The Rise of Real Crowdfunding
The rise of Real Crowdfunding
Amanda Boyle, founder of Bloom
Crowdfunding has become a mot du jour in the media and entrepreneurial circles but the use of crowdfunding as an umbrella term for alternative finance has led to confusion around what it actually is, and what it is really meant to be.
Uniquely, in the UK, crowdfunding is regulated and part of the financial mainstream so it's hard to argue that equity platforms are a genuine “alternative” in the world of alternative finance. They provide loans or facilitate investments as, simply, the online versions of traditional financial institutions, with very similar restrictions or risk profile to the banks.
Real crowdfunding is much more simple - it's transparent and it's accessible to everyone. The project owner explains how much is needed, what the finance is for and what's being offered as rewards – whether it's the first copy of a new album, a personalised thank you, early product samples, or tickets to a show. If the rewards and the project are appealing enough for someone to want to give their financial support, they can promise as much or as little as they like.
Rewards crowdfunding – real crowdfunding – is a genuine alternative finance solution that 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 enabling the spirit of sustainable entrepreneurship to flourish. This is the ethos of real crowdfunding: a more democratic, inclusive way for anyone with creativity, an important community or civic project, or a kick-ass business idea, to reach out for financial support, without having to sacrifice equity or control
At Bloom, we harness the collaborative power of the crowd. We connect an online community that generates financial support based on nothing more than altrusim, curiosity and generosity. Rewards-based crowdfunding is the future of finance, and its popularity is testimony to the ingenuity of funders and project owners alike.
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