Crowdfunding News – All The Latest Updates
Hi guys and welcome to our fortnightly crowdfunding news edition, as usual we will be covering an array of interesting crowdfunding topics from the UK and around the globe. If you missed our last edition, you can catch up here.
Corbyn To Donate ‘Dream Bike’ Crowdfunding Money To Charity
Last week we read about that Corbynistas raised money so Jeremy could have his dream bike, a Raleigh Criterium.
His supporters raised £6,000 with over 200 people taking part in the crowdfunding campaign. While the initial idea was to purchase the bike for Corbyn, the MP for Islington North told the Independent on Sunday he will give the crowdfunded donation to charity.
Corbyn mentioned that he would purchase the bike with his own money as a 67th birthday treat, so it looks like he’ll running around for a bit until the end of May!
He has not stated on which charity that the crowdfunding money will go to, but Ian Jordan (who set up the crowdfunding campaign) has suggested it would go to Calais Action – a cause that Corbyn has shown a lot of support to recently.
London Cabbies Set Up £600,000 Crowdfunding Campaign For Anti-Uber Legal Bid
A London cab driver’s wife has launched a £600,000 crowdfunding campaign to take on cab-hailing app Uber’s license in the courts. (The Evening Standard, January 2016)
Mercer claims claims that TfL have failed to enforce the law on the likes of background checks and disabled access.
Her Action for Cabbies group said that the issue had to be taken in a radical way to save the black cab drivers and the future of the black cab trade.
She said: “When Transport for London granted Uber a license in 2012, it became a law maker instead of the law enforcer it should be.” (The Evening Standard, January 2016)
The app has shaken up the city’s taxi service since it was launched and has led to many protests by black cab drivers.
Last year, the Licensed Taxi Drivers’ Association received bad news when a High Court judge dismissed their claim that the transportation app was breaking the law in the way it calculates fares.
Artemis Mercer hit back saying “When you travel in a black cab, your driver has invested three to four years in training at their own expense – that’s why black cabs are voted the best taxi service in the world”.
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Equity Crowdfunding Platform Crowdcube Targets The Northern Powerhouse
Crowdcube is set to open a new office in central Manchester which opens in February. The new Manchester branch will make it easier for local young businesses to obtain finance by using equity crowdfunding over traditional sources. (MEN, January, 2016)
The company’s commercial director Matt Cooper told MEN that they are determined to to put Crowdcube at the heart of the creation of the Northern powerhouse.
He also mentioned that they already have a very vibrant investor community in the north and that there is definitely an exciting opportunity to take the North West start-up scene to the next level.
Ideas Britain CEO Adam Shaw stated in MEN that “Having a top-notch crowdfunding platform in place to support Manchester brings a new dimension of potential for the city’s entrepreneurs, and it’ll help to keep momentum flowing in a region that’s already synonymous with innovation and big ideas.” (MEN, January, 2016)
China Crowdfunding Platforms Raised $1.7B In 2015
Even though China’s economy grew by 6.9% last year (its slowest growth in a quarter of a century), according to China Money Network, a total of RMB11.4 billion (US$1.7 billion) have been raised via crowdfunding platforms in China in 2015, up over four times compared to the year before.
However, according to Chinese P2P platform Wangdaizhijia.com the number is only a quarter of the RMB49.5 billion (US$7.5 billion) that was expected to be raised for the year.
What was interesting to see from the data was that an aggregate of 49,242 projects sought to raise money on crowdfunding platforms in China last year, of which around 69% are reward-based crowdfunding, while charity crowdfunding and equity crowdfunding each took 15%.
The reports forecasts that equity crowdfunding will enter a rapid growth period, while reward-based crowdfunding will become a new model for Chinese consumers going forward.
Crowdfunding Site Indiegogo Announces Its Intention To Work More Closely With The World’s Biggest Corporations
Known for helping smaller scale businesses out, Indiegogo has revealed it wants to help the world’s biggest corporations and crowdfund their own research ideas and get customers to vote with their wallets on which to develop by pledging cash to back their favourites.
Indiegogo said that firms would be able to ask its users to suggest ideas for which it could then seek financial backing and input from potential customers. They could also put out their own projects to gauge the potential market and attract funding and would receive promotional and strategic support from Indiegogo staff, it said. (BBC, January, 2016).
The crowdfunding site stated that their programme was open only to Fortune 1000 and Global 500 companies.
Duncan McCann, a researcher at the New Economics Foundation makes an interesting point about the big players who are entering Indiegogo’s programme. “What you get is the established players moving in once people are comfortable with the concept. It will be interesting to see how it plays out. Will we see people going to other platforms?” (BBC, January, 2016).
His major concern is not so much that big players have a way of doing or achieving something smarter, but more to do with the fact that it could drive out the real entrepreneurs who will be the real future engines of the economy as he puts it.
He goes on to say that Customer loyalty these days is disappearing, so engaging people with products is a huge benefit. The big players really can’t lose.
Image Source : Indiegogo
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