There is a real buzz about crowdfunding at the moment and more and more entrepreneurs are seeing it as a viable way of getting their hands on much needed investment. It's a topic we often hear investors and entrepreneurs discussing at industry events, such as South West Founders. This monthly meet-up, which TLT sponsors, is aimed at connecting local entrepreneurs with other like-minded people including tech investors.
Popular crowdfunding sites such as Crowdcube and Seedrs are experiencing significant year on year growth and we are regularly seeing new platforms enter the market. 2014 was a bumper year for crowdfunding, with Seedrs closing its largest ever funding round when NearDesk - a start-up that offers touch in/touch out desk and meeting room rentals at locations across the UK – broke the £1 million mark.
Many entrepreneurs see crowdfunding as an exciting and easy way to access investment, but companies should consider the advantages and pitfalls of crowdfunding before embarking on a campaign.
At TLT, we have vast experience of raising finance through crowdfunding, in addition to venture capital, business angel investment and venture debt. If you would like more information on crowdfunding and other methods of fundraising do get in touch.
This publication is intended for general guidance and represents our understanding of the relevant law and practice as at February 2015. Specific advice should be sought for specific cases; we cannot be held responsible for any action (or decision not to take action) made in reliance upon the content of this publication.
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