Crowdfunding and the Democratization of Finance

184 Pages·2021·9.035 MB·English

by  Mark Davis, Bruce Davis

“More than just a book about crowdfunding, this is a
valuable contribution to the debate about democratizing the
economy. Accessible and thought- provoking, it puts questions of
power and control over money where they belong – at the
heart of the analysis.”
Christine Berry, author and Director of IPPR North
“Change which gives all humans dignity doesn’t come from
words alone, but from institutions that give life to our collective
needs and strengths. We can only finance the future we want if
financial systems themselves honour a more equal, democratic and
sustainable society. This incredible and timely book shows us how.”
Neal Lawson, author and Director of Compass

MARK DAVIS AND BRUCE DAVIS
CROWDFUNDING AND

THE DEMOCRATIZATION
OF FINANCE
First published in Great Britain in 2022 by

Bristol University Press
University of Bristol
1– 9 Old Park Hill
Bristol
BS2 8BB
UK
t: [phone]
e: bup- [email protected]

Details of international sales and distribution partners are available at
bristoluniversitypress.co.uk

© Bristol University Press 2022

British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library

ISBN 978- 1-5 292- 1673- 8 hardcover
ISBN 978- 1-5 292- 1674- 5 ePub
ISBN 978- 1-5 292- 1675- 2 ePdf

The right of Mark Davis and Bruce Davis to be identified as authors of this work has been
asserted by them in accordance with the Copyright, Designs and Patents Act 1988.

All rights reserved: no part of this publication may be reproduced, stored in a retrieval system,
or transmitted in any form or by any means, electronic, mechanical, photocopying, recording,
or otherwise without the prior permission of Bristol University Press.

Every reasonable effort has been made to obtain permission to reproduce copyrighted material.
If, however, anyone knows of an oversight, please contact the publisher.

The statements and opinions contained within this publication are solely those of the authors
and not of the University of Bristol or Bristol University Press. The University of Bristol and
Bristol University Press disclaim responsibility for any injury to persons
or property resulting from any material published in this publication.

Bristol University Press works to counter discrimination on grounds of
gender, race, disability, age and sexuality.

Cover design: Bristol University Press
Front cover image: Jim Le Fevre
Bristol University Press uses environmentally responsible print partners.
Printed in Great Britain by CPI Group (UK) Ltd, Croydon, CR0 4YY
For Zygmunt

who started it all

Contents

About the Authors viii
Acknowledgements x
Preface xiv
one The Crisis of Finance 1
two What is Crowdfunding? 20
three Democratic Finance, Then and Now 48
four The Destination of Money 77
five Futures of Democratic Finance 102
Conclusion: The Change in Your Pocket 129
Notes 137
References 146
Index 155
VII
About the Authors

Mark Davis is Associate Professor of Sociology at the
University of Leeds, UK, where he founded the Bauman
Institute in 2010. Supported by grants from the European
Commission (EC) and UK Research and Innovation (UKRI),
Mark’s work argues that social relations shape how we spend,
borrow, save and invest, with implications for policy and
practice. To date, his research has improved investor protec-
tion in UK crowdfunding markets; developed new prosumer
business models and innovative finance options for Europe’s
green energy transition; and, with Abundance, co- created
Community Municipal Investments (CMIs) to help finance
local net zero projects. Mark is an expert evaluator for the EC’s
Marie Skłodowska- Curie Actions programme, a member of
Friends Provident Foundation’s programme advisory group,
and sits on the Editorial Board of the British Sociological
Association’s journal, Sociology.
Bruce Davis is Co- founder and Joint Managing Director of
Abundance Investment, the world’s first regulated investment-
based crowdfunding platform, which is focused on green
and social investments. Bruce has worked as an ethnographic
researcher and consultant to a number of financial services
companies and was part of the creative team behind the launch
of the first peer- to- peer (P2P) lending service, Zopa. Bruce
has also been involved in the development of a number of
important regulatory and legislative innovations to support
crowdfunding, including the Innovative Finance ISA (IFISA).
He is a member of the UK Government’s Green Finance
Taskforce, a founding director of the UK Crowdfunding
Association (UKCFA), a senior fellow of the Finance
Innovation Lab and Visiting Research Fellow at the Bauman
Institute, University of Leeds, UK.
VIII
ABoUT ThE AUThoRS
***
Since we are asked this question a lot, allow us to confirm for
the reader at the outset that we are not related.
Ix