Crowdfunding

CROWDFUNDING
Dr Edward Thomas Jones
Bangor Business School

Crowdfunding Slide number 2
INTRODUCTION
“Imagine being in contact with 100,000 like-minded people who each want to invest £10 in your business, project
or venture online. That’s the basis of crowdfunding – literally sourcing funds from a crowd.”
UK Crowdfunding Association
www.ukcfa.org.uk
The democratic nature of crowdfunding ensures promising business have access to finance

SUPPORTING INNOVATION
Disruptive financial services supporting innovation and creativity in the economy
www.skybell.com
www.hiddenradiodesign.com
www.scanadu.com

Contents
* 2015 average exchange rate of £1 = $1.47 used throughout the presentation.
INTRODUCTION 2 – 4
FINANCE FOR NEW VENTURES 5 – 14
THE CROWDFUNDING PROCESS 15 – 23
WHAT DO INVESTORS LOOK FOR? 24 – 31
THE PITCH DECK 32 – 39
CONCLUDING REMARKS 40 – 44
APPENDICIES 45 – 46

FINANCE FOR NEW VENTURES
TRADITIONAL AND ALTERNATIVE

SOURCES OF FINANCE FORANEW BUSINESS
What are the options for raising finance when starting a new venture?
Savings?
Family and
friends?
Government
support?
Bank?
Alternative
finance?

TRADITIONALBANK LENDING MODEL
Risk/return, tools + capabilities, judgement
Provide credit and manage risks to maximise returns
Savers/investors Bank Borrower

ALTERNATIVE FINANCE
Alternative approaches to borrowing from a bank
Venture Capital (VCs)
Super angels (mid-2000s)
Crowdfunding (late-2000s)
Growth in internet capabilities and usage (mid-2000s)
Traditional source of funds for start-ups
Individuals making many individual early stage deals
Roots in microfinance and online communities

IT’S NOTHING NEW …
• Crowdfunding efforts were had in the 18th century
when a large pool of investors would finance large
pieces of work by individual writers and musicians.
• Joseph Pulitzer launched a fundraising campaign in the
1880s to finance for the granite plinth required for the
Statue of Liberty.
• Pulitzer launched the campaign in his New York
newspaper and eventually raised the required money
from more than 160,000 donors.
• One of the earliest crowdfunding platforms
(www.gofundme.com) was launched in 2008 after its
co-founder could not find a practical and efficient way
to help the people affected by Hurricane Katrina.
Crowdfunding has been around for a very long time

FOUR MAIN TYPES OF CROWDFUNDING
Each type involves a distinctive relationship between the beneficiary and benefactors
Equity/shares Debt/loans
Rewards based Donation/charity

SMALL SAMPLE OF CROWDFUNDING PLATFORMS
An extensive number of platforms offering diverse opportunities

THE GLOBALCROWDFUNDING MARKET
Summary statistics between 2012 and 2015
North America dominates the crowdfunding industry with 50% of the global share in 2015, followed by Asia (31%) and Europe (19%). Crowdfunding is in its infant in Africa,
Oceania, and South Africa with the three regions combined accounting for less than 1% of the global share in 2015.
Source: 2015CF Crowdfunding Industry Report, Massolution

THE UK CROWDFUNDING MARKET
Summary statistics for 2015
Source: Pushing Boundaries: The 2015 UK Alternative Finance Industry Report, Nesta
SMEs
Small
Business
Donation/
charity
Equity
Approx. 20,000 British
SMEs received £2.2bn
in business funding
through online
crowdfunding.
Peer-to-peer lending
supplied the equivalent
of 12% of new bank
loans to small business.
Donation/charity based
crowdfunding is the
fastest growing model –
up annually by circa.
500% to £12m.
Equity based
crowdfunding is
growing fast – up by
295% from £84m in
2014 to £332m in 2015.

THE GROWING POPULARITYOF CROWDFUNDING
• Advances in technology and the internet has facilitated this type of mass lending, in addition to consumers growing familiarity to online
financial payments (e.g. PayPal) and electronic markets (e.g. EBay).
• However, crowdfunding popularity has also been promoted by the ongoing regulatory pressure to transform the banking industry and banks’
challenges of addressing legacy issues which has reduced lending to SMEs and new ventures.
• Banks have viewed lending to SMEs as relatively more risky following the 2008 financial crisis and there has been a partial withdrawal from
lending to this asset class.1
• Regulators require banks to hold more capital against the loans they issue and the separation of retail banking and other activities, which
causes certain type of SME lending to “fall between the cracks”. For example, www.growthstreet.co.uk is a crowdfunding platform established
to offer overdraft facilities to SMEs due to this separation.
• In addition, most crowdfunding platforms are automated, which reduces their overheads and allows them to provide a low-cost service
compared with traditional lenders who are contending with managing their costs.
Advances in technology and challenges faced by traditional banking
1 Armstrong, A., Davis, E., Liadze, I. and Rienzo, C. “Evaluating changes in bank lending to UK SMEs over 2001-12 – Ongoing tight credit?” Department for Business Innovation and Skills. April 2013.

THE CROWDFUNDING PROCESS
HOW DOES IT WORK?

ANALTERNATIVE LENDING MODEL
Tools + capabilities
Crowdfunding omits the bank from the traditional lending model
Savers/investors Borrower
Risk/return and judgement
Automated marketplace
lending platform

MAIN CROWDFUNDING TYPES
1
DONATION OR CHARITY
Charities and social enterprises use this method
where the crowd give money to great causes they
believe in and do not expect a financial return.
2
REWARD
Good causes, ventures developing new products,
authors, film producers, and other creative arts use
the rewards method. The money pledged isn’t repaid
but benefactors receive interesting and often novel
“perks”.
3
DEBT OR LOAN
This method is like having a bank loan but from
many individuals and not a single institution.
Financial and business plans are presented and
analysed by the crowd who decide whether to
lend or not – usually on an all or nothing basis.
The loan has to repaid plus any interest agreed
upon.
4
EQUITY OR SHARES
This method involves raising finance by giving away a
share of the venture. It is a similar process to issuing
shares on the stock market or offering a stake to
Venture Capitalists but at a lower cost. The crowd are
attracted by a large “upside” potential in often young
businesses in expanding markets. Often the equity
may be wrapped in an efficient tax wrapper which
make campaigns very attractive.
The simplest form of crowdfunding is “donation”; the most complex is “equity”

REWARDS BASED CROWDFUNDING
• Authors, artists, musicians, and film producers
offer early releases of their books, pictures,
music, film as rewards to backers.
• Backers receive rewards based on the amount of
funding they commit.
• The rewards associated with different funding
levels are defined on the crowdfunding
platform.
• This method is popular as it allows them to
receive payment for their creation before it is
produced and increases the interest in their
project.
Ventures offer an incentive for participating in funding a new project
• Ventures developing new projects also use
rewards based crowdfunding.
• In essence, rewards based crowdfunding allows
new ventures to sell their product before it is
produced.
• Finance raised is used to cover the cost of
production.
• The venture’s vision and product is advertised
using promotional videos and social networking.
• Typically, backers receive their rewards within
months following a successfully funded project.

RISK/RETURN OF DEBTAND EQUITY
The financing cost depends on the riskiness of the venture
• Debt/loans type of crowdfunding is when savers lend money to a venture, who then repays the loan on a regular
basis along with any interest agreed upon.
• The venture has to repay an agreed amount of their debts before taking any profit and if it goes into liquidation
then the creditors will get paid first. Because of this, debt/loans is a lower risk of crowdfunding investment
compared with equity/shares.
• Equity/shares type of crowdfunding is when investors buys shares in a venture and become part owners.
• Investors make a return on their investment by either being paid a dividend or by selling their shares at a later
date when the venture’s value has (hopefully) increased. The management team will decide if a dividend is paid,
how much, when it will be paid, and if and when to sell the venture. Therefore, this type of crowdfunding tends
to be higher risk as there is no certainty of the amount or timescale for returns.
• Equity/shares type of crowdfunding should have higher returns than debt/loans type to compensate for a higher
level of risk.

DEBT VS. EQUITY
DEBT OR LOAN EQUITY OR SHARES
Advantages
1. The lender has no management say or direct entitlement to
profits from the venture.
1. Investors can sometimes offer valuable advice and assistance
based on their own experience and educational background.
2. Only obligation to the crowd is to repay the loan and any interest
on time.
2. Repayment requirements are flexible.
3. Interest payments (but not principle payments) are a tax
deductible business expense.
3. If the venture loses money or cease to exist, it is most likely that
investors will not have to be repaid.
Disadvantages
1. The venture will have to make loan repayments during start-up
or expansion, when the need for cash is greatest.
1. Overall, investors will require a greater share of the profits than
the interest on a loan.
2. Additional security may be required to obtain a loan, which may
place personal assets at risk if the venture fails.
2. Investors have a legal right to be informed about all significant
events and changes to the venture.
3. Under most circumstances the individual can be personally sued
for any unpaid balance of the loan even if it’s unsecured.
3. Investors can take legal action if they feel their rights are being
compromised or if they are mislead by the venture’s
management team.
The choice depends on future cash flow and management objectives

THE MECHANICS OF CROWDFUNDING
The process involves an exchange of agreements and a flow of money
Lender Borrower
Investor Entrepreneur
Platform
Loan agreement
Shares/equity
Investment agreement
Platform operator’s bankLender/investor’s bank Borrower/entrepreneur’s bank
Platform agreement Platform agreement
Transferrequest
Transferrequest
Funds transfer Disburse loan/investment
Funds transfer Repayment/dividend
flow of agreements
flow of money
* The flow chart excludes fees/charges incurred from using the crowdfunding platform.

Lender Amount Rate Amount x Rate
1 £50 5% 2.50
2 £25 7% 1.75
3 £30 8% 2.40
4 £60 10% 6.00
5 £70 12% 8.40
6 £15 12% 1.80
7 £50 13% 6.00
Total £250 22.85
THE COST OFALOAN (AVE. WEIGHTED RATE)
Example of a venture wanting to borrow £250 in a reverse auction where the lowest bids win
Lender 7 is excluded
from the final loan offer
as the £50 is not
needed to raise the
£250.
The overall rate of the
loan is calculated using
the average weighted
mean.
Overall rate = 22.85 /
£250 = 9.14%*
A reverse auction ranks
loans according to their
rate and date offered.
Some crowdfunding
platforms fix the rate
offered based on the
venture’s riskiness.
* The above calculations excludes fees/charges incurred from using the crowdfunding platform.

THE COST OF EQUITY
Example of a venture initially valued at £20,000 with substantial growth over 12 months
31 Dec. 2014 venture’s
valuation: £20,000
31 Dec. 2015 venture’s
valuation: £80,000
25% equity/share given to investors
25% x £20,000 = £5,000
25% owed by equity/share investors
25% x £80,000 = £20,000
Venture valuation
increases by 400% in 12
months

WHAT DO INVESTORS LOOK FOR?
THE CHALLENGES OF RAISING EQUITY

VALUATION FOR EQUITY/SHARE CAMPAGINS
• A new venture’s value is derived primarily by the market forces in which the industry operates. In particular, the current value of a venture
is a amalgamation of today’s market forces and today’s perception of what will happen in the future.
• If the venture is in a dejected industry where the market is in decline and the outlook for the future isn’t positive, then what an investor is
willing to pay for the venture’s equity is going to be substantially reduced despite any success the venture is currently having … … …
• … … … unless the investor is either privy to information about possible market shifts in the future or is willing to take the risk that the
venture will be able to change the market.
• Despite valuations being an art, they are not entirely free from any quantitative analysis. However, the method of valuation is mostly
driven by an investor’s sector experience about what the average type of deal is priced at both entry and at exit.
• By looking at the whole sector, an investor will see how other similar ventures are being valued by the market on some basis (e.g. a
multiple of revenue or EBITA). This, in turn, can then be applied to the venture as a proxy for its current value.
• Estimating the exit price will allow an investor to calculate what their returns will be on any valuation relative to the amount of money
they put in.
Valuation is an art and not an exact science

PRE-MONEYAND POST-MONEY
Two important concepts in valuations are:
1. Pre-money - This is the venture’s valuation before it receives outside finance or the latest round of financing.
2. Post-money - This is the venture’s valuation after it receives outside finance or its latest capital injection.
Consider the example where everyone agrees the value of the company is £1,000 and that investors want to put in £250.
The ownership percentage will depend on whether this is a £1,000 pre-money or post-money valuation. If the £1,000 valuation is pre-money, the venture is valued at £1,000
before the investment and £1,250 after the investment is made. If the £1,000 valuation takes into account the £250 investment, then it is referred to as post-money.
1. Pre-money – £1,000 (venture’s share @ 80%) + £250 (investors’ share @ 20%) = £1,250
2. Post-money – £750 (venture’s share @ 75%) + £250 (investor’s share @ 25%) = £1,000
The dilution of ownership is an important issue during the capital raising process. Pre-money or post-money valuations can affect the ownership percentage in a significant
way due to its impact on the amount of value being placed on the venture before investment. If the venture is valued at £1,000, it is worth more if the valuation is pre-
money compared to post-money because the pre-money valuation does not include the £250 invested.
The effect of an investment on a venture’s valuation

MOMENTUM, MARKETS,AND MANAGEMENT
1
MOMENTUM
• The number one factor that investor look at is momentum – they want to see traction.
• Communicate early so people can see how the venture develops over time.
• Signs of momentum are growing beta customers, new pricing plans, different positioning, greater market insights, good press
coverage.
• Momentum also includes product development.
2
MARKETS
• Everyone wants to believe the venture can be big one day. Investors prefer to invest in big markets with ambitious teams.
• There are successful ventures built on smaller markets but the money will “flow” to the large markets.
• Not only will the venture need to describe a big and exciting market but also how it will make progress pursuing that market.
3
MANAGEMENT
• It takes a miracle to get an investment if people aren’t impressed with the venture’s management team.
• The venture must highlight any relevant experience to show they have a deep understanding of the problem they are trying to
address.
• A great team – passionate entrepreneurs who are willing to make their idea work at all costs, have done sufficient homework that
they know what they know and they know what they don’t know.
The main factors considered when investors consider investing

WHAT INVESTORS WANT TO KNOW (1)
1) Churn is a measure of the revenue potential of each customer. For example, a 3% monthly churn rate implies half of the customers will be lost within two
years. A higher churn will make it difficult to grow revenue over time because of the turnover in customers.
2) Contribution margin measures profit per unit, without considering fixed costs and is calculated by taking the total revenue generated by selling one unit
and subtract the variable costs of selling that unit. In most new ventures, costs associated with sales and marketing tend to form the largest proportion of
contribution margin cost (i.e. the variable cost of selling a unit). The greater the contribution margin, the more profitable a venture is on a unit basis and
the more can be spent on sales and marketing to acquire customers and fuel growth. However, contribution margin has to be put into context by taking
account of fixed costs.
3) Gross margin is a measure how expensive it is make the product and is calculated by taking the revenue and subtracting all the Costs Of Goods Sold
(COGS). COGS are the cost of raw materials and expenses associated directly with the creation of the venture’s product/service, not including fixed costs
such as rent. Net margin takes into account all COGS and is therefore a more rigorous measure of profitability.
4) Net income (or the bottom line or burn rate if negative), is the revenue minus all the costs incurred. The burn rate represents the minimum amount a
venture needs to raise to breakeven. By comparing the net income with cash and revenue the financial profile of the venture can be determined and its
future valuation, as well as any follow-on financing risk.
Ten of the most important metrics for investors when valuing a venture

WHAT INVESTORS WANT TO KNOW (2)
5) The most significant controllable expense for a venture is non-personel marketing spend, which typically includes advertisement and events costs. This
expense can be turned on and off from month to month and it provides an indication of the maturity of the marketing process. The optimal non-personel
marketing spend will depend on the payback period.
6) Revenue per employee is a measure of how efficient a venture is in using technology to bring their product/service the market. By their very nature, some
ventures will need more people to bring the product/service to the market.
7) Revenue growth represents how quickly a venture can grow given its current way of doing business. It is a measure of how quickly the venture is
expanding and helps identify trends in order to gauge revenue growth over time. The projections for this metric indicate the potential profitability of the
venture.
8) Salary is the single biggest expense for most ventures. Comparing the salaries across functional areas gives a sense to how a venture pays its employees
relative to market rates. Low salaries could create employee retention problems in the future while excessive salaries reduce the venture’s ability to
finance its growth.
9) Sales efficiency (or payback period) is a gauge for how aggressive the venture can be at marketing and selling its product/services. The longer the payback
period, the greater the risk that a customer churns and the amount invested in marketing to acquire the customer is lost.
10) Sales quotas provide indications of how easily the product/service is sold and how well run the sales team is. Sales quotas will depend on the
product/service type, where smaller predictable deal size would be expected for new ventures along with momentum in the number of customers closed
per week.
Ten of the most important metrics for investors when valuing a venture

STAGES OF FINANCE (1)
1. Early stage finance
• Relatively small amounts of finance to carry out research or feasibility studies, prove concepts, complete product development, initial marketing, and
organising the venture team.
• The focus is on getting to a “proof-of-concept” of a product/service, test marketing, strategy, or financing patent and intellectual property
protection.
2. Development or expansion finance
• Once there is proven market acceptance, there needs to be significant investment in marketing and sales. Finance for initial equipment is required
for putting the plan into action, creating partnerships with major suppliers or customers, and establishing an executive management team for the
venture.
• Once large orders are received and there is momentum in sales, investment is needed for scaling production to meet production demands.
• Finally, shifting the production support from development to execution, including transitioning the venture team from entrepreneurial to
professional management practices.
The different stages of equity/shares investment and their effect on the venture

STAGES OF FINANCE (2)
3. Acquisitions and buyout finance
• Once the venture is well established, finance may be required to facilitate aggressive expansion (e.g. buying up competitors or securing executive
management teams from rival ventures). The focus is on buying-up partners for national expansion plans, and/or establishing the venture in global
markets.
4. Recommence finance
• Finance may be required by well established ventures to utilise a new business model, new location, or a new product/service. Or finance may be
required to “salvage” operations and assets before selling the venture.
The different stages of equity/shares investment and their effect on the venture

THE PITCH DECK
TELLING A STORY

PRESENTING THE STORY
• Crowdfunding is not a process of putting a project on platform (e.g. Kickstarter, Seedrs) and waiting for the cash to roll in.
• Not only is careful planning required to deliver a product/service on time but also to partake in a crowdfunding
campaign.
• Successful campaigns are in conversation with hundreds or thousands of people before they even launch. They do this
to understand what their customers are interested in and to get them captivated by the new venture.
• The product/service launch will receive much more interest if there are people already engaged in the venture’s mission.
• Adequate homework, a clear strategy for engagement, well-defined production processes, the correct platform, and a
project that catches the imagination and creates an emotion will help achieve the venture’s crowdfunding target.
• Kickstarter has provided a useful online “Creator Handbook” for tips on planning a crowdfunding campaign (see
www.kickstarter.com/help/handbook).
• Cautious is needed with information provided on a crowdfunding platform as ideas and concepts can be stolen if they
aren’t protected (copyrighted) correctly.
Communication, communication, communication

THE PITCH DECK
• A pitch deck is crucial for debt/loan and equity/shares crowdfunding campaigns but some of the concepts can be used for
rewards and donations types.
• It is a brief presentation to provide the audience with a quick overview of the venture’s goals and objectives.
• A pitch deck is not expected to answer all possible questions. It is to open peoples minds to the venture’s objectives and get
them excited to know more.
• It includes enough information to present the story but not too much as to overwhelm people or have the story lose clarity and
focus. The big points should be presented in a clear way and some questions are left unanswered.
• Compelling decks are concise, typically 10 – 14 pages. Separate documents, such as executive summary or dedicated technical
documents, can be used to cover complex product/service images and descriptions, patent details, technical explanations, etc.
• Pitch decks are an evolving document, continually being updated to reflect the rapid learnings and growth experienced by a new
venture.
• Eleven core slides are included in most initial pitch decks .. .. ..
A key document for communicating with lenders/investors

CORE SLIDES INAPITCH DECK (1)
1. Vision
A very short memorable summary that combines the goals and objectives of the venture.
Communicate all aspects of the venture’s history, current situation, and future
2. Traction
The venture’s timeline with key milestones achieved to date and expected growth over the coming years,
Press, partnership, and accolades, and any customer success stories testimonials.
3. Market opportunity
A definition of the market and the business environment,
The total market size in monetary terms and what’s the venture’s potential share,
Any macro trends and insights to support the venture’s vision.

4. Problem and current solutions
A critical analysis of the real problem solved by the venture,
Current solutions, including what they are doing right and wrong (competitors are not demeaned!).
5. Product/service
An explanation of how customers will use/value the venture’s product or service,
Images and visuals are better than text to tell customers’ story.
6. Business model
A description of exactly who are the customers and the pricing model,
The number of customers to date and the revenue generated,
An explanation of the life-time value of an average customer (e.g. how many months are they with the venture, how much money do they spend).

7. Market approach and strategy
A critical explanation of how target growth rates will be achieved,
An outline of where potential customers are currently looking for a solutions to their problem,
The venture’s strategy to get ahead of the competitors in finding new customers.
8. Team and key stakeholders
Key team members, including any relevant prior positions and successes,
Relevant expertise and a description of which roles are the keys to success of the venture.
9. Financials
3 - 5 years of financial projections,
Key and critical assumptions in the model of expenses, customer conversion, and market penetration.

10. Competition
An identification of the competitors and an explanation of why they have succeeded, and how does the venture truly differentiate from them,
The venture’s advantages.
11. Investment
How much capital the venture is looking to raise and with what type; equity, debt, or convertible notes1,
The time line for the crowdfunding campaign,
Any existing and notable investors,
How the proceeds will be used, e.g. sales and marketing, new hires, product or service development, capital expense/equipment.
1 Convertible notes are sometimes used during shares/equity crowdfunding campaigns when the venture wants to delay establishing a valuation until a later round of funding. Convertible campaign allows
current investments to be converted into equity in the future, at a discount compared to other investors.

DECIDING ONAPLATFORM
• What type of funding is required? Donation, reward, debt, or
equity?
• Is the venture for a specific sector, geography, or theme?
• What is the theme of the platform? General vs. niche
platforms?
• Which platforms do the donners, customers, lenders, investors
use?
• Which platform do competitors use?
• What support does the platform provide?
• Which social application (e.g. Twitter, YouTube) are provided to
share news?
• How easy is it to find the platform through online search
engines?
• Is the platform a member of the UK Crowdfunding
Association?
The right platform can help achieve a crowdfunding target
Abundance is a loan/debt crowdfunding platform for social and environment
ventures.
The black UK Crowdfunding Association’s logo is assigned to platforms that
have signed up to a specific code of practice.

CONCLUDING REMARKS
PUTTING IT ALL TOGETHER

SUMMARY
• Traditional banking institutions face a number of challenges that has reduced their lending to new
ventures.
• Advances in technology and the internet capabilities, along with the demand for alternative finance, has
facilitated the growth of crowdfunding.
• The four main types of crowdfunding are equity/shares, debt/loans, rewards base, and donation/charity,
and each has its own advantages and distinct relationship between the beneficiary and benefactors.
• Donation/Charity – the crowd gives money to great causes they believe in and do not expect a financial
return.
• Reward – the money pledged isn’t repaid but benefactors receive interesting and novel “perks”.
• Debt/Loan – this is similar to having a bank loan but from many individuals and not a single institution.
• Equity/Shares – a share of the venture is given to investors in return for finance.
• The simplest form of crowdfunding is “donation/charity” whereas the most complex is “equity/shares”.
Crowdfunding is becoming a popular financing option for new ventures

SUMMARY
• The financing cost will depend on the riskiness of the venture.
• The amount of finance that should be raised depends on future cash flow, management objectives, and the
stage of the venture.
• Investors will look at various metrics to decide upon the feasibility of the venture. The main factors
considered are momentum, markets, and management.
• Communication is critical in a successful crowdfunding campaign and a pitch deck is used to communicate
all aspects of the venture’s history, current situation, and future.
• A variety of crowdfunding platforms exists, and the choice of platform will depend on the objective and
type of campaign.
Crowdfunding is becoming a popular financing option for new ventures

LESSONS LEARNT
• Considerable time and effort is needed to run a successful crowdfunding campaign. The amount of time required can be
two to three times more than borrowing from a traditional lender/investor. The information presented during a
crowdfunding campaign must be to the same standard as required by other finance raising methods.
• The flow of individual questions from would be lenders and investors and be substantial and most will be shown on a
public forum. A video interview can be very useful to reduce the flow of questions and stimulate interest in the venture.
• The number of sophisticated investors who write cheques of £25,000 and above is small, so large crowdfunding target
amounts will require hundreds of small investors. A venture can impose a minimum investment amount.
• Avoid investors that are “fishing” – time is short and it is not possible to talk with all lenders and investor.
• When producing the pitch deck, avoid the formatting pitfalls of PowerPoint by saving it as a .pdf document.
• US lenders and investors are excluded from UK crowdfunding platforms, so if US finance is a target then the venture will
need to be accessed through a US platform.
• The venture’s reputation may be damaged if it isn’t full funded therefore it is important to set practical financing targets.
Useful tips to take full advantage of the crowdfunding process

ANYQUESTIONS?

APPENDICES
USEFUL INFORMATION AND RESOURCES

USEFUL RESOURCES
• www.ukcfa.org.uk – the UK Crowdfunding Association website
• www.nesta.org.uk – UK charity with the aim of bringing innovative ideas to life
• www.alternativebusinessfunding.co.uk – an introduction to alternative finance platforms with case studies
• www.british-business-bank.co.uk – provides the business finance guide and links to government backed finance options that
ventures can get involved with
• www.crowdfundbeat.com – international news and information for the crowdfunding industry
• www.crowdexpert.com – international news site featuring how-to guides, interviews, and a directory of platforms
• www.crowdsourcing.org – website for Massolution, a crowd-solution research and advisory firm

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