What is crowdfunding, how does it work and is it right for your business or project?

Crowdfunding is a way for people, businesses and charities to raise money. It works through individuals or organisations who invest in (or donate to) crowdfunding projects in return for a potential profit or reward. Investing this way can be risky, so make sure you know what you’re doing.

• Crowdfunding is a way of financing projects and businesses through small contributions from a large number of backers, rather than large amounts from one or a few sources.
• More than $2.7 billion was raised through crowdfunding globally in 2012.

• Campaigns can be based around donations, rewards, loans or equity investments. 
• Crowdfunding is booming. In 2012, more than $2.7 billion was raised through crowdfunding worldwide – helping to fund more than one million new projects.
• The UK is also catching the crowdfunding wave, with £200 million invested through crowdfunding in 2012, and significant potential for further growth. 

 But how does crowdfunding actually work, and is it right for you? Click here

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© Nesta , Authors: Peter Baeck and Liam Collins 

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