Sharing his thoughts about crowdfunding and its benefits, Adam Blaskey, founder of a chain of private member businesses clubs in London known as The Clubhouse, sat down with the Telegraph and revealed that the funding method offers room for growth for startups as well as established businesses as well.
During his interview, Blaskey stated, “If you were launching a businesses two years ago and couldn’t fund it any other way you would crowdfund it and it looked a bit desperate. It was a bit like speed dating. But now no one is embarrassed about using crowdfunding to raise money and there is no stigma attached to it because it is a proven and viable alternative. We are now seeing more mature businesses including some big names use it and it is really exciting.”
Noting that he also considered crowdfunding for his own company, Adam revealed, “The crowdfunding industry is coming of age. It is no longer a place that somebody would go to because they couldn’t get money from traditional sources. Now crowdfunding finances is on a par with bank lending.”
Blaskey shared that will crowdfunding provides finance, it also is a great way for established companies to promote their businesses. “If you raise money from a bank, one person knows about it – the bank. But by crowdfunding it you are getting the added benefits of exposure at the same time, so it is a win-win – you get the money you need to grow and you get a new customer base. It has many advantages.”
Also discussing the recent creation of Crowdcube’s retail bonds, Adam said, “Previously bonds were only something that sovereign nations and multinational blue chip companies would issue, but a crowdfunded bond is fantastic for many reasons. You don’t have to give equity away and by crowdfunding it you are getting exposure and awareness of your business.”
In regards to famous successes, Blaskey added that crowdfunding offers huge untapped potential for businesses to raise money for different needs too. He recalled that Caterham Forumla one team recently used Crowdcube to raise £2 million to take part in the last race of the season.