Stop, Collaborate and Listen

Crowdfunding is a brand new invention. As these new, agile firms shape the market, they adapt and improve their business models in favour of what works for them and their customers.

collaboration in practice as teachers and pupils unload school furniture from a boat

Yesterday, we heard that RateSetter had entered into an arrangement with SyndicateRoom. The former is a lending platform, the latter, an equity crowdfunding platform. Under the agreement, the two alternative finance platforms will now refer their customers to one another, to provide a better service and meet more of the funding needs of new and growing businesses that are SyndicateRoom's and RateSetter's customers.

FCA Needed to Overcome Funding Gap

Crowdfunding is generating excitement of “fever-pitch” levels, but it needs to be regulated by the Financial Conduct Authority (FCA), according to Richard Martin of Central Union Partners (CUP). CUP is a consultancy providing alternative financing for property projects and investments and linked to peer-to-peer platform ThinCats.

Crowdfunding Struggles To Be Understood

The increasingly popular options of peer-to-peer lending and crowdfunding are "only really understood by around 30 per cent and 20 per cent respectively" of 500 small and medium-sized businesses (SMEs) surveyed by AXA Business Insurance.

AXA says its survey "reveals a worrying picture of firms not being able to access conventional means of finance.