It’s finance week on Bdaily and we are looking at the landscape of funding and investment, from both sides of the table. Here, Bdaily asks Luke Lang, co-founder of crowdfunding platform Crowdcube, about this new form of financing that’s making headlines.
A lot of people are talking about crowdfunding as an alternative to heading to the bank, why is this?
I think peer-to-peer lending or debt crowdfunding could be deemed an alternative to bank lending. The harsh reality for many start-ups and early stage businesses is that finance from the bank has never really been an option due to the high risk nature of the investment required. This, combined with traditional business angels being more reticent to part with their cash has stifled the growth of many businesses and sectors. Equity crowdfunding websites, like Crowdcube, tackle this perennial funding gap by democratising investment, giving ordinary people, not just the wealthy, the chance to invest in UK businesses in return for share equity.
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