Crowd funding


Crowd funding - also known as crowd financing or crowd sourced capital - allows a number of investors to individually invest smaller amounts of money into a business. The individual investments are then pooled together to help a business reach its funding target. It has become increasingly popular in the form of online crowd funding.

Depending on your circumstances, crowd funding can be an option for businesses that have struggled to raise finance through loans or other conventional funding methods. You should make sure your idea is protected before putting it on a crowd funding website.

The process

You can submit a pitch to a crowd funding website that summarises your business and what you want to achieve with the investment. Your pitch should also list the amount that you want to raise and the percentage share of your business that you’re offering in return for reaching your funding target – if you’re willing to take on external investors.

Most crowd funding websites won’t charge you for publishing a pitch, but they may take a commission when you reach your target – so you need to factor this into your investment total.

You may want to offer a reward to investors as an incentive to invest in your pitch. For example, you could offer a discount on your services or products.

Investors using crowd funding will usually look for:

  • evidence of early stage development or expansion
  • a business that shows potential for a high return on their investment
  • a business in sector that they have a personal interest in

Pros and cons


  • crowd funding can help you raise awareness for your new business
  • it can be a fast way to raise finance and there are no upfront fees
  • investors can track your progress and may help you promote your brand through their networks
  • it’s an alternative option for businesses that struggle to get bank loans or conventional funding
  • if you haven’t protected your business idea with a patent or copyright, someone may see it on a crowd funding site and steal your concept
  • if you don’t reach your funding target, any finance that has been pledged will usually be returned to the investors

Common mistakes

Crowd funding may not be right for your business if you have a complicated business concept that people may struggle to understand. You need to be able to explain your business idea in a way that is clear, concise and engaging if you want to attract investors on a crowd funding website.

Funding sources

You can pitch your business idea on a number of crowd funding websites. Different types of crowd funding models are available including: equity, debt and reward.
Find a directory of crowd funding sources on the CrowdingIn website.

Equity crowd funding

Money is exchanged for shares, or a stake in the business, project or venture.

  • ShareIn
  • Crowdcube
  • Seedrs
  • InvestingZone
Debt crowd funding
With debt crowd funding (also called peer-to-peer lending), investors will look to receive their money back with interest.
  • Assetz SME Capital
  • Funding Circle
Reward crowd funding

With reward crowd funding investors tend to have a social or personal motivation for investing. Returns such as tickets, acknowledgments and gifts are usually offered to investors.
  • Bloom
  • Crowd funder
  • Kickstarter
  • Sponsume

Did you know...
We create opportunities, we keep our members informed, connect businesses and we are the 'voice' of manufacturing representing Calderdale & Kirklees.


2 results found 
Yorkshire businesses get behind £10k fundraising campaign

Tuesday 04 April 2017

As preparations for the charity football initiative ‘The Match 2017’ continue to gain momentum, the latest supporters to get on board are Huddersfield-based businesses Magic Rock Brewing and Lindley Financial Management. The inaugural event, which will take place on Saturday 20th May at The MBI Shay Stadium in Halifax, will bring together footballing amateurs and Huddersfield Town legends, in a game that will help to raise much needed funds for Yorkshire Air Ambulance. Both firms have dug deep for the cause, and have each donated £500 in return for becoming an official shirt sponsor. With a running cost of £12,000 per day for the two yellow helicopters to remain active, the organisation relies entirely on donations to continue saving lives. And now further support is required to keep The Match proceeds growing, and help this initiative reach its £10,000 target. Magic Rock Brewing was founded by brothers Richard and Jonny Burhouse and inspired by brewing traditions and the US craft beer scene in particular. The award-winning and ever-growing company produces an innovative range of idiosyncratic beers in their 4,000sqft Tap Room, close to the town centre. When approached via social media and asked to get behind The Match, Richard says there was never any doubt about getting involved: “We are a community focused business, keen to support local initiatives wherever possible. We are aware of the excellent work the air ambulance does for the region, and wanted to do our bit.” Regular charity supporters Lindley Financial Management also had no qualms about signing up to help the event. The independent financial advisers, based in Brighouse, also support Pilgrim Bandits Charity, aiding soldier amputees injured in Iraq and Afghanistan. Commenting on The Match, director Mark Learmont, said: “I hope as many people as possible attend on May 20th. Nobody knows when they may need the help of the Yorkshire Air Ambulance – supporting them is vital and their services must be applauded.” Organiser, and founder of grassroots football specialists Coaches Club, Dave Learmont, adds: “I am so thankful that two local businesses have gone the extra mile to raise awareness and proceeds for this fantastic charity. 100% of all funds donated will go to Yorkshire Air Ambulance, and these shirt sponsorships put us well on our way to hitting our huge target.” But the search for sponsors isn’t over, with the players themselves now looking for individual support. For only £150, companies will secure their name and details on the official match website, alongside their logo on the programme. The players and Town legends are also appealing for members of the public to get on board and buy tickets. Available at £10 for adults and £5 for children, the aim is to provide a fun, low cost day out for all the family. Pre-match and half-time entertainment – as well as a couple of extra special guests – will be revealed over the coming weeks. All tickets must be purchased before the game, via justgiving.com/teams/coaches-club. Further information and updates about The Match and player sponsorship can be found at The Coaches Club website, and on Twitter @cccmatch.
Posted by Scriba PR
Vizulate becomes Approved Supplier on Digital Enterprise scheme

Friday 10 March 2017

Vizulate Digital is delighted to announce that we have been named as an approved supplier on the Leeds City Region Digital Enterprise scheme, which allows eligible small and medium sized businesses across Yorkshire to ‘Invest in Digital’. Running until March 2019, the Digital Enterprise scheme aims to support the growth and development of SMEs in the region through investment in digital skills and technology. Eligible businesses will be able to apply for 40% funding towards the cost of digital projects including digital marketing, social media, web design and development, e-commerce and more – up to a maximum of £5,000. The Digital Growth Vouchers could also fund part of the cost of technology upgrades such as IT and telecoms and, if approved, the business will then only have to cover the remaining 60% of the cost. The Digital Enterprise scheme is a partnership programme which is partly funded by the European Union (European Regional Development Fund), the West Yorkshire Combined Authority/Leeds city region Local Enterprise Partnership (LEP) and the 9 local authorities which form part of the Leeds city region – Leeds, Calderdale, Kirklees, Bradford, Selby, Craven, Harrogate, York and Wakefield. As approved suppliers on the Digital Enterprise scheme with over 10 years’ experience we are able to offer the full range of digital services including: Website Design & Development E-Commerce Digital Marketing Social Media Search Engine Optimisation (SEO) Online Advertising (Google AdWords, Facebook Ads etc.) Video & Animation Integrated Digital Solutions Web Hosting & Email Through our trusted partners we can also provide IT and telecoms solutions. We believe digital marketing represents the single biggest opportunity for businesses to achieve growth.
Posted by Vizulate Digital
2 results found 

Events Posted

2 results found 
Image for
Facebook Advertising Workshop
Thursday 27 April 2017, 09:30 - 12:30
Bridge House, 2 Woodhead Road, Holmfirth, HD9 6PX
£65 - 6 places
Image for
Business Hub Live - Innovation and Research & Development
Wednesday 24 May 2017, 08:30 - 10:30
Firth Street, Huddersfield, HD1 3BD
Free Entry - 50 places
2 results found 
Designed by Kirklees Council
Built and powered by Alcium Software
Close cookie policy popup window
This site uses cookies for analysis purposes only. This helps us understand how you and other visitors use our site. To see a complete list of these cookies or to opt out please access our cookie policy page.

You will see this message only once, but you will be able to find more information about our use of cookies or opt out at any time.