The regulation of crowdfunding

“Crowdfunding” involves one ‘crowd’ of individuals directly funding the activities of another ‘crowd’ of people or businesses through a single online platform by way of donation, loans or investment. It emerged in the UK in 2005 and has grown to more than £350m a year in response to both the lack of bank finance, and the desire for savers and investors to diversify and get a better return on their surplus funds.

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