Soho based Unbound, the crowdfunding source for authors, has secured £1.2 million in seed funding.
The platform allows authors to pitch story ideas to readers in return for pledges.
The investment comes from seed investors Forward Investment Partners, DFJ Esprit and Cambridge Angels.
The funding will be used to increase its staff numbers, develop its website and build additional platforms.
It will also support Shaun Usher’s new book, Letters of Note which has raised £125,000 and been labelled as ‘book of the year’ by Stephen Fry.
Unbound allows new and established authors to pitch story ideas to their fans.
Readers are then able to offer financial donations in return for rewards.
This can range from the donor’s name being published in the back of the book, through to attending the launch party.
Changing the publishing model
The company started back in May 2011 with three founders aiming to change the traditional publishing model and allow readers to engage directly with their authors.
The startup now employs 14 members of staff and has since raised nearly £1 million in pledges for authors.
According to the startup, it takes three months on average to raise £15,000 from 500 supporters which allows for writing, design, editing and printing of the book.
Using this model, uniquely the author receives 50% of all profits rather than 5-10% through traditional publishing methods.