Crowdfunding. Mini-bonds. Peer-to-peer (P2P). Marketplace lending. Collaborative finance… what are these and are they relevant to the mid-market CFO?
They all involve the act of fundraising directly from the 'crowd' – typically individual or retail investors – and bypassing institutional finance. New and cheap technology platforms provide the basis for this disintermediation. It seems you can't pick up a paper without reading about the 'digital disrupters' and how they've been used by the likes of John Lewis and BrewDog to raise capital.
But surely the crowd can't be the source of significant capital? Wrong. That's why the mid-market CFO needs to sit up and take notice.
The average 'crowd' funds raised in the UK has increased by 47% in first half of 2015 and the UK is the centre of crowdfunding globally, with more crowd finance being raised in the UK than anywhere else in the world.
Let's explore if collaborative finance can work for you through the following short summary videos on key collaborative finance topics. We recently completed our collaborative financing series with a Q&A webinar where we answered questions submitted by the ‘crowd’.