Tech companies aren’t only innovative in their business ideas; increasingly, they’re getting innovative in how to fund business ventures. We saw this with Initial Coin Offerings, and now a number of companies are turning towards crowdfunding for finance.

Honcho, creates a “reverse-auction marketplace” where insurance companies bid for clients. The company set itself a £650,000 funding target, which it aimed to achieve through crowdfunding. They surpassed this within 9 days, reaching a final amount of £850,000.

Startup InMyBag, has also gone down the crowdfunding route, financing their high speed, gadget insurance. Within the past year, they’ve reached 66% of their target funding, over £300,000.

So why are companies choosing crowdfunding as a source of funding? Honcho turned to crowdfunding after losing EU funding that they were reliant upon. Others may want an injection of Capital, without becoming tied to investors, or having to mould to investors’ wishes. For many, it represents a community based, decentralised financial system that allows them to keep their autonomy in the day to day functioning of their business.

For more information, please contact Nick Pester.