Crowdfunding: Starting a business without a bank loan

Andrew Denham is founder of The Bicycle Academy in Frome, Somerset - a business which teaches people how to build their own bikes.

He started the business not through a bank loan, but through crowdfunding: the collective investment of private individuals - in this case, 183 people.

Depending on how much money they put into the business - it could be as little as £20 - investors were given anything from a t-shirt to a place on the academy's bike building course.

"We had six weeks within which we needed to raise £40,000 - we actually raised all of the money within six days," Mr Denham told Radio 4's In Business.

Here he gives his top tips for raising start-up capital through crowdfunding - read more on crowdfunding here.

Video production: Andy Brownstone

Listen to the full report on In Business on BBC Radio 4 on Thursday, 23 August at 20:30 BST or Sunday, 26 August at 21:30 BST.

Listen again via the Radio 4 website or World of Business download.