Crowdfunding News – All The Latest Updates
Happy New Year guys and welcome to our first crowdfunding news edition of 2016! This year will no doubt be bigger and better for crowdfunding as many people take a closer interest in what is happening in the crowdfunding world and how the industry works.If you missed our last blog post, we mentioned some key predictions for this year, which you can view here. As usual we look at an array of stories and today look at crowdfunding in the biotech industry to looking at crowdfunding site Crowdjustice which recently caught our attention.
Biotech Industry Turns To Crowdfunding
As we know, crowdfunding has taken off in a wide range of sectors as an alternative to traditional finance.
Companies such as Apta Biosciences have raised £2.8 million from using Syndicate Room and Cambridge Nutraceuticals (which is developing a “tomato pill” containing powerful antioxidants from tomatoes) has raised over a million on their crowdfunding project.
According to The Financial Times, advocates believe crowdfunding can help tackle the shortage of finance that has long hindered UK biotech start-ups — a problem often blamed for Britain’s relatively poor record in turning its world-class science into commercial successes. (FT.com, December 2015)
The chief executive of Syndicate Room, Goncalo de Vasconcelos mentions that his platform looks at the more sophisticated investor and just like us, offers a minimum of a £1,000 investment.
One Biotech entrepreneur mentioned that crowdfunding allowed angel investors to harness more funds than they could alone while allowing smaller investors to “tag along” with more experienced entrepreneurs.
If you have an interest in biotech and crowdfunding, we recommend this recent article by Business Weekly on Cambridge based biotech company Axol Bioscience.
Image Source : FT
An Insight Into Nordic Crowdfunding
Last year crowdfunding became a normal way to kickstart a company for Nordic entrepreneurs and in addition to locals also investors from across the world have invested in Nordic crowdfunding projects.(Artic Startup, January, 2016)
Countries such as Sweden and Finland have been early adopters and there has been a lot of interest from overseas when it comes to Nordic Crowdfunding, particularly its tech scene. What is even more interesting is that the majority of top Nordic crowdfunding projects are not tech startups.
Last year’s top firm from Scandinavia was NOA Relaxation, a company that specialises in a natural beverage that reduces stress and increases focus, something which could eventually replace energy drinks. The Swedish firm raised 1.68 million euros from 314 investors on FundedByMe and the original campaign that took place last year was so successful that they closed it early and raised more capital here in the UK and also in The States.
In addition, another Swedish firm also had a successful year, Pugz, which raised 1.32 million euros for its wireless earbuds which can be charged from the phone.
So what’s down to crowdfunding success in Scandinavia? FundedbyMe carried out research based on various factors that influenced crowd investor decision making and their impact on the outcome of campaigns.
Companies that provided robust market statistics were 30% more likely to achieve a successful outcome that those who didn’t. Similarly, those who provided reliable financial forecasts boosted their chances of success by 37. (Forbes, August, 2015).
It could be also inferred that in Scandinavia businesses have a tendency to have very high levels of transparency which reassures investors during the crowdfunding process.If you would like to know more about crowdfunding the Nordic way we recommend reading this Forbes article.
A Crowdfunded Stadium Is Coming To The Motor City
Detroit City Football Club, a semi-pro team from the Michigan city are crowdfunding between $750,000 and $1 million for their very own 6,000 seater stadium.
Altogether, the campaign — dubbed “the largest community-financed project in U.S. sports history” — stands in stark contrast to the development of the new NHL Red Wings stadium just five miles away, which has had a process more secretive, top-down and out-of-touch with local residents. (Next City, December, 2015).
City expects to open the 2016 season in May with the first phrase of construction completed. At the end of May they play non-league side FC United of Manchester who are owned by a community of supporters and have adopted a similar model to Detroit City.
At The House Crowd we unfortunately can’t help you invest in your very own crowdfunded football stadium but we can can offer you an array of investments that are not too far away from various northern football grounds, click here for more info.
Image Source : Next City
Crowdfunding green home decor in Gaza
Despite the ongoing unrest and political turmoil in the Gaza Strip, many young people are staying positive and are trying to make a difference in the troubled region.
Antika, an interior design project in Gaza (named after an antique in Arabic) encourages people to recycle waste material and turn it into something decorative for their homes.
Palestinian architect Doaa Kamel started a crowdfunding campaign on Zoomaal to turn her idea of combining interior decor and environmental responsibility into a reality that can reach more people in her community. (StepFeed, December, 2015).
Kamel and her team of designers strongly believe that small changes in the surrounding environment can make a big difference to people’s lives and help to change mindsets; they believe in the power of simple acts such as painting a bedroom a different shade or changing and creating new living room furniture can create joy and hope for Palestinian people and take their minds off the ongoing political turmoil in the region.
They also plan to spread their recycling ideas by setting up workshop sessions to motivate and inspire their local community and to also encourage young people to use environmentally responsible methods in order to create opportunities for economic growth in the troubled area.
If you have an interest in this particular topic we also mentioned about a Palestinian crowdfunded project in a past blog post, you can read more about Crowdfunding Solar For Palestine.
Image Source : StepFeed
Justice For The Crowd
Our final story of the day comes from a crowdfunding story of the day comes from a site we recently discovered called Crowdjustice.
As you’ve probably already guessed, at The House Crowd we have a passion for crowdfunding and the whole concept of the crowd coming together for the common good whether it involves the likes of start-ups, property, inventions or community projects (pretty much anything!).
We really like the concept behind Crowdjustice, if you have a particular issue that might require legal action, and it affects your community, the platform can crowd together like-minded people to try and protect their particular interests.
So how does this work? They pool together various resources and each specific person can contribute by bringing their very own expertise to the table.
A case that caught our eye from Crowdjustice was Clause 24 – in a nutshell, Cameron et al., believe that it makes complete sense to tax property owners on that part of the rent that has been paid to the lender as mortgage interest.
Crowdjustice are therefore putting together a case against Clause 24 and need your help, if this something of interest, you can get involved here.
What Are Your Thoughts?
Which of our chosen crowdfunding stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.
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