Having been “refused crucial funding” to facilitate growth, Output said it was on the “verge of closing” before turning to reward-based crowdfunding and raising £10,000 inside 24 hours. The business, which centres on producing content for the visual communications space, has thus prevented the loss of three jobs and a number of regular freelancers. Output’s issue came to a head towards the end of February when it was discovered that it only had enough money in the bank to pay for that month’s wages. It had previously been refused credit because, according to the business, its stance as an independent publication, run by a young MD, meant it had no physical collateral with which to secure the loan against. In a statement, Output said: “Upon notice that the closure of Output was imminent, the reaction from the communities that we serve was both awesome and humbling. The #StopPress hashtag, through which we were telling our story, exploded with companies and individuals keen to find a way to keep us going — proving once and for all that what we’d been telling the banks and lenders about being an important service for the industry was absolutely true.”
Output used Crowdfunder to raise the capital, and says that it was “up against the clock” to raise the funds in time and keep operating. Four investors came forward on the back of over 4.5m impressions on the campaign and half a million Twitter users reached. Output went on to say: “The support we received from the Crowdfunder team was incredible, explaining our options and helping to push the message out further. Regardless of where a business is, whether it is just starting out or looking for extra funding to push it on to its next stage, Crowdfunder is a platform that everyone should consider as an option for helping their companies or organisations grow.” Read more about crowdfunding:
Research compiled by innovation charity Nesta at the end of 2014 suggested that the alternative finance market could be worth £4.4bn by 2015. Growing from £267m in 2012 to £1.7bn in 2014, it also found that equity crowdfunding was experiencing growth of 201 per cent per year, Speaking then, co-author of the report Liam Collins said: “While satisfaction levels were generally high among users of alternative finance and most had plans to re-use, our consumer poll showed that most individuals who had not used an alternative finance provider were quite sceptical and had concerns about how risky it was to put money through alternative finance sites. How big a barrier to growth this is will vary across the different alternative finance types but overcoming it is a big challenge facing the industry.” Brixton-based Output said it hopes to highlight the “plight of small businesses with regard to bank lending and business support”. Image: ShutterstockBy Hunter Ruthven
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