What is crowdfunding?
What is crowdfunding?
Crowdfunding is a way of raising finance by asking a large group of people (the crowd) to invest money.
Each person can put in different amounts of money and this collectively adds up to a much larger pot that goes towards whatever the funds are being raised for – usually a business venture, project or event.
In the case of equity crowdfunding, which is what Bird & Blend are doing, in return for your investment you receive shares in the company meaning you own part of that company. There are often other investor rewards or perks too, such as exclusive access to early releases or dinner with the founders.
How does it work?
Crowdfunding is usually done through a website which is regulated and authorised legally by the FCA. Some of the largest and leading crowdfunding sites are Kickstarter, Indiegogo, Crowdcube, Seeders and Funding Circle.
You simply choose the business proposition (or pitch) that you want to invest in and make a card payment at the desired amount. You can invest any amount you wish and you can make as many investments as you like whilst the pitch is live.
Most pitches are ‘live’ on the website for around 30 days during which time the business will have a target amount they are seeking to raise. If they don’t get to their desired amount in this time then they are not successful and your money will be refunded.
Why is it for me?
The unique thing about crowdfunding, compared to other methods of raising finance or investment, is that you are getting involved alongside hundreds, or sometimes thousands of other people.
This means that you are sharing your passion and excitement in the investment opportunity and the business itself with lots of other also excited and passionate people. Crowdfund-ers tend to be interested in the story behind the business as well as its future growth potential and rewards.
It also allows you spread smaller investments across a few different, exciting businesses building you a portfolio of investments – fingers crossed one becomes the next Innocent Smoothies!
How do I get involved?
Anyone can get involved in crowdfunding. All you need it a debit or credit card to make the payment and an account with Crowdcube.
Visit our pitch page, once it is live to invest and in the mean time pop in your details here so we can keep you up to date as we go along.
You can also get involved by sharing fantastic opportunities (such as Bird & Blend’s) with anyone in your own network who might be interested in investing.