Crowdfunding is big businesses these days and it is being used in a variety of different ways. It is being used by creative types such as writers and artists to gain funding before starting a project. If these artists have a following, it makes sense to turn to the people who would eventually buy products in the hope of getting money up front. Crowd funding is also a great way for entrepreneurs, innovators and inventors to receive the money they need to carry on with the research and development of their new project. If people have an interest in a certain project, it makes sense to back it and hopefully spur the project on to success.
In many ways, crowdfunding is a great way to raise funds and it is a positive and productive way to go about things. However, it is also being used by businesses to raise funds to start-up businesses and this is splitting opinion. If people are willing to invest and hand money over, there is a lot to be said for market forces allowing this to happen. However, some people believe that firms shouldn’t be using this sort of funding, especially if they have access to other funds. Debate about this topic has arisen again thanks to the early success of EstateDirect.com on the crowdfunding site CrowdCube. This is the new estate agency firm that is chaired by Steve Smith, the founder of Poundland and the company has smashed expectations in the first 10 days. The company set an initial target of £250,000 but in 10 days, the estate agency, claiming to offer a hybrid model, has taken in £660,000 in pledges and funding.
Estate agents are in demand
Steve Smith has talked a lot about the new project and he believes the fact that the public are keen to experience a new style of estate agency is the reason why there has been so much support. While there has obviously been a level of institutional support for the new firm, there has been a great deal of money coming in from individuals who obviously believe in what the company claims to offer. The fact that the funding process has continued long after the target has been met indicates the demand and the firm believes it makes sense to overfund the estate agency firm if people are looking to provide more money.
Any time there is a new provider stating that their appearance will change the market, eyebrows are raised but most people continue with their normal business. The amount of funding behind this new project and the people behind it may mean this company has a better chance of success. Alongside Smith, the project is backed by one of the leading lights behind Match.com so there is clearly a lot of high level backing for this new firm.