While British negotiators are locked in last-minute talks with their European Union and Irish counterparts, trying to put together a Brexit deal that Prime Minister Theresa May might agree in Brussels, Reuters reports, a UK startup turns to crowdfunding after EU funding put on hold due to talk uncertainties, media confirm.
In particular, a UK startup, which is developing an app in the car insurance sector, has turned to crowdsourcing after European Union funds were put on hold as a direct result of Brexit uncertainty.
The company was preparing to launch with money coming from the European Investment Bank (EIB), but the funds are now on hold until the overall Brexit divorce bill is agreed. This has left a £650,000 shortfall, which the company is now raising through crowdfunding platform CrowdCube, with Investors getting shares in the company. After a week of crowdsourcing, the company has already raised more than £300,000 through the Crowdcube page.
Frank Speight, commercial director at Honcho, said the venture capitalist had agreed to fund the launch in the summer, but it was not able to go forward because it was “one of many” that was getting funds from the Joint European Resources for Micro to Medium Enterprises (Jeremie). He added:
It is frustrating and I don’t underestimate the challenge the government have but, in the meantime, the world doesn’t stop and we have to be innovative.
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