Raising Capital
Industry Insights

Equity crowdfunding - where revolution and evolution collide

Raising finance is a challenge, but times are changing...

In the prevailing economic climate where entrepreneurs and business owners struggle to access finance from the ‘traditional’ streams often used in the past, crowdfunding is becoming increasingly popular as a means of circumnavigating and replacing the systems which have, to date, failed to support and stimulate business growth and recovery.

This may seem a harsh judgement, but it is increasingly evident that if we are going to rise phoenix-like from the burning fires of recession, we are all going to have to ‘muck in’ and do it ourselves.  Small businesses are the lifeblood of our economy, comprising some 99.2% of the business community. 

Ultimately, economies are about business and production – not the infrastructure of banks and finance.  These are serious times and we need serious people to deliver serious solutions by means of business, production, employment, hard work and innovation. 

Revolutionary?  Hardly, more Darwinian if anything – if we (the business community) are to survive these trying times, where initiatives are being stifled by lack of funding, we need to look for alternative (or complementary) solutions.  And, it would appear that the solution is not so very complex – ultimately, we are the wealth makers and we can, potentially, bypass the economic system, creating an entirely new landscape en route...

Crowdfunding is a serious solution for ambitious entrepreneurs

Entrepreneurs, investors, business people, service providers et al.  It can facilitate the much needed cash injections directly to those who can use it to best advantage, fortifying the business infrastructure as it goes.  It can even be used as a ‘complementary’ funding method to roust traditional funding from its self-imposed hibernation.

Be under no illusion, crowdfunding is gathering pace and will become a fundamental part of the business landscape going forward.  For all that it is viewed, in some sectors, as a disruptive element, the bottom line is that it makes a significant impact and with a rapidity that institutional solutions could never hope to match. 

Current data has identified annual crowdfunding transactions evolving from a level of £1 billion in 2011 and £2 billion in 2012.  Projections for 2013 are currently a jaw-dropping £300 billion!

The ‘power of the crowd’ is here, the rules have changed and so has the face of British business.

Revolution or evolution?  Whichever way you look at it, it’s a game-changer.

If you're interested in joining the revolution or participating in crowdfunding's evolution then become a member today.

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Growth Capital Ventures (GCV) is backed by funds managed by Maven Capital Partners, one of the UK’s leading private equity and alternative asset managers.