The UK Crowdfunding Association (UKCFA) provides a list of reputable crowdfunding sites for young artists and entrepreneurs to pursue their dreams. However, many people do not realize that they also offer an opportunity for investors looking to get in on the ground floor of a new and exciting endeavour. With so many crowdfunding sites popping up around the world you want to be certain you concentrate your efforts on reputable sites with good track records and access to fundingand ideas that will work well for you. The UKCFA provides connections with many different types of Crowdfunding sites including those intended to assist start up companies, charities and individual ideas. Crowdfunding is a two way street providing financial backing for viable ideas and products as well as investing opportunities. It is worth noting that you should always take advice before using a crowd funding platform. Either call an accountancy firm or a law firm to get a bit of legal advice and financial advice before going ahead.
Categories of Crowdfunding Platforms
As crowdfunding grows in popularity so too do the categories of products you are able to fund. Although it all started with a focus on music and creative endeavours it has continued to grow providing access to funds for many different industries. Looking at environmentally friendly ideas or ideas using renewable energy projects the “green” category is sure to grow in opportunities as more and more people use their genius and put it to good use to save the planet. Sites such as Abundance Generation, CrowdMission and Trillion Fund have a focus on “worthy” causes that can help improve energy usage, cut down on pollution or utilize sustainable materials and approaches to produce their products. Another example is the world of gaming which can lead to great success but costs plenty of money to spend the time required to develop an outstanding gaming experience. Gambitious is a unique site dedicated to the gaming industry and can help get projects off the ground. Other focuses match up investors to ideas, support charities and look at companies that will help grow businesses to provide jobs for youth.
From an Investor Standpoint
As an investor you have the opportunity to support an idea you truly believe in. You can read through proposals online and learn about the people behind the ideas and what they stand for as opposed to looking at a portfolio grouped on a specific industry. Not all crowdfunding sites result in ROI as well so it is important to read what to expect from your investment. Many investments will result in nothing more than a good feeling, whereas others go as far as to offer you stakes in the company. Most have limits as to how much you can invest to protect you from yourself. If you are considering investing with a crowdfunding project stick to the sites listed by the UKCFA to avoid disappointment or worse getting taken.
From an Idea Perspective
If you are the person with the ideas make sure you read the fine print and understand what is required of you and what you might be giving up (if anything). Be certain you understand what can happen to your idea and what will happen to funds if you do not reach your target. Again it is advisable to stick with sites on the UKCFA listing to protect yourself from potential issues.
