Crowdfunding is a great way you can raise cash for a charitable cause, project or business. It works similar to Peer 2 Peer lending where a number of people contribute a portion of the total amount required. This is generally in return for something such as a share in the business or a fixed percentage return on their investment.

The first thing you will have to do is develop a pitch or business plan so that potential investors can see what it is they are investing in and what they are going to get in return. You will then need to set a goal or an amount of money you require. This is a great alternative way to raise capital for a project or business that traditional finance such as bank loans may not be available.

Extra cash

Similarly to raising money for your own business, you can invest in businesses for a share of their equity which hopefully become profitable and in turn earn you money.

Top Tip

The pitch is so important when you are raising finance that you need to really take your time and be clear on the reason you are trying to raise money.

Recommended Reading

Equity Crowdfunding – The Complete Guide For Startups And Growing Companies.

Crowdfunding Basics In 30 Minutes – How to use Kickstarter, Indiegogo, and other crowdfunding platforms to support your entrepreneurial and creative dreams.

Sites to use

Crowdcube – Raise money for your business or invest in companies in return for equity.

Seedrs – Raise money for a startup or invest in businesses.

GoFundMe – Fundraising for individuals, groups and organisations.

KickStarter – Worlds largest funding platform for creative projects.

Indiegogo – Specialising in tech startups and entrepreneurs.

Crowdfunder – UK based crowdfunding.