IT was once a case of hoping for a sympathetic bank manager to back the next big idea.
Now everyone from scientists to artists is turning to crowdfunding – appealing on the internet for ordinary people to back their dream project with cash.
One of the world’s largest crowdfunding websites launched in the UK just six months ago. In Scotland, 32 projects have so far raised nearly £700,000 on Kickstarter.
Two-thirds of Scottish projects reached their fundraising target, better than the 45% overall rate.
On Kickstarter people give money to a project they like in return for a reward, such as a T-shirt or a name in the credits of a project. Other crowdfunding types include individuals lending money, with the aim of getting the money back plus interest, or buying shares in a business.
Tim Wright, director of social media research firm Twintangibles, said crowdfunding was “taking off” in the UK, thanks to factors such as a lack of funding from the banks and greater access to technology.
Scotland’s first equity crowdfunding website – which offers shares in return for investment in companies – will be launched next month.
Jude Cook, founder of ShareIn.com, said: “Instead of getting one big investor investing £200k, why not get 200 people investing £1000 or 2000 people investing £100?”…
Read More at HeraldScotland
