Amanda Boyle created BloomVC (Venture Capitalist) in 2011 to fill a funding gap for innovative ideas, community initiatives, and small business growth with the power of the crowd. Located in the UK, Bloom is a rewards based crowdfunding platform.“Today’s FCA announcements confirm the distinction between rewards-based – real – crowdfunding, and the equity-based models. Loan-based platforms are simply online versions of the traditional finance model, and the introduction of new FCA regulations in April is a recognition that they are burdened with exactly the same restrictions and the same risks as the banks.”
Boyle continues with her perspective by differentiating rewards platforms with investment crowdfunding:
“Reward-based crowdfunding – real crowdfunding – is different. It is a genuine alternative finance solution, which allows people to support entrepreneurs or creative projects in exchange for personalised rewards. Reward-based models are not just about profit, but about great ideas, and connecting the owners of these great ideas with a network of people who believe in the project and want to see it succeed. It’s an inclusive way for anyone to reach out for financial support without having to give up equity or control of their business.”
BloomVC approved of the FCA’s approach to separate rewards based from investment crowdfunding:
“We connect an online community which generates financial support based on nothing more than curiosity and generosity. We welcome the FCA’s decision to separate rewards-based crowdfunding from other models, and we are confident that it is the only source of genuinely innovative enterprise finance.”