Kickstarter, a US-based website which allows smaller investors to back projects in exchange for rewards, has opened its services to UK users.
In a different angle to other ‘crowdfunding’ platforms, Kickstarter says that it does not support businesses but rather aids projects with a ‘clear goal’.
The platform, which initally outlined its UK ambitions in July, says that a separate UK site will not be created, with projects listed on the site set to sit alongside existing and future US ones.
As part of the process, Kickstarter charges a 5 per cent fee to successfully funded projects where pledges are less than £10, and 3 per cent on those £10 or greater.
Since launching in 2009, some 70,000 projects have been pitched on Kickstarter – with a success rate of 40 per cent.
The most successful pitch to date came in the form of Pebble Watch, which raised $10.27 million from a pitch initially aiming to reach $100,000.
Luke Lang, co-founder of equity-based investment platform Crowdcube, says the launch of Kickstarter in the UK means it is an ‘exciting time’ for the UK crowdfunding industry.
‘The buzz created by the much-anticipated launch of Kickstarter in the UK will raise awareness of crowdfunding,’ he adds.
“But while Kickstarter’s reward-based approach targeting creative projects has won plaudits around the globe, the real crowdfunding revolution is giving people the opportunity to invest in British businesses in return for equity.
‘This more disruptive model for business finance has taken off in the UK with over £4 million successfully funded so far by Crowdcube alone.’