|HOW BUSINESSES ARE USING CROWDFUNDING IN THEIR CSR STRATEGY|
Aruba, August 14, 2015 - Crowdfunding has democratised investing and made it more efficient. But the landscape has evolved significantly. Once dominated by platforms simply enabling people to make donations to causes, debt-based crowdfunding is now by far the largest subsector, and fashionable equity gets a lot of airtime. But despite less exposure these days, the original donation-based crowdfunding is advancing too. One of the most interesting developments is the growing relationship between crowdfunding and corporate social responsibility (CSR).
It’s still a tiny market, but growing numbers of businesses are considering crowdfunding in their CSR strategy. Crowdfunding “definitely offers a viable alternative” for companies looking to further their CSR,” says Peter Baeck, principal researcher at Nesta. Platforms enable firms to leverage the cash they’ve got and give in a more efficient way, he says. The fact that they are in direct contact with projects adds to this.