U.K. Homegrown Crowdfunding Platforms Band Together To Create Self-Regulatory Body Without Kickstarter, Indiegogo

TechCrunch  | Natasha Lomas   March 15, 2013

UKCFA - U.K. Homegrown Crowdfunding Platforms Band Together To Create Self-Regulatory Body Without Kickstarter, IndiegogoIt’s not easy being a crowdfunding tiddler in a pond where sharks like Kickstarter and Indiegogo are known to swim. Which doubtless explains why a group of homegrown U.K. crowdfunding sites have banded together to launch a self-regulating trade body — called the UK Crowdfunding Association (UKCFA).

The 12 founder members are all relatively small and specialist, counting the likes of startup seed funding platform Seedrs and video games funding platform Gambitious among their number — which suggests the initiative is more about trying to attract attention, and grow some lobbying muscle (they will be “working with policymakers to help develop the right frameworks for crowdfunding”), rather than trying to achieve the impossible: impose order on the unrestricted Wild West of crowdfunding.

While neither Kickstarter nor Indiegogo were founded in the U.K., Kickstarter added U.K.-based projects to its platform last October and Indiegogo launched a U.K. site last December. So the UKCFA situation brings to mind the global daily deals trade association, launched last year, that still doesn’t count Groupon or LivingSocial among its members. Well meaning, but — to put it charitably — risking irrelevance.

Were Kickstarter and Indiegogo even approached to join UKCFA? “No, neither have been approached so far but it is early days,” a spokesman told TechCrunch. “At present the UKCFA is representing only UK-based platforms. That said we intend to liaise with other associations and companies in the EU and globally as each regulatory zone presents its own challenges for this sector.”

It’s true that never has the phrase ‘buyer beware’ been more appropriate than in this era of individuals donating money to other people they probably don’t know and likely won’t ever meet — just because those strangers asked nicely. That crowdfunding project you backed to make a sassy new TV series about your favourite video games? Don’t be surprised if they actually spend your cash on beer & pretzels. Them’s the breaks.

UKCFA isn’t able to help with that. It can’t make platforms force project creators to do what they claimed they would with your hard-earned cash. The only order it can impose is on the platform businesses themselves — and only 12 small U.K.-based platforms at that.

It has come up with a code of conduct for members to ensure a minimum amount of sawdust on the floor of this little Wild West bar. This consists of 10 principles to which UKCFA members have to adhere to remain a member (or be run outta town UKCFA). Complying members get to display a badge on their website to signal they are compliant.

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