Crowdfunding News – All The Latest Updates
Hi guys welcome to our fortnightly edition of our hand-picked crowdfunding news stories from around the globe. It has once again been another busy couple of weeks with quite a few projects from around the world taking place, so many that we can’t fit them into a blog post! If you missed our last crowdfunding news edition you can catch up here. Today we travel to the land of Alf Stewart (If you never watched Home and Away we are talking about Australia!) and looking at property crowdfunding and return back to sunny Manchester to look at a crowdfunded cat cafe! There’s never a dull moment in the crowdfunding world!
Struth Mate Property Crowdfunding Comes To Australia!
Property crowdfunding has finally came to Australia and the concept has opened up the market to young investors and those with less cash to invest according to ABC News.
Young investors in Australia want to cut out ‘middleman’ banks, accounting firm BDO chairman Sherif Andrawes mentions that “Crowdfunding provides access to a whole new group of investors, this is not the mum and dad investors that the Government likes to talk about, but rather the under 30s.” (ABC News, November 2015).
He makes a valid point that millennials have already been disrupted, as they organise their day to day life via their smart phone or tablet devices. In addition, Andrawes goes on to say that Generation Y shouldn’t experience a jarring change with regards to the way they interact with the world when it comes to investing as a majority have never been to a bank. In essence they are used to taking full control and cutting out a middleman.
Malcolm Turnball and his government are currently working on legislation to allow businesses to crowdsource debt and equity funding.
By introducing both tight and transparent regulations in place, the smaller investor may be able to get a bigger bang for their buck than they do at the moment with the banks. Moreover, the ramifications can lead to stimulating more transactions and help sustain the economy further.
Property crowdfunding investment steers away from the banks, Andrawes predicts that it will be long before they climb onboard. He thinks that in the next five years that Australian banks will own a lot of crowdfunding ventures.
How Crowdfunding Has Changed Property Investing in the U.S.
Although crowdfunding is still in its infancy, property crowdfunding in America has rapidly changed the way people in invest in property.
This shift has brought benefits not only for investors but also for real estate companies and for the real estate market as a whole. (Forbes, December 2015).
Property crowdfunding on the other side of the pond has become easier for investors due to legislation such as Jumpstart Our Business Startups Act in 2012, some of the previous barriers were removed and smaller businesses and start-ups were now eligible to raise capital and advertise their offerings in more of an open way than ever before.
As Nav Athwal points out in his recent article on property crowdfunding for Forbes, the beauty of crowdfunding is that instead of having to rely on connections to pinpoint property deals and having to put $100,000 or more into a single deal, investors can access these deals from the convenience of their mobile devices. He goes onto say that as CEO and founder of RealtyShares he has experienced first hand how easily first time and veteran property investors have found this new approach. As well as having better access, property crowdfunding appeals to many as investors can start investing with as little as $1,000.
If you would like to know more about the property crowdfunding process we recommend visiting our Crowdfunding Process page.
In addition, if you would like to know about real estate crowdfunding in the U.S. this Google Plus Hangout with the CEO of RealityMogul is worth watching to gain a further insight.
Image Source : Wharton University of Pennsylvania
Crowdfunding App Tilt Sets its Eyes on the UK
Mobile crowdfunding app Tilt is looking to bring crowdfunding to the mobile masses in the UK after a successful launch in the US. (Harder Blogger Faster, December 2015).
The function of the app is for groups of friends to pool money together for a group goals such as fundraising or funding a trip for example.
Legendary U.S. rapper Nas used the app to crowdfund money for Stanley Young, an unemployed construction worker and single father whose house was destroyed by fire in 2013. The Brooklyn born rapper raised $64,000 from using Tilt for the father of eight.
Talking of apps keep your eyes peeled for our very own House Crowd app!
Image Source : Harder Blogger Faster
Crowdfunding Predictions for 2016
But what’s in store for crowdfunding in 2016?
Smarter Crowdfunding – A lot of people are taking a closer interest in what is happening in crowdfunding and how the industry works, and this will continue into 2016. Research from one crowdfunding company showed that crowdfunding investors are highly educated and make rational decisions. They also mention that in 2016 a lot more investors will be investing in larger sums.
More Partnering – It is rumoured that there will be more partnering between so-called alternative investment, traditional investment and major brands. (Bdaily, December 2015). We have already seen this year with Crowdcube and Amazon Launchpad, so watch this space for larger and exciting partnerships next year!
Bigger companies will take interest – Attitudes from bigger companies will change and the will see the light. A few analysts reckon that crowdfunding will become more mainstream rather than a form of alternative investment. This year we have seen companies such as Brewdog raise 10 million pounds with their crowdfunding campaign and can definitely see in 2016 that bigger brands will crowdfund from looking at these standout campaigns.
Investments will be bigger – As previously mentioned, 2016 is predicted to see larger investments. In Bdaily, it was mentioned that over 20 campaigns had raised over a million pounds, firmly placing crowdfunding as a way to secure Series A funding. This trend looks like it will continue next year and we may see crowdfunding become part of more Series B and Series C fundraising.
Crowdfunded Kitty Cat Cafe In Manchester
Sisters Ellie and Sarah Close have set up a crowdfunding campaign in order to open their very own cat cafe in the city centre.
Ellie and Sarah hope their unusual venture will draw in hundreds of cat fans, the idea of the cat cafe is that it will act as a sanctuary offering customers some much needed relaxation and stress relief.
Customers will be able to learn about the breeds and about the individual cats. They’ll even have their own Twitter profiles!
Cat Cafe visitors will be invited to grab a coffee and snuggle up with a cat on comfy sofas and beanbags.
In addition, for a small fee, customers will be able to spend time in the café whilst enjoying snacks and unlimited drinks, free Wi-fi, computers, television and video games (we like the sound of this!).
The sisters are currently seeking £15,000 funding to kit out the cat café with climbing frames, bedding and water fountains, if you are a huge cat fan and are interested, you can view their campaign here.
Unfortunately, at The House Crowd we can’t offer you the chance of having a coffee with your very own Mr Snuggles BUT we can offer you some guides on Manchester (North and Central) and also our South Yorkshire guide. For our southern friends what do you think about our project in Wembley?
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.
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