{"id":136,"date":"2016-02-26T05:12:20","date_gmt":"2016-02-26T05:12:20","guid":{"rendered":"http:\/\/blogs.isb.edu\/centre-for-family-enterprise\/?p=136"},"modified":"2025-12-31T09:44:31","modified_gmt":"2025-12-31T09:44:31","slug":"crowdfunding-as-a-source-of-capital-for-family-business","status":"publish","type":"post","link":"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/2016\/02\/26\/crowdfunding-as-a-source-of-capital-for-family-business\/","title":{"rendered":"Crowdfunding As A Source Of Capital For Family Business"},"content":{"rendered":"

Since the financial crisis, family businesses remain wary of taking on too much debt. Simultaneously the credit crunch in the last decade has pushed family businesses towards non-banking channels to raise capital. A 2014 KPMG International survey showed that 58% of family businesses are currently seeking external financing to fund their investment plans.<\/p>\n

Crowdfunding, as opposed to mini-bonds or crowdlending, comes in two main flavours: so-called rewards crowdfunding, where backers are pre-sold products or services so that entrepreneurs can raise enough capital to start to launch their business concept; or equity crowdfunding, where backers receive private shares in exchange for pledges.<\/p>\n

In the US, where mini-bonds are yet to gain a foothold, crowdfunding has been a popular source of capital-raising for many startup entrepreneurial ventures as well as small family businesses. So far the record for the highest crowdfunding campaign has been $88.3 million raised by a video game developer, Chris Roberts, with over 972,000 backers. The Veronica Mars movie based on the popular TV show met its funding goal in 10 hours and ultimately raised $5.7 million, while a campaign to launch a card game featuring exploding kittens garnered $8.8 million in backing.<\/p>\n

However, according to Forbes, the average successful crowdfunding campaign is only around $5,000. Hence while crowdfunding might not be a suitable capital-raising tool for large family businesses, smaller firms or entrepreneurial ventures could well benefit from a crowdfunding strategy.<\/p>\n

Source: CampdenFB<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

Since the financial crisis, family businesses remain wary of taking on too much debt. Simultaneously the credit crunch in the last decade has pushed family businesses towards non-banking channels to raise capital. A 2014 KPMG International survey showed that 58% of family businesses are currently seeking external financing to fund their investment plans. Crowdfunding, as […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false},"categories":[2],"tags":[],"yoast_head":"\nCrowdfunding As A Source Of Capital For Family Business - Thomas Schmidheiny Centre for Family Enterprise<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.isb.edu\/centre-for-family-enterprise\/2016\/02\/26\/crowdfunding-as-a-source-of-capital-for-family-business\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crowdfunding As A Source Of Capital For Family Business - Thomas Schmidheiny Centre for Family Enterprise\" \/>\n<meta property=\"og:description\" content=\"Since the financial crisis, family businesses remain wary of taking on too much debt. 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