What is Crowdfunding?
Crowdfunding is the method of raising money, typically using the internet and social media, to ask a large number of people each for a sum of money in return for equity, rewards or the loan returned with interest. Money pledged is combined to help reach the funding target. Pledged money falls into two categories – ‘all or nothing’ or ‘keep what you raise’. In ‘all or nothing’ backers are not charged if the funding target is not reached, otherwise, applicants keep whatever funding has been raised.
Types of Crowdfunding
There are four main types of crowdfunding – equity, lending, reward and donation:
- Equity – where a percentage of a community enterprise, or business, is sold as small parcels of non-tradable shares in return for pledges of money. Sites include: www.syndicateroom.com www.angelsden.com www.banktothefuture.com www.crowdbnk.com www.crowdcube.com www.ethex.org.uk www.gambitious.com www.microgenius.org.uk www.seedrs.com www.sharein.com
- Lending (Peer 2 Peer) – where a loan comprising of a collection of individual pledges is made available to a borrower in return for repayment of the loan with interest. Sites include: www.fundingcircle.com www.rebuildingsociety.com www.lendingcrowd.com www.abundancegeneration.com www.banktothefuture.com fundit.buzz www.trillionfund.com
- Reward – where a reward, typically a product or service, is offered in return for a pledge of money
- Donation – where money is pledged for no specific tangible return. UK sites for reward and donation crowdfunding include: bloomvc.com www.crowdfunder.co.uk www.indiegogo.com www.kickstarter.com www.razoo.com www.banktothefuture.com fundit.buzz www.crowdbnk.com www.crowdfunder.co.uk www.gambitious.com www.justgiving.com www.peoplefund.it hubbub.net
“Crowdfunding to Win” Online Training Course
As part of Aberdeenshire Council’s aim to raise awareness and encourage the uptake of Crowdfunding as an alternative source of finance we have 50 free places available on the Udemy “Crowdfunding to Win” online training course.
The course, suitable for all levels, is targeted at anyone considering crowdfunding who wants to know how to run a crowdfund campaign and check they are properly prepared for it through a structured process to build a robust and executable plan to make a crowdfund campaign a success. Comprising fifteen lectures, delivered by video, the course is fully supported by course notes and other downloadable resources.
Usually costing £40, the course is open to individuals, community groups and businesses in the Aberdeenshire area who are interested and would like to use crowdfunding to help fund your idea. Places are limited to one person from any organisation or business.
If you wish to register for a place on the course please complete ALL the details on the form (link below) and email it to firstname.lastname@example.org or by post to:- Economic Development, Aberdeenshire Council, Woodhill House, Westburn Road, Aberdeen AB16 5GB.
A handy guide - Crowdfunder guide - 'How to crowdfund your idea'
Who to Contact for further information:
For advice and support on how to crowdfund your idea please contact: