Kickstarter heads for UK
16 July, 2012
Expanding operators will get another source of funding with the launch into the UK of Kickstarter, the US-based crowd-funding platform.
Crowd-funding has become an increasingly popular way of growing businesses over the last few years, especially since banks have tightened up on lending to smaller operators. Several different concepts have launched in the UK, but the arrival of Kickstarter is likely to fire up wider interest in the model.
Kickstarter claims to have fully funded more than 26,000 projects since launching in the US four years ago, generating investment of around £180m. The platform has so far been restricted to US-based companies, but Kickstarter has now announced that UK-based proposals will be accepted from the autumn.
Kickstarter’s model takes pledges of support from individuals, though money is only processed if and when a project’s fundraising target is fully reached. It takes a 5% commission on any project that hits its target, and says just under half of all projects that are put up for crowd-funding do so.
The crowd-funding model has been used for an eclectic range of products and concepts in the US, and seems particularly well suited to fledgling food and drink operations that want to grow to the next level. It seems unlikely to rival venture capital or bank funding in scale, but could well prove to be a useful addition to start-up operators’ options.
For more about the Kickstarter model, click here.