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Leading crowdfunding platform that helps businesses raise money from individuals.
CrowdCube is among the top leading investment platforms for start-ups.
StartEngine has helped over 500 companies raise capital that generated $450 million.
MicroVentures is a crowdfunding platform with a full-service investment bank providing to both accredited and non-accredited investors.
AngelList is a platform where entrepreneurs get early rounds of funding to grow their businesses.
Winwinner has raised over £23 million for businesses and helped entrepreneurs and investors find win-win situations.
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Crowdfunding is a way for businesses, charities, and individuals to raise capital. It is an alternative to traditional sources of private equity, like loans from banks. Generally, crowdfunding platforms invite many people to put up relatively small amounts perhaps in return for some equity, or special rewards.
There are three different types of crowdfunding for businesses, and you can see some benefits from investing your money:
Equity crowdfunding: Here investors receive equity in return for the money they invest. Their percentage of ownership depends on the amount they put into this business.
Rewards crowdfunding: As an investor in the business, you may receive a reward for supporting them. For example, if the company is going to sell gym clothes, they might give free supplies of it to their earliest supporters.
Loan crowdfunding: Peer-to-peer lending is a type of funding where you can lend money to businesses either via P2P platforms or directly with an associated bank. It’s usually less risky than loaning the money directly and more generous than what traditional lenders offer.
Investors can help in the growth of start-ups and early-growth companies with which they are passionate. With time, their investment may be worth a profit if the company grows and becomes more successful.
Investors can use equity crowdfunding to save on taxes. You can claim tax relief by investing through the Enterprise Investment Scheme and the Seed Enterprise Investment Scheme. The process is simple and quick, but you do need to meet certain criteria, such as keeping your investment for a set amount of time.
An accredited investor must meet certain income or net worth requirements to invest in certain ventures and non-accredited investors have no access to.
If a company does not meet its minimum funding goal, all funds will be refunded within 10 business days.
If a company has reached its maximum funding goal, you can submit an “indication of interest.” This is not an investment and does not guarantee a place in the offering but it’s a non-binding commitment that allows you to be put on a waitlist for any offerings that are oversubscribed, meaning they have raised more than their maximum funding goal.
Essentially, crowdfunding campaigns are available through Regulation Crowdfunding, which allows investors to cancel these investments up until 48 hours before the close of the campaign. If you do not cancel within the timeframe, your funds will be invested.