In December of last year Nesta hosted a half-day event that explored the current state of crowdfunding in the UK and the potential for this new way of financing projects to grow over the coming years.
One of the main things we took away from the day was that there was significant demand for practical information on how the model works and how and where it can be applied. In response Nesta has produced two resources that will hopefully go some way in addressing this demand.
- In Working the Crowd we give a short overview of how crowdfunding works. This is both in terms of the general mechanisms behind the model and how it provides a variety of different options for financing projects through equity, lending or reward based models. As well as this we illustrate how crowdfunding can help finance projects in different areas of society, from the community and voluntary sector to the creative industries.
- As crowdfunding has grown rapidly in recent years so too has the number of providers that facilitate financing from the crowd. In response to this Nesta has developed crowdingin.com, an online directory of crowdfunding sites that help individuals and organisations in the UK raise funds. To make it easier to navigate between the different sites, the directory allows users to filter by the version of crowdfunding they are seeking (lending, equity, donation or reward) and what type of projects they help launch (social, creative or business).
We hope both will become useful resources for entrepreneurs and organisations interested in exploring crowdfunding, but are unsure of how and where to start.
Over the coming months we will also be publishing a series of blog posts discussing the potential and challenges for crowdfunding in the UK