Advertisements
Tag Archives: Small and medium enterprises

Wowcher Selects BankToTheFuture.com as Equity Crowdfunding platform for Fabfob fundraising campaign

19 May

By Robert Hoskins

BankToTheFuture.com, an equity crowdfunding platform that allows people to invest in start-ups and mature businesses, is providing an investment platform for Fabfob, the latest venture by Wowcher founder, Nick Brummitt, who has chosen crowdfunding over traditional venture capital funding.

BanktotheFuture.com Equity Crowdfunding Platform

If the government was serious about helping SMEs, it would pump cash into companies like BankToFuture.com. BankToFuture.com is a job creating machine

Fabfob is designed to tag valuables such as keys, mobile phones, laptops, cameras, iPods and passports. If these items are lost – and subsequently found – Fabfob gets them back to their rightful owner quickly and safely.

Since the pitch went live, it has already raised over £40k. BankToTheFuture.com provides funding through the collective effort of individuals who network and pool their money to support the efforts of entrepreneurial people and organizations.

Simon Dixon, CEO of BankToTheFuture.com, says, “Working with high profile entrepreneurs like the founder of Wowcher, is great news for us. We aim to make crowdfinance less alternative and more a first choice for investors seeking credible businesses and credible businesses seeking finance. It is very exciting that now anybody can invest in such an entrepreneur starting from as little as £50, everybody is now a dragon.”

Brummitt recalls numerous problems while raising finance from banks for Wowcher, the UK’s first daily deal site. He said, “It soon became apparent that banks don’t provide support to those who require it. When I read about Simon Dixon and BankToTheFuture.com about a year ago, I began to follow them with interest. I am impressed with Simon’s vision, truthfulness and experience as an investment banker.

“I did not want to be in the same position as I was with Wowcher, where I create a great product with global appeal only to find I am strangled for cash. Banks are no longer an option. They are just a waste of time and a distraction.”

Seeing the potential of Fabfob, BankToTheFuture.com helped Brummitt develop his skills through The Incubator Course which helps delegates write a business plan, prepare financial forecasts and create a slide show and promotional video. This allowed him to develop a strong pitch for investors.

“Simon is an inspirational character with real vision,” says Brummitt. “He says it how it is, how it has been and how it will be in the future. He showed us an alternative to banks and gave us the confidence to go out there and try it.

“The Incubator Course gave me new skills. It was tough, some didn’t make it through and some realised that they were not quite ready to seek investment, but we all learnt a huge amount. I cannot recommend the course highly enough. It should be on the school curriculum for all business-related courses.”

Brummitt strongly believes that BankToFuture.com will be an answer to the issue of funding. “If the government was serious about helping SMEs, it would pump cash into companies like BankToFuture.com. BankToFuture.com is a job creating machine,” he says.

With the funding raised through BankToFuture.com, Brummitt is confident that he will reach his funding target quickly and get his product to a global market.

# # #

Advertisements

Ingenious Britain in the UK offers 25% Stake in New Equity Crowdfunding Platform on Crowdcube

18 May

Ingenious Britain, the small business campaign, community and advice and information portal, has announced that it is launching a crowdfunding initiative to raise a £500,000 investment in return for a combined 25% equity stake in the business.

By Robert Hoskins

Ingenious Britain announced that it is launching a crowdfunding initiative to raise a £500,000 investment in return for a combined 25% equity stake in the business.

Ingenious Britain in the UK offers 25% Stake in New Equity Crowdfunding Platform on Crowdcube

Ingenious Britain in the UK offers 25% Stake in New Equity Crowdfunding Platform on Crowdcube

The investment will be used to fund, among other things, a more dynamic portal suited to the needs of small businesses, an enhanced digital marketing and content strategy, a fourth print (and digital) Ingenious Britain magazine each year, an expanded personal support network to SMEs online, by telephone and by email and, most excitingly, the launch of ‘Ingenious Britain Live,” which will be the UK’s most interactive and vibrant small business event.

“We are practicing what we preach and are taking Ingenious Britain to the crowd. With the investment we’re planning exciting and innovative multimedia content and events in the space which will prove invaluable to the UK’s five million small businesses,” commented Mark Moore, Ingenious Britain CEO.

“People can pledge as little or a much as they wish and we will work as hard as we can to make sure their investment reaps dividends for us, for them and for Britain’s small business community.”

The crowdfunding campaign is available to be viewed via Crowdcube by clicking here.

The UK’s five million small and medium-sized businesses make up 99.6% of all British businesses; they employ 54.5% of our workforce, and account for 49.5% of our annual GDP. Ingenious Britain has reached hundreds of thousands already, providing advice, information and support through events, social media feeds, its online portal, community and magazine.

“Encouraging them and helping them to perform better will have significant economic benefits for the UK economy,” adds Moore.

# # #

Crowdfunding Expected to Drive Alternative Financing Market to More than $150 Billion by End of Year 2015

14 Apr

By Robert Hoskins

The TABB Group has released a new crowdfunding research report entitled “Capital Reformation: Alternative Financing and the Fate of Intermediaries,” which examines the emerging business models that are enabling smaller investors to provide short- and long-term funding for small- and mid-sized enterprises (SMEs) that account for over 99% of the companies in most economies.

Crowdfunding Expected to Drive Alternative Financing Market to More than $150 Billion by EOY 2015

Crowdfunding Expected to Drive Alternative Financing Market to More than $150 Billion by 2015

“Wall Street is no longer a protected class,” says Adam Sussman, a TABB partner, director of research and co-author with contributing analyst Deepali Nigam. “Intermediaries’ roles and business models are shifting, focusing on platforms, aggregation and agency, resulting in a reformation in how capital markets will function, with alternative financing stepping up.”

The new research study explores the intersection of the SME funding market and emerging alternative financing mechanisms. It reviews the causes of declines in the bank loan sector, the regulatory changes enabling new forms of financing and the impact of those changes on traditional capital markets intermediaries, including investment banks and exchanges.

TABB currently estimates that alternative methods have raised $47 billion for SME’s globally, but “this is a small fraction of the overall SME market,” says Nigam. Current regulatory and secular trends are expected to drive this market to over $150 billion by EOY 2015. At the heart of this capital reformation is a mechanism that allows investors to connect with each other and to the issuer, a trend called crowdfunding.

Under the new JOBS Act in the US, crowd funding allows a company to pool up to $1 million from investors without registering with the SEC, or up to $2 million if the firm provides the SEC with audited financial statements reducing costs for issuance, as long as they raise funds through a registered funding portal.

Limited in the US now to rewards- or charity-based projects, crowdfunding is a non-recourse, pre-payment mechanism, but its premise is to attract investors to different types of SMEs – start up, growth, expansion and rebirth. Different existing and emerging crowdfunding platforms serve different types of investing strategies, such as reward, debt and equity. The TABB report lists eight leading sites in the US, the UK, Germany and globally.

Alternative financing poses some of the same challenges to the primary markets that automated trading posed to the secondary market, Sussman says. In the secondary market, when transaction sizes shrunk and volumes exploded, automating the workflow became a necessity. “With alternative financing, it will be necessary to automate processes because liquidity will come from a very long tail of small investors, not a few large institutions. With a large number of very small initial offerings, an efficient, fixed-cost infrastructure will be critical.”

Capital reformation is necessary, in part, Sussman says, because the capital markets are perceived to have become too focused on the secondary market, i.e. trading, rather than the primary market where the actual capital is raised. “As the exchanges and other businesses focus more on the trading of prices instead of investing in and financing businesses, the long-term needs of investors and issuers have become a less attractive market for the entire financial services industry.”

To learn more about the Crowdfunding industry and startup local Crowdfunding community outreach programs, please join our free American Crowdfunding Center on LinkedIn.com or Meetup.com and don’t forget to follow us on Twitter. Both social media sites allow platform owners and crowdfunding campaign managers to post their news and press releases into the discussion forums.

This will help us find new and exciting crowdfunding stories to cover.  We are currently covering crowdfunding topics such as Business CitiesCommunitiesCrowdfunding PlatformsEducationFilm, Music, EntertainmentGames, VideosSocial GoodSolar, Renewable Energy and Software, Hardware, Technology Gadget crowdfunding PR campaigns.

Leading Research Study Shows America’s Crowdfunding Industry Soared at an Amazing 105% Growth Rate in 2012

9 Apr

By Robert Hoskins

Crowdfunding is accelerating at an unprecedented rate and impacting government policy, informing enterprise innovation, and changing the role of financial institutions around the world. Today, massolution, a research firm specializing in the crowdsourcing and crowdfunding industries, released its annual 2013CF – Crowdfunding Industry Report.

Massolutions Crorwdfunding Research Study Reports that America's Crowdfunding Industry Grew a Whopping 105% in 2012

Massolutions Crorwdfunding Research Study Reports that America’s Crowdfunding Industry Grew a Whopping 105% in 2012

After collecting data from 308 active crowdfunding platforms (CFPs) worldwide and undertaking significant further research, the results reveal that CFPs raised $2.7 billion in 2012 – an 81% increase over 2011 – and successfully funded more than one million campaigns. North America and Europe account for over 95% of the total market.

“Consistent with our 2012 forecast, total crowdfunding volume nearly doubled last year, and with regulatory bodies continuing to pave the way, we expect global crowdfunding volumes to exceed $5 billion in 2013,” said CEO of massolution, Carl Esposti . “While lending-, donation-, and reward-based crowdfunding have thus far been leading this global financial revolution, equity-based crowdfunding is about to take center stage in the U.S. The JOBS Act, which will allow non-accredited investors to make investments in exchange for equity, is expected to go into effect by the end of 2013.”

Growth Rates By Region

Although crowdfunding offers a growing number of countries opportunities to access funds, North America and Europe raised much more capital than platforms in other regions.

  • North America: crowdfunding volumes grew 105% to $1.6 billion
  • Europe: crowdfunding volumes grew 65% to $945 million
  • In total, all other markets grew close to 125%

Growth Rates By Models

The growth in funding volumes was primarily driven by lending- and donation-based crowdfunding, and by SME adoption of reward-based crowdfunding. The growth in lending volumes mainly stemmed from crowdfunded micro-loans and community-driven loans to local SMEs.

  • Donation- and Reward-based crowdfunding grew 85% to $1.4 billion
  • Lending-based crowdfunding grew 111% to $1.2 billion
  • Equity-based crowdfunding grew 30% to $116 million

Most Active Categories

Crowdfunding first gained popularity as a way to fund creative, philanthropic, and social endeavors. This popularity prevails, but crowdfunding’s application for entrepreneurial ventures has also gained traction. Driven by models that offer financial return, the ‘Business/Entrepreneurship’ and ‘Energy/Environment’ categories are the next highest performing categories.

  • Social Causes are most active, driving close to 30% of all crowdfunding activity
  • Business & Entrepreneurship (16.9%), and the two major Art Categories follow: Films & Performing Arts (11.9%) and Music & Recording Arts (7.5%)
  • Energy & Environment (5.9%) is the emerging category among the five most active

“Obtaining reliable and analyzable data on all aspects regarding new constituents- and market-related activity will be critical to the creation of the new crowdfunding industry,” said EGS Managing Partner, Douglas Ellenoff . “This includes more research on funding platforms, deals, investors, amounts being raised, actually raised, industries, and geographies. For the last several years, massolution has committed itself to developing these necessary capabilities, relationships and infrastructure to be the best positioned and most reliable market leader for this purpose.”

# # #

Please click here to help us Crowdfund this website continued editorial development.

Please click here to help us Crowdfund this website’s editorial development

%d bloggers like this: