Crowdfunding and equity are alternative sources of financing for businesses that can help validate ideas, gain funding, and build advocates. Crowdfunding platforms like Kickstarter, Indiegogo, and Seedrs allow businesses to raise money from multiple small donors in exchange for incentives or equity. A successful example is the Pebble smartwatch campaign that raised over $100k in 2 hours. Equity involves venture capitalists investing in companies in exchange for ownership stakes and is best for high-growth businesses with exit plans. Debt financing from banks, angels, and venture debt is another option but requires extensive business plans. TCI Pathway can assist with business plans and connecting with various sources of funding.

1. Access To Finance For Business
Owners
April 2016

2. Where is the money?
• It is a combination of the forms of funding:
• Debt
• Crowdfunding / Peer to Peer
• Equity

3. Debt
• Debt can be accessed from many avenues including angels, venture
capitalists, banks, national schemes.
• Banks provide interest based but need extensive business plan
checks to access
• VCs can fund with interest based Debt and less or no equity
• They can have more lenient repayment
terms if the business plan shows
succession
• The above relies on a Business Plan to
attract any lender
– TCI Pathway can assist with Business Planning
making it easier for you to access funding

4. Crowdfunding
• Businesses use crowdfunding to raise money from multiple
sources typically through an online platform.
• Most are incentive based but some can be equity based
• No limits to how much can be raised but relies upon
effective campaigning
• Some examples
Kickstarter www.kickstarter.com
Indiegogo www.indiegogo.com
Seedrs www.seedrs.com

5. Benefits
• Validation - Crowdfunding validates your idea and gives you confidence, it proves that people like
your idea and will pay or contribute to make it happen.
• Funding - You can unlock other funding for charities and community groups this maybe grants, for
businesses it could be Debt, investors or a pre-cursor to an equity crowdfunding campaign
• Advocates - Crowdfunding is for life, not just for fundraising. The people who support you and your
great idea become a part of your journey and make incredible ambassadors for your project in the
future.
• Marketing - When you create and launch your project you have to really think about how you are
going to market your idea. So Crowdfunders learn vital skills when fundraising - they learn how to
become superstar marketeers too!
• Get valuable market research and feedback
• Initial traction through pre-orders
• Lots of PR and marketing
• Create new partnerships
• Potentially get new customers
• Build brand through loyalty
• Build investor confidence

6. Success Stories
Target£600,000
£681,230raised
Equityonoffer20.92%
Investors543
Daysleft9
Securing backing for a new product
Pebble: E-Paper Watch for iPhone and Android
$100k in 2 hours
Hi Kickstarter,
We're absolutely blown away by your support. We
have received hundreds of messages, so it will take
us a little while to respond to them.
Thanks so much!
Eric and the Pebble team
Equity
Renovagen has developed and patented a portable
solar energy system up to 10x more powerful than
existing solutions. The system can be delivered via air
pallets or standard shipping containers and can power
a 120 bed medical facility.
This was offered via Crowdcube based on Share
Capital and reached113% of its target
John is now in the process of meeting is investors
and taking is project forward with the funding he’s
secured
Investors were given a range of options from
contributing a £1 for a mention on thieve site to
investing hundreds of pounds for a watch that had
not been developed let alone ready for market.
This allowed Pebble to develop, test and arrange
manufacturing and take it to market with pre-sales
guaranteed. Customers investing up to 2 years
before receiving the actual finished product – It was
so successful that they have just release an updated
watch (2016) using Crowd funding knowing it builds
a market whilst gaining upfront investment.

7. Angels
• Angels fund businesses in their earliest stage
or what’s known as seed funding.
• Some examples where angels can be found
www.angelsden.com
www.venturegiant.com

8. Equity
• Venture equity is a far more common form of funding.
• Typically involves a venture capitalist who invests in a
company in return for some equity
• Weighs heavy on the valuation of the company based
on asking amount
• Famous examples include BBC’s Dragons Den

9. Equity
• Ownership/Participation = Potential Interference
• High Growth and Exit Plans
• Like IPR Based Business
• High Risk – High Return Expectations
• Expensive to Arrange
• Modest Service Costs
• Investment Agreement
• Non-Executive Director (s) required
• £5k to £millions
– This may be difficult to access without a robust Business Plan
TCI can help you sort out your Business Plan and search for those
who may be interested in Providing Equity

10. Summary
• If you want to grow your business, then
finance is available
• Ask your bank – don’t assume they wont lend
• Apply for grants
• Consider alternative sources of debt and
equity finance

11. To find our more or get some
assistance in accessing a range of
funding opportunities
Visit TCI at http://tcipathway.co.uk/
Or Phone Safaraz on
0121 707 0550