This one is courtesy of our mates at the BBC; a short video about how young companies are “bypassing banks” and putting their pitch up on the internet. The very brief video touches on some prominent crowdfunding campaigns. The reporter mentions a small confectioners company that produces dairy & gluten free chocolates – a business that is apparently booming. Needing funds to expand the business due to exceptional demand, Moo Free Chocolate spent months going to banks and got nowhere. Snubbed by banks they turned to crowdfunding. Within 24 hours they had all the funds they needed.
Julia Groves, from the UKCFA, enlightens the BBC with the fact that 9 million people have already participated in crowdfunding projects in the UK (a hefty portion of the population) – with over 650,000 projects funded. Christopher Woolard from the FCA makes a brief appearance too, explaining how the regulators have sought out a balance of investors understanding risk but allowing the new source of innovative funding to grow. The video is worth 3 minutes of your time so watch it below.
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