Offering up his insights about crowdfunding, Crowdcube co-founder Luke Lang sat down with International Business Times to share details about the funding method and why so many are turning to it for their businesses/projects.
While discussing the difficulties entrepreneurs have to finding angel investors to give to their businesses:
“Angel investors, by their very nature, were very few and far between, they were very much the rich and the wealthy top 1% of citizen, so they were very difficult. I think the interesting thing to highlight with investors is how dramatically the profile or demographic of a crowdfunding differs from a traditional angel investor.”
Also noting that entrepreneurs are not the only ones taking advantage of Crowdcube, Lang stated that businesses like Adzuna and Zoopla are also looking to the platform for funds:
“That’s a strong trend, I guess, as we start to see, increasingly, more interesting and strong business propositions coming to Crowdcube which attracts more investors. They’re making the switch from the way they used to operate five or 10 years ago are actually switching to the online model which they find much more convenient. The quality of the deal flow is strong as well.”
In regards to crowdfunding and its growth, Lang added:
“You’re starting to see a really interesting dynamic and shift in the evolution of crowdfunding, which I think is terribly exciting. Of course we are still very much focused on raising finance for smaller businesses, no less aspirational and ambitious but maybe just in the early stages of their journey when they are looking to raise steep finance.”
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