Tag Archives: Crowdfunding

Funding – A Changing Landscape

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Many of us are aware that the funding landscape is changing. There are a now a wide number of funding options and providers. However, the landscape related article below demonstrates the propensity to raise funds even when the personal financial return is non-existent.

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The people who have contributed to the crowdfunding platform will probably see no financial return on their investment, but the required funds were raised in a very short time. So what does this tell us about raising finance in the current economic climate?

Firstly, there are clearly funds available for investment. Secondly, the return on investment does not necessarily have to be in financial terms. The simplicity in being able to directly raise funds from a variety of investors, means that any proposition can be put forward, even buying a beach!

Crowdfunding continues to grow in popularity and opportunities like the one above will only add to this. Raising this level of funding for an opportunity that will deliver no obvious financial return to the investors means that those crazy projects with the potential to be profitable should not be dismissed. It may not be possible to raise funds through traditional routes for many opportunities but crowdfunding may provide the initial investment that is required.

Traditional funding options such as the banks and private equity funds will continue to have a large part to play in the finance requirements of businesses and individuals. However, when the opportunity is a bit too quirky or lacking the level of return required by commercial institutions, then why not think out of the box. It can’t do you any harm and it may mean that you end up with a small part of your very own private beach somewhere!

Tim Mills – Corporate Finance Partner