The Power of the CrowdBy joanne | 15th May | Marketing Ideas
The current economic situation has led to some fascinating trends and it’s very interesting to watch some of the fall out.
Younger generations are rejecting corporates and demanding CSR and transparency in light of the banking crisis that led to the recession. Simultaneously older generations are turning their backs on the banks and looking elsewhere for their funding and investments. And, it seems, the power is really starting to sit with the people. Bring it on!
In the past few weeks alone, I’ve read a number of articles and spoken to various clients about crowd funding sites and ideas, so it’s clearly gaining momentum. Here are just a few of the areas we’ve seen:
- The Times reported that prviate investors are now looking to social enterprises for investment; increasing their returns to as much as 6% and knowing their money is invested in worthwhile causes. Visit www.buzzbnk.org for further details.
- Abundance Generation is a ‘building society for low-carbon technology’ where people can invest as little as £5 into renewable energy schemes. It’s expected these will return 5%-9% per annum. See https://www.abundancegeneration.com/ for more
- Funding Circle matches investors and businesses; giving small businesses access to funding at realistic rates and providing a higher return for investors. A client of mine is using this method to build up credibility and financial history in a non-banking arena – smart move I suspect. See http://www.fundingcircle.com/ for more.
- Thin Cats operates at a more serious level; funding projects from £50,000 to £1 million and they promote themselves as ‘Business Loans without Banks’. Visit http://www.thincats.com/
I know we all love to hate the banks. And I love that our society is creative enough to find a solution without them. I only hope it gains ground and attracts serious businesses and investors who can create wealth and jobs through this additional funding stream. That’s the kind of idea that will get our country out of recession.