One of the things I love about crowdfunding is that it can circumnavigate the risk averse and, as a result it can achieve greatness and can help to change the world. This week saw another Crowdcube crowdfund smash its target by £30,000 to raise £150,000 to make landmine disposal technology. The founders had originally tried going down the traditional investment route, but had constantly hit their heads against brick walls as the VC’s were either very cynical or risk-averse about investing in what the founders saw as life-saving and life-changing technology. For co-founder Arpana Gandh, it was important that they support charity workers, NGO’s and commercial organisations to make their jobs easier and safer through more effective and lower cost technology.
This is why crowdfunding can work so well – a group of people see an idea they love, and want to help to make it work – they’re not as concerned as a VC about getting a return, they just want to see it happen. As a result social and life-changing technology is more likely to be funded through this route without the immediate pressure of having to make a multi-fold return in the next 3 years. The irony is however, that now it has been funded, it probably will make a mulit-fold return anyway as there are, unfortunately, so many countries in need.
So, a big congratulations to both Disarmco, Crowdcube and all of their investors, the world will hopefully be a little bit of a better place as a result.