The Latest Crowdfunding News – 9/1/16

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

biotech crowdfunding

As we know, crowdfunding has taken off in a wide range of sectors as an alternative to traditional finance.

In the past two years biotech and other medical based companies have raised funds via crowdfunding platforms such as Crowdcube, Seedmatch, and Syndicate Room.

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

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 soccer crowdfunding

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

gaza crowdfunding

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

crowdjustice crowdfunding

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.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information

 

Property values can fall. Your capital may be at risk & returns may vary. Read our Risk Warning.

The Latest Crowdfunding News – 25/11/15

Crowdfunding News – All The Latest Updates

This week we focus on the latest crowdfunding news from around the world that has caught our attention. As usual we have an array of exciting news to share with you from a man crowdfunding his house on Facebook to Arsenal fans launch a crowdfunding project to pay for Lionel Messi’s wages (we think he would look better in a sky blue shirt if we are being totally honest!).

 

Facebook and Property Crowdfunding

facebook property crowdfunding

A man from Lytham St Annes in Lancashire attempted to sell his property on Facebook by offering a cash incentive for people who shared his post with friends.

Josh Hocking came up with the idea after being extremely frustrated with his agent’s failure to find someone who would buy his property.

He has previously used the social networking site to find a tenant for an apartment he owned, so he thought he would try the same approach with his house.

As you can see from his Facebook post below, Josh gets straight to the point about selling his property.

Okay! So after the huge success of putting my apartment up for rent on Facebook, I have decided to see if anyone wants to buy my Lovely house!  If you share this status and I sell the house (from your share) I will pay you £1000! It’s 2 bedroom, located on Headroomgate Road in St Annes!

Have a look at the photos! Offers around £195,000. With 10% deposit, expect mortgage payments to be around the £875 mark!” (Estate Agent Today, November 2015).

A few days later his post was shared over 79,000 times! We haven’t heard if anyone has come forward yet, but we love Josh’s forward thinking. We don’t recommend using this approach ourselves, if you would like to have professional advice on property crowdfunding we strongly recommend downloading our FREE information pack or contacting us directly.

Image Source : The Independent

 

Property Crowdfunding Booms In Asia

Crowdfunding Asia

In Asia, property crowdfunding is mostly about presales and debts, instead of equity investment, as regulators have yet to pin down the details on how they would like to govern the fledging industry. (South China Morning Post, November 2015).

At the end of last year mainland China had 128 crowdfunding platforms. plus 32 for equity crowdfunding. What is particularly interesting about these Chinese online crowdfunding platforms is that they do not target the property sector. Developers though have been using the platforms to reach out to potential buyers at a much earlier stage in order to reduce inventories.

A chairman of a property company in China mentioned that property crowdfunding is useful because it cuts construction, sales and marketing, whilst speeding up the cash collection.

Despite regulatory uncertainties which are associated with crowdfunding in this part of the world, well known Chinese developers such as Dalian Wanda Group and Country Garden have selling and raising funds via crowdfunding websites.

Singapore has also been using property crowdfunding, despite the lack of clarity on whether such investment activities should come under the oversight of the city state’s monetary authority. Property crowdfunding operator CoAssets which has been in business for the past two years and is now listed on Australia’s junior stock as it expands in the Asia-Pacific region.

It’s interesting to see that on their site crowdfunding projects are listed as “Presales”. An example of this a developer called Jalin Realty International is marketing a residential project in Melbourne. Apart from introduction of the project and contact information, the website showed minimum investment is A$340,000 and that 28 investors are interested as of Friday.  (South China Morning Post, November 2015).

The Singapore company has raised over S$40 million through over 30 successful deals and is now turning its attention to opportunities in Indonesia ad China. If you have an interest in Asia and crowdfunding we recommend reading CNBC’s recent article on equity crowdfunding gains traction in Asia.

 

Single father feeds homeless in Denver after he was helped by crowdfunding campaign

jamesmoss

This was our favourite and most inspiring crowdfunding story that we have heard of late. James Moss from New York, moved to Colorado, he had a job and a house lined up, unfortunately for James it fell through.

James was featured in vlogger Leon Logothetis#GoBeKindTour which gave him $1,000 (£650) plus a week’s stay at a hotel.

Leon Logothetis returned to see how James was getting on and found out that he got a job as a barber but had no reliable transport to get to work and was still living in a shelter.

A crowdfunding campaign was set up immediately for James and in 11 days $54,800 was raised.

To show his appreciation, James and his friends dished out sandwiches and other food to people in a local Denver park. He told a local news channel that it feels really good to help and that has a “little tingly feeling going on”.

He mentioned in a Youtube video with Leon Logothetis that he had never thought that a small act of kindness would spark such a huge reaction from the public.

James continued to share his experience with Leon and said that he has had nothing but good experiences since moving to Colorado. He stated that he received help from strangers even before the crowdfunding appeal was launched.

Image Source : The Independent

 

Crowdfunding Solar For Palestine

Palestine Crowdfunding

Another crowdfunding story that got our attention was from Jonathan Morgenstein, a former U.S. Marine Corps officer who served in Iraq. During his time there back in 2004, Jonathan was tasked with helping to rebuild Ramadi.When the city’s power lines were cut, as you can imagine from the images that were broadcasted back then, chaos reigned; with a strong black market for generators, fuel, and water.

Eleven years later and Jonathan is helping Palestinian people in the West Bank by using solar energy and has set up a crowdfunding campaign called Empowerment Solar.

The Palestinian electricity grid is anything but stable, with brownouts and blackouts commonplace. What electricity is available is expensive, costing Palestinian firms 10.3% more than Israelis and 64.3% more than in the USA. (Energy Matters, November 2015).

The solar energy crowdfunding campaign needs to raise $50,000 to set up operations, train installers and develop its first solar project according to Energy Matters. So far, $4,000 dollars has been raised and has less than a month to go.

Image Source : Andrew E. Larsen

 

Crowdfunding Messi to Arsenal

Arsenal Messi Crowdfunding

Arsenal fans have taken reports that Lionel Messi wants to a move to the Emirates with a pinch of salt, with one fan comically asking 599,999 other supporters to help pay the Barcelona maestro’s wages. (The Independent, November 2015).

The Daily Star last week reported that Messi would be happy to play his trade in the capital providing The Gunners cough up an astronomical £600,000 a week wage packet for the Argentinian.

After hearing the news, one Arsenal fan (@matt_clarky) offered to set up a £1 direct debit a week to Messi and has asked fellow supporters to follow suit. As seen below.

We love your enthusiasm and forward thinking approach Matt, but we think Messi would look better in a City shirt!

?

Unfortunately at The House Crowd we can’t help your club invest in buying a new striker during the January Window but we do offer an array of property investments. If this is something that might interest you why not take a browse here.

Image Source : ZeeNews

 

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.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information

 

Property values can fall. Your capital may be at risk & returns may vary. Read our Risk Warning.