Crowdfunding - Canny Investments or Risky Business?

The Financial Times tells us that the alternative finance market grew by 91% over the last 12 months and is expected to top £1.6bn this year.   So, what is crowdfunding and why has it suddenly become so popular?  More importantly, is it a good idea?

Crowdfunding is a new way to finance businesses where a large number of people can invest small amounts of money in the projects of their choice.