UKIE calls for relaxed crowdfunding control


UK trade association UKIE has called on government to relax regulation on crowdfunding to improve access to finance for independent developers.

Currently, UK legislation and regulation forbids return-based investment, meaning UK developers could not raise funds for a project and promise investors a share of the sales proceeds. It's designed to prevent investors unwittingly getting sucked in to pyramid or Ponzi schemes, but UKIE believes the rise of crowdfunding means a lighter touch is required.

In its report, the full version of which is available from the source link below, UKIE sets out several recommendations to government on how the current legal and regulatory framework should be updated. Crowdfunding, it argues, would not just benefit game developers, but creative businesses across the nation.

UKIE chief executive Dr Jo Twist said: "Having Double Fine's Kickstarter project raise over $1.8 million has shown the huge potential of crowdfunding to benefit games and interactive entertainment businesses.

"We have produced UKIE's report as part of our pre-budget submission to government to outline exactly what needs to be done for this to be possible. We'll be working with government over the next few weeks to push for inclusion of our recommendations in the up and coming budget."