Equity Crowdfunding Industry Booming in the UK, CrowdBnk Opens New Crowdfunding Operation

22 Jan

By Robert Hoskins

While the officials at the SEC cite fraud as a reason to put their head in the sand, the Equity Crowdfunding industry in the United Kingdom is moving at full steam ahead to fill what a recent Breedon report suggests is a £191 billion funding gap over the next 5 years for small business seeking new startup capital.

CrowdBnk Opens Equity Crowdfunding Operation in the UK

CrowdBnk Opens Equity Crowdfunding Operation in the UK

Small businesses have long been an important source of jobs in the UK and represent a significant portion of the UK output. Given the current economic climate and public spending cuts, startups and small businesses in the UK have an even a greater role to play.

The Crowdfunding  industry offers an alternative source of funding for these businesses. This week sees the dispatch of the eagerly awaited crowd-funded product – the Pebble Watch, which ships worldwide. The startup Pebble Technology raised over $10 million in the US, through Kickstarter, to manufacture their smart watch – proving that people will get behind ideas that capture their imagination.

CrowdBnks opened its doors today and to  kick off the new Equity Crowdfunding event the portal is running the #GreatIdeas Crowding competition for people with ideas to test their entrepreneurial skills through crowdfunding. It is a UK wide competition open to anyone with an idea whatever stage they are at, across all sectors. Success will be judged by the crowd as people back ideas they are excited about here:

Starting on the January 31st and running until the 1st of March, it is free to enter and at the end of the competition the winners get cash prizes to help get their ideas off the ground. The idea that raises pledges worth £10K the quickest will win £7K additional funding from CrowdBnk. The idea that is shared the most by its supporters through social media wins an additional £3K. The funds will be awarded to the entrepreneurs at an event held in March 2013.

CrowdBnk is a crowdfunding platform that works with ideas across the whole spectrum from charity, through social enterprise to business, including those businesses raising capital in return for equity.

Ayan Mitra, CrowdBnk’s CEO stated that, “I started CrowdBnk to prove a point: that there’s another way to get ideas off the ground. It’s not new for people to put their hands in their pockets for something they believe in. All we’re doing is changing the scale. We’re making it possible for more people to get involved and we’re making it easier for entrepreneurs and supporters to find each other in a safe and trusted environment.”

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