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BRANDREFINERY - THE POWER OF THE CROWD: A LOCAL CROWDFUNDING AGENCY

Home / News & Opportunities / Blog / September 2017 / BRANDREFINERY - THE POWER OF THE CROWD: A LOCAL CROWDFUNDING AGENCY

Date: 07/09/2017

As a fairly new business on the Worcester scene and if you haven’t come across us before, we are a marketing agency that is focused on launching products through crowdfunding. In our time here, we have found that a lot of local businesses have heard of crowdfunding but they don’t really understand what it is, therefore this blog is designed to help identify if crowdfunding is right for your business. 

What is crowdfunding?

Crowdfunding is a tried and tested way of raising finance for businesses by, essentially, asking a large number of people to support you through (usually) financial contributions that help you reach a target amount.

Through crowdfunding, you can use the internet to talk to thousands – if not millions – of potential funders.

In 2015, it was estimated that worldwide over $34 billion was raised in this way,  and the World Bank Report estimates that by 2025 global investment through crowdfunding will reach $93 billion.
It offers a genuine alternative for financing a business to traditional methods and is particularly appealing for retail businesses that are looking to launch a new product.
 
So, is it right for you?

Most products and services are suitable for crowdfunding in some form and depending on the crowdfunding model it can provide you with a unique cocktail of market validation, pre-sales and capital investment that fuels business growth. 
 
The most successful campaigns tend to have the following characteristics:

  • Products and services that are focussed on selling to consumers rather than to other businesses.
  • The company or team behind the campaign has a proven track record in the field or industry that they are launching the product in.
  • That the product or service is genuinely innovative and brings real added value to the marketplace.
  • Has a fully engaged network of individuals or advocates that support the product or service. 
What are the main types of crowdfunding?

Equity: This is a type of crowdfunding where investors commit an investment amount into the company in exchange for a shareholding. The world’s largest equity platform is based in the UK and called Crowdcube.
 
Reward / Pledge: Investors receive a ‘reward’ for investing money in the organisation. This can be in several forms - physical or non-physical. It may include a free gift such as a t-shirt or e-book, a discounted price on a product yet to be launched or a once-in-a-lifetime experience.
 
Debt-based: Investors buy long-term bonds in an organisation in exchange for favourable interest rates on repayments. Bonds are often three to five year agreements.
 
Charitable Donor: A donation to a community project, charity or not-for profit organisation.
 
Are you still interested in finding out more?


Crowdfunding is a market in flux and subject to the changing trends of investors and consumers. We have been involved in the industry from 2012 and can help you to understand if Crowdfunding is right for you, and if so, what kind of Marketing plan you need to put together to execute a successful campaign.
 
Please contact us through our website: www.brandrefinery.co.uk or call 01905 928485

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Richard Slade

Director

Richard Slade is the Founder of Brandrefinery, a specialist Marketing services consultancy focused on new product research, crowdfunding and product launches. Richard is passionate about entrepreneurship, start-ups and helping early stage businesses. His team have helped to raise money for numerous clients across both equity and reward based Crowdfunding models. Now based in Worcester, Richard and his team are keen to develop partnerships with local companies looking to grow through adopting innovative approaches to their Marketing.

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