Asoka is an Independent Finance Director and Management Consultant based in London. He works with growing companies as their part time Finance Director and is the Founder of AKCA Consulting, which helps companies improve their financial health.
Crowdfunding is the new phenomenon of funding for startups and is growing fast.
Crowdfunding is online funding through web sites that enables you to describe your business idea and raise money from a crowd of small investors. Some better known sites are Kickstarter , Indiegogo, Crowdcube, Seedrs with many more proliferating.
It’s a simple concept that the internet has enabled but the consequences can be complex.
Whether you’re trying to raise money or become an investor, here are some of the pros and cons to consider.
1. Crowdfunding may not comply with FSA regulations (Financial Services Authority) – there seems to be ways around this by offering freebies and discounts to investors
2. You may not raise all the funds required – if the total cash asked for is not taken up, then the transaction is not completed