funded

£18 million
£2,400
av. investment

£187,000

>59.7k

Average...
Some challenges
• Regulation
• Process challenges
• Post-investment
• Getting the best participants
• Potential returns
Regulation
• Important to ensure investors are protected
• JOBs Act is one option but not necessarily the best one
• EU lo...
Post-Investment
• Managing input from many investors

• Incentivising investors with small stakes
• Protecting investors p...
UK Crowdfunders
Donation crowdfunding
www.banktothefuture.com
www.buzzbnk.com
www.crowdbnk.com
www.peoplefund.it
www.gambi...
Alan Scrase
SETsquared at the University of Southampton
Incubation Centre Manager
a.scrase@soton.ac.uk
07825 761 652
Upcoming SlideShare
Loading in …5
×

Executive Association Solent Intro to Crowd Funding 14 Feb 2014

322 views

Published on

A short after dinner Introduction to the three main types of Crowd Funding in the UK given by Alan Scrase Incubation Centre Manager, SETsquared at University of Southampton

Published in: Business
  • Be the first to comment

  • Be the first to like this

Executive Association Solent Intro to Crowd Funding 14 Feb 2014

  1. 1. An overview of UK Crowdfunding Alan Scrase 21st March 2013 1
  2. 2. Context • SETsquared Partnership - the Enterprise collaboration of the Universities of Bath, Bristol, Exeter, Southampton and Surrey • Collectively supports the growth and success of new business opportunities through spin-outs (20%), spin-ins (80%), licensing, acceleration and incubation • Running 10 years • Raised over £1bn investment • 1,000 companies created with 90% survival rate
  3. 3. UK has a wealth of entrepreneurial talent • UK has lots of great ideas • Need to cultivate ideas into the next Google/Twitter/GroupOn • Often stifled by access to Money Google says searches for "business plan UK" have increased by 60% over the past year and searches for "small business loan" are up by 34%
  4. 4. The way it is… • Grants complicated and time consuming • Debt finance hard to come by • What if a large number of people lent a smaller amount? • Venture capital difficult to find for smaller requirements • Business angels – limited investments • Typically a syndicate each investing £10k - £100k • Is there a way to have 5000 angels each investing £10? • What if anyone could become involved?
  5. 5. Crowdfunding • Crowdfunding is an approach to raising the capital required for a new project or enterprise by appealing to large numbers of ordinary people for small amounts • Possible via the web and driven through Social Media • Crowdfunding examples • Funding Circle.com – 68k UK based lenders, > £220m lent, <1.4% bad debt • Kickstarter.com – >132,000 launched projects, > $977m pledged to-date, 44% success rate
  6. 6. Crowdfunding Types
  7. 7. Kickstarter Project Crowdfunding
  8. 8. Kickstarter Project Crowdfunding
  9. 9. Kickstarter Project Crowdfunding
  10. 10. FundingCircle Loan Crowdfunding
  11. 11. FundingCircle Loan Crowdfunding
  12. 12. FundingCircle Loan Crowdfunding http://www.crowdcube.com/pg/how-it-works-4
  13. 13. The stages of equity crowdfunding
  14. 14. Crowdcube Equity Crowdfunding
  15. 15. Crowdcube Equity Crowdfunding
  16. 16. Crowdcube Equity Crowdfunding https://www.fundingcircle.com/how-it-works#how-it-works-video
  17. 17. Equity crowdfunding benefits
  18. 18. Crowdcube to date Success so far… Deals successfully funded £18 million £2,400 av. investment £187,000 >59.7k Average amount raised funded so far… 95 members FCA Authorised £1.9 million biggest deal
  19. 19. Some challenges • Regulation • Process challenges • Post-investment • Getting the best participants • Potential returns
  20. 20. Regulation • Important to ensure investors are protected • JOBs Act is one option but not necessarily the best one • EU looking at options • UK FCA have started approving already • Need for more transparency and consistency across Europe
  21. 21. Post-Investment • Managing input from many investors • Incentivising investors with small stakes • Protecting investors post-investment • Voting rights • Exploring liquidity for investors • Ensuring businesses remain attractive to follow-on funders
  22. 22. UK Crowdfunders Donation crowdfunding www.banktothefuture.com www.buzzbnk.com www.crowdbnk.com www.peoplefund.it www.gambitious.com Debt crowdfunding www.abundancegeneration.com www.banktothefuture.com www.buzzbnk.com www.trillionfund.com www.fundingcircle.com Equity crowdfunding www.banktothefuture.com www.crowdbnk.com www.crowdcube.com www.gambitious.com www.microgenius.org.uk www.crowdmission.com www.seedrs.com
  23. 23. Alan Scrase SETsquared at the University of Southampton Incubation Centre Manager a.scrase@soton.ac.uk 07825 761 652

×