Skip to Content

The Pros and Cons of Crowdfunding

The Pros and Cons of Crowdfunding
Thursday, August 30, 2018

If you have a product that you’d like to launch but you don’t have the money to do it, who do you turn to? Should you seek an investor or apply for a loan? There is a third option available – crowdfunding. This increasingly popular method of financing a project is helping businesses launch their products into the market.


But is crowdfunding the best option for your business? In this article, the Panthera team explain what crowdfunding is, the benefits of it, and what you should consider before committing yourself to this unique finance option.


What is crowdfunding?


Crowdfunding is a form of alternative finance which works by a business seeking funding raises it from multiple small investments given over by a large amount of people. Crowdfunding has surged in popularity since more businesses have taken to using the internet to gauge how successful their ideas will be.


What kind of projects can be crowdfunded?


There any many projects that have come to life with the help of crowdfunded investments. One of the first and best-known examples of crowdfunding came from the rock group Marillion. They could not afford to tour the US after the release of their seventh album. Marillion’s fans came together to fund their tour, raising $60,000.


The most successful example of crowdfunding was the Oculus Virtual Reality Headset. In 2014, Facebook purchased Oculus for a staggering $2 billion.


The pros of crowdfunding


Crowdsourcing provides a range of opportunities for inventors and businesses seeking alternative ways to bring their products to market. Here are some of the other reasons you might want to consider crowdfunding:


Market insight


Crowdfunding gives you a clear picture of the people and businesses who may want to buy your product and where those people are located geographically. Many crowdfunding services allow tiers of donations – the higher a donation, the more a particular investor believes in it, it could be argued. By examining which levels of donations attract the highest number of subscribers to your project, you can check to see how invested some people are in your product and this can provide you with a channel to talk to the people who are taken by your idea.


Defined budget


In the vast majority of situations, the business owners seeking funding are the people who set the budget for a project. You are under no obligation to deliver the product or prototypes until that budget is reached. If you never reach your target budget, then it is reasonable to assume that your product wasn’t likely to be viable in the market anyway.




You can’t crowdfund a project without a crowd. As your project gathers momentum, more and more people will start to find out about what you’re selling which is, in itself, free advertising. The most successful crowdfunded campaigns have also made news headlines before with how much they have beaten their budget.


The cons of crowdfunding


No guarantee of success


Crowdfunded projects sometimes fail because investors are located in a part of the world which a business cannot service. For example, if you are hoping to introduce a new product or service in the UK and you launch a crowdfunding campaign, then it is entirely possible that you will receive the funding you need from India. However, you might not be able to supply your product to that market despite that being where the demand is.


Not applicable to all products and services


Sometimes, your products won’t capture the imagination of your potential investors. Crowdfunding is better suited to products which can excite and inspire your target market. If you are producing something that is more of a necessity rather than a luxury, you shouldn’t expect much from crowdfunding.


We can help


If you’re looking at launching a new product and you need help with working out which funding option suits your business the best, get in touch with our team. Call us today on 01235 768 561 or drop us an email to for help.

What our clients say

For us, there is nothing better than a happy customer. Here are just a few that let us know how much we mean to them.

Pete Dungey

Simple, efficient and most importantly, hassle-free.

We found Panthera via our search for a Xero expert. We knew the software we wanted to use, and needed a forward-thinking accountancy partner who could get us up and running, and teach us the ropes moving forward. Tory and her team have always been on hand to answer our questions, and help us to grow as a business, particularly during periods of big change, such as becoming VAT registered. They are always on hand to alleviate any concerns and help to keep our records in order, which makes our year-end accounts an absolute breeze! Being based in Bristol, our relationship is entirely email based, alongside one consolidation meeting at year end - this keeps things simple, efficient and most importantly, hassle-free.

Pete Dungey Kaleido Grafik Limited
Anita van Eijndhoven

Talk Our Language

The support and service we receive from Panthera Accounting is very good. Everything from regular meetings, a prompt e mail response and the transition of our Xero software (which we find very pro active indeed) has and is all remarkably efficient. We find Panthera talk our language and make any process as painless and easy as possible.

Anita van Eijndhoven Quidne-IT
Ash & Tim Lane

Panthera brush aside the stereotype of the typical accountant

We got in touch with Panthera Accounting by way of a recommendation; we haven't looked anywhere else since. They are an extremely professional yet relaxed group of people. We were slightly daunted by the idea of accountants but Panthera brushed aside y the stereotypes. They are very understanding when answering any questions we may have. They are completely efficient, offer sound business advice, and are fantastically priced. We will continue to recommend them.

Ash & Tim Lane Starveacre Fencing
Jayne Johnson

An Asset to my Business!

The whole team at Panthera are great! Working with them has been a huge support to my growing business. They help me to understand the numbers I need to know. They give me technology solutions like Xero so that I can process things quickly and have access to my own figures. They are quick to reply, highly knowledgeable, nothing is too much trouble and as well as making sure that everything is compliant and on time, they are enthusiastic, professional and fun to work with.

Jayne Johnson Better People
John Baker

Absolute joy - they provide a first class service on every level

Working with Tory and the team at Panthera is an absolute joy - they provide a first class service on every level; from simple Xero issues through to more complicated tax enquiries, they’re always on-hand to help me get it right. I’m certainly not their biggest customer, but I’m always made to feel like their most important one.

John Baker BKR Solutions
John Castle

Professional and Friendly

I would like to say that Panthera Accounting have helped me with my business accounts for more than 4 years now. They have consistently offered an excellent competitively priced service that works both professionally and in such a friendly way that I would highly recommend them to everyone considering using their services.

John Castle Ilexanna Limited & Birch Castle Homes Limited
Jonathan Morrison

They are always there to answer queries and sort out issues

I had been with Mr Dunn for 20 years when upon his death Panthera took over the business. They now play a bigger part in the running of my business, they do all the stuff that has to be done but I don't like doing ie book keeping, VAT, wages, and returns. They are always there to answer queries and sort out issues and make sure all Tax deadlines are met. Their costs are fair, service is great and I have and would highly recommend them.

Jonathan Morrison Wallingford Builders
Pippa Scott

Professional, friendly and personal service.

Panthera Accounting have gone above and beyond the call of duty to guide and support our Company. They offer a professional, friendly and personal service that can take the stressful and sometimes frightening feelings out of running a business. They have guided us through the working of Xero and have offered “teaching sessions” on the day to day running of the accountancy package. Our only regret is that we didn’t join their team earlier.

Pippa Scott Scott's Commercial Services Limited
Sara Southey

Panthera puts the personal back in to accountancy!

Tory and her team have provided a friendly, approachable and helpful service from the start. They have delivered a quality service, above and beyond anything I could have expected. Panthera, with the help of the Xero package, have taken the stress, strain and confusion out of managing my company and personal accounts. I look forward to working with them for many years to come.

Sara Southey Bluestones Garden Design
Tracey Miller

Panthera are fantastic.

Panthera are fantastic. Always professional, going the extra mile for their clients and delivering superb service. I recommend them all the time to my clients.

Tracey Miller Bigger, Brighter, Bolder BBB

Contact Us

Panthera will use the details that you have entered into this form to communicate with you on the subject of your message, and for no other purpose.
Please see our privacy policy for more details on how we manage your data.

Lets Get Started

Move to Panthera

Moving to Panthera is as easy as 1,2,3...

  1. We jump on a quick call to create the perfect service package for your business
  2. You e-sign your terms of engagement
  3. We get your authority to talk to HMRC on your behalf

And that’s it! From contacting your previous accountant, to updating Companies House with your new registered office address, let us handle all of the admin so that you can get on with running your business, safe in the knowledge that everything is going smoothly in the background.

Talk to Us