Crowdfunder has raised more than £600,000 in a week on Crowdcube, going some way to help the rewards-based platform grow.

The company will use the funds it raises to connect more projects to partners using business development, including the launch of Crowdfunder Plus, doubling the size of its business development team and expanding its London team, which Crowdfunder think will help it raise revenues of £2.75m in the next three years.

Additionally, Crowdfunder will boost its marketing efforts, taking advantage of events and apps to leverage the brand and focus on growing its technology team to come up with new ways of connecting partners with projects.

“Currently in the UK it can be hard to find funding for a great business, social enterprise, charity or individual project and engage with the community around you,” the company said on its Crowdcube page. “Banks are cautious about lending, grants are hard to secure, and without proof your idea is a good one, it’s a challenge to get the money you need to develop and grow.”

It said it wants to change this attitude by encouraging supporters to give money to great causes and get rewards as a thank you. Crowdfunder has also added community shares to the platform, meaning those giving money can have a share in the projects they are supporting.

Additionally, Crowdfunder announced a strategic partnership with Crowdcube, which will focus on the two companies promoting the growth of crowdfunding in the UK. The two companies will help raise awareness of the UK’s buoyant crowdfunding scheme and also, the country’s fast growth businesses.

“Crowdfunding offers amazing growth opportunities for British business,”Crowdfunder managing director, Phil Geraghty said. “This collaboration will raise awareness of the different types of crowdfunding to ensure projects get the support they need. This is an exciting time for the UK’s crowdfunding industry and this further collaboration will help cement the UK as one of the leading players globally in crowdfunding.”

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If you’re seriously considering using small business or startup investment as a way to fund your retirement, it could well be worth checking out the Abundance platform, which now offers a self-invested personal pension (SIPP).

The Abundance Pension will allow individuals to invest from £5000 in the first year either via installments or a lump sum. Investors can choose to fund any of the projects listed on the site at the time of cash injection, or thy can opt to fund future projects as they appear on the site.

A management fee of 0.3 per cent (£100 minimum) will be charged annually, but the first year is free to encourage people to sign up.

The return is made by Debentures, which are offered as between six and nine per cent, which accumulate as cash and can be re-invested into new Debentures.

When the investor hits age 55, they can access their entire portfolio in line with Pension Freedoms recently announced by the government.

“We hope that this new product’s unique combination of tax relief, the diversified and uncorrelated nature of our Debentures, and the steady and attractive returns they pay from investments matching our customers’ values will make the product a significant new motivation for many people to save more towards their retirement,” Bruce Davis, co-founder and joint MD of Abundance said.

“Finally they will have easy and direct access to choose between diverse investment assets, all with a social or environmental benefit, and all paying consistent, strong and uncorrelated returns within a tax-advantaged pension wrapper.”

Behind the launch, Abundance announced research that demonstrates the need for people to think more seriously about how they fund their pension.

It revealed that a staggering 88 per cent of people think it’s their responsibility to fund their own pension, but only 63 per cent have a pension in place.

Almost half of those questioned said they are concerned about the effects of a globalstock market crash, making them more cautious about using investments as a wayto fund retirement.

However, if they know, or get to choose where their pension pot is being invested, they would be more likely to use investments to pay for their future.

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ING and Seedrs have announced a partnership that will combine traditional business loans and crowdfunding opportunities for new and growing businesses.

ING will become Seedrs’ equity partner in two European territories, meaning it will be able to fast track its small buiness and startups’ plans using the model. Seedrs also said the tie-up will help spread the word about equity corwdfunding thoughout Europe.

Although launching only in Belgium and Luxembourg at the moment, the idea is one that could be replicated in the UK too.

“For entrepreneurs who are driven by innovative ideas, a classic bank loan is not always the best or only solution,” Seedrs said in a blog post. “Both entrepreneurs and banks can benefit from a diversified funding combination. That’s why ING will now offer businesses that it believes can benefit from full or partial funding through Seedrs access to a fast track campaign review process.”

When companies apply for crowdfunding on Seedrs, they will be consulted by ING representatives who will be help them decide which is the best funding option for them. Then, they are able to use INGs fast-track system to submit their campaign and it will be assessed within two days by Seedrs.

Seedrs is planning to grow its business exponentially in Europe over the next few months and partnerships like this will enable it to become a powerful competitor in the equity crowdfunding space.

“We are very excited to be working together with ING in making equity crowdfunding more easily available to the Belgian business community,”Jeff Lynn, CEO of Seedrs said. “To our knowledge this is the first time that a well-respected, global financial institution like ING has partnered with a leading international equity crowdfunding platform like Seedrs, and we think this relationship is very encouraging for the future of business finance.”

He added the company is proud to have been chosen as ING’s partner for this venture and it’s proof that Seedrs’ model of equity crowdfunding doen right is succeeding throughout Europe.

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A new law announced to help US start-ups raise cash could have a knock-on effect on the equity crowdfunding scene in the country.

The legislation states that anyone – providing they have assets worth less than $1m and have earned more than $200,000 over the previous two years – can buy equity in start-up companies, bypassing the need for those companies to launch traditional equity-based or rewards-based crowdfunding campaigns.

It means anyone will now be able to invest in companies they believe in and they think will bring them reasonable returns, whether they are experienced investors or just want to have a go at alternative investments.

However, small companies are only able to raise up to $1m a year using this method, which may, of course, lead to some still using crowdfunding to raise a higher amount on funding. Additionally, it wll be closely monitored, with investors using specially set up marketplaces enabling them to support early-stage businesses.

“Raising money online remains a securities transaction, and you need to be responsible in how you sell your securities to investors,” Corporate and securities attorney Doug Ellenoff told Business News Daily.  “And they need to make sure they work with qualified professionals to do it in an informed way that won’t harm investors.”

“It’s a real revolutionary change in securities law. Consequently, the proposed rules that need to be fashioned by SEC (US Securities and Exchange Commission)…are complex and not obvious,” Ellenoff added.

The US equity crowdfunding market is somewhat less mature than the UK equity crowdfunding scene, although that could be set to change with Seedrs setting its sights on launching in the country.

The incoming law is likely to come into force later this year and we’ll be monitoring it closely to see if and how it will impact the US crowdfunding industry.

Main image of US Securities and Exchange Commission source: Flickr

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Entrepreneurs favour equity crowdfunding over alternative funding methods, such as VC capital and business angels, according to a report published by researchers from the University of St Andrews and the University of Stirling. St. Andrews.

It said UK start-ups are embracing the “Crowdcube economy,” taking the fund offered via crowdfunding with open arms in comparison to the more traditional means of investment.

The figures mean that the UK has one of the most dynamic equity crowdfunding economies in the world, with 69 per cent of the entrepreneurs saying they favour equity funding over other ways of raising cash.

The reasons are that banks are too expensive, or won’t lend against lack of experience, while venture capitalists demand too much equity in exchange for cash. They also usually require revenue before offering funds, but it the company is at such an early stage it hasn’t managed to make revenues yet, it’s a bit of a lost cause.

Although a favoured option for raising cash, equity crowdfunding doesn’t always offer the successes entrepreneurs expect, with only around 40 per cent of those questioned in the study saying they have completed the funding process.

“The study found strong demand for equity crowdfunding  from entrepreneurs in consumer-focused, early-stage firms,” the report said.

“Many were ‘discouraged borrowers’, attracted by the ability to obtain finance quickly with little diminution in their equity or autonomy. Crowdfunding also seems to confer important intangible benefits to investee companies, in terms of firm valuation and product validation.”

Interestingly, investors also said they preferred to support early stage start-ups through crowdfunding rather than direct investment. The tax incentives offered with schemes such as Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) mean equity sites such as Crowdcube and Seedrs are more attractive.

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Indiegogo has released guidelines about the inner workings of InDemand, explaining how companies wanting to use the feature can make the most of it.

We’re not sure whether Indiegogo was struggling to get many people using the feature, or they just didn’t think people were using it effectively, but the tips and tricks will prove useful for anyone

“When we first launched InDemand in September 2014, we wanted campaigners to be able to keep raising funds for their innovative ideas long after their campaigns ended,” the company explained.

“Because they’ve already found success and an engaged community on Indiegogo, the natural next step is for campaigners to continue raising funds for their campaigns even after the end date.”

InDemand means any campaign that reaches their goal can continue funding until the end date, giving more opportunity to raise more funds. Pretty kind of them, right?

It’s not just about money though – it means companies can keep drumming up support for their campaign and can grow their community and essentially, get more exposure for their company and their product.

If they like, companies funding on Indiegogo using an InDemand campaign can also add new perks if, for example, they launch new products or features.

Indiegogo suggested companies hoping to use InDemand should check out Bluesmart, Geek Pulse and Plexidrone to see how they can use InDemand to get more coverage and make their campaign even more of a success.

“It’s our hope that all campaigners continue to find success even after their campaigns are over. We built InDemand as a way for campaign owners to keep raising funds after the initial campaign ends, while continuing to maximize all their efforts they put into the original campaign,” Indiegogo said. “Whether you’re thinking about starting a campaign or already running one, choosing to opt-in to InDemand can be a great option for your dreams to live on long after the initial campaign ends.”

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Non-profit management platform NonProfitEasy has acquired Fundly to offer an entire platform for charities and other non-profit organisations and individuals to manage their campaigns and boost engagement with followers.

Previously, NonProfitEasy only controlled the technology back-end elements, including CRM and database management, events, donor engagement and fundraising, but this tie-up means it can also offer the crowdfunding infrastructure to make non-profit campaigns work even more effectively, drumming up interest from supporters outside its core market.

Fundly will continue to exist and all features will be offered as they are at the moment. NonProfitEasy will invest in both platforms to improve them and make them more integrated rather than standalone products. The main change is the rebranding of Non ProfitEasy’s services to fit under the Fundly umbrella, with NonProfitEasy CRM becoming Fundly CRM, VolunteerEasy transforming into Fundly Connect, and Ignite changing to Fundly Enterprise.

“The new Fundly will be the only platform on the market that offers crowdfunding, peer-to-peer fundraising, donor relationship management, membership management, event ticket and registration, and volunteer management as an affordable, integrated end-to-end solution,” said Lomesh Shah, CEO and founder of NonProfitEasy. “It has always been our vision to shake up the market by providing great technology in a modular platform that is affordable for any organization. We are on track to make that happen.”

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Board Game innovator Hasbro and crowdfunding platform Indiegogo have joined forces to find the next cult face-to-face party game.

The companies are inviting professional game designers as well as novices to come up with ideas for a completely new game that doesn’t depend on WiFi or mobile phone network to be enjoyable.

Although the first couple of rounds of the competition won’t include crowdfunding, once Hasbro has whittled down the finalists to five, it will run the campaigns on Indiegogo to find the overall winner.

The winner will take home $10,000 and will be invited to Hasbro HQ where they can develop the idea with the game manufacturer’s designers and developers to make the game a reality.

“More people are gaming than ever before and the category has grown tremendously with the emergence of a passionate and talented community of game designers,” said Brian Chapman, head of design and development at Hasbro. “We believe big game ideas can come from anywhere and the challenge with Indiegogo will be a new way for Hasbro to connect with the gaming community and discover a big new idea that we can hopefully help cultivate and bring to market.”

Those who want to take part have until September 30th to submit their initial ideas to Hasbro and the finalists will be announced a month later, when the campaigns will go live on Indiegogo. Both Hasbro and Indiegogo will be on hand to offer support to the finalists in order to make their campaigns as successful as possible.

The overall winner will be announced shortly after the campaigns complete on December 1st, promising a very happy Christmas for one lucky person.

“We’re very excited to see the growing trend of large companies leveraging Indiegogo’s global community of early adopters to source, validate and launch innovative customer-driven products faster and with less risk than ever before,” Jerry Needel, senior vice president of sales and market development at Indiegogo said. “By teaming up with Hasbro, we’re helping talented game developers get the global exposure and access they need to help turn their ideas into reality.”

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Entrepreneur magazine has released a list of the biggest crowdfunding trends of 2015 and we thought it would be a great opportunity to give our take on the trends.

Niche-specific Platforms

Although generic platforms like Indiegogo and Kickstarter may be dominating the crowdfunding scene because they have had a lot of publicity and make it easy for the general public to buy wacky products they would otherwise not even consider buying, new niche-specific platforms are starting to explode in popularity.

Whether focusing on the medical community, local projects or providing legal support like CrowdJustice, these platforms focusing on just one speciality are gaining momentum.

Specialists and Celeb Support

Specialist advisors and even celebrities in the case of Seedrs are becoming crowdfunding platforms’ newest recruits.

Advisors are able to help companies build pitches and even find backers if a company running a campaign is struggling. In fact, some individuals are going one step further and have built up a whole company of advisors to help out on the campaign trail.

Although recruiting Andy Murray may not have the same impact on a company’s actual campaign, it certainly attracted some attention to the crowdfunding platform.

Platform Investment

Just last week, two major UK crowdfunding platforms announced they had received funding from investors to further their business.

Seedrs announced it raised £10m, which will be used to boost its marketing efforts around the world, while Crowdcube announced its raised £6m.

It’s not just small companies or startups that need an extra boost from funding, but platforms need it too, in order to grow into new territories and to be able to offer a wider range of services.

Crowdfunding Before Investment

If a company is seeking VC investment, it’s likely they’ll try out a crowdfunding campaign first. Not because they particularly need the cash straight away, but because they need to prove to investors they are willing to go out and find an audience for their product.

Obviously, any capital they do raise will come in handy, but even failed crowdfunding campaigns have been known to go on and get significant capital from private investors once their product has been proven to have some interest.

Read Entrepreneur‘s take on the biggest crowdfunding trends of 2015.

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Crowdcube has raised an additional £6m, taking its total value up to £51m, the platform has announced.

The funds, contributed by stockbroker Numis, Tim Draper, his London-based VC firm Draper Esprit and existing backer Balderton Capital will allow Crowdcube to launch IPO investment opportunities so investors are able to back companies that are about to go public, rather than sticking to the startup and early-stage companies.

“We’re on a mission to help more businesses raise the finance they need to grow, create jobs and deliver returns to investors,” Darren Westlake, CEO and co-founder of Crowdcube said. “We’ve dominated the democratisation of seed-stage equity investment since we launched in 2011 and we’re determined to do the same for larger businesses. We want to put the Public back into IPO.”

Numis has extensive experience working with IPOs and will bring the expertise the crowdfunding platform needs to bring its plans into fruition. It will directly liaise with regulators to ensure high-growth businesses planning to go public are able to list shares on the London Stock Exchange’s Main Market or AIM for purchase by individuals.

Oliver Hemsley, CEO and founder of Numis said: “Numis has a long track record of helping companies access funding for growth and this investment in Crowdcube will put Numis at the centre of the entire investment chain, from initial start-up capital all the way to IPO.

“We are very excited to be part of an innovative fintech solution to help the public markets evolve and connect retail investors directly with fast growing businesses.”

Crowdcube will use the money to take on more staff, ramp up development of its site and expand its marketing spend to create awareness around both IPO investments and its existing bonds, funds and VC round business models.

Westlake added: “Our goal is to solve the funding continuum for ambitious, high growth businesses; delivering seed-capital right through to IPO. We have a proven track record of disrupting the status quo. With high calibre new investors joining the team who share our vision of widening companies’ access to capital, this new round of funding puts us in a very exciting position.”

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