Crowdcube specializes in equity crowdfunding, enabling investors to buy shares in startups and early-stage businesses. It allows investments from as little as £10/€10 and offers tax relief schemes such as the Enterprise Investment Scheme (EIS). Crowdcube’s community has over a million investors who have collectively invested more than £1 billion.
Key numbers
Who can invest?
How it works
Anyone aged 18 or older can invest in Crowdcube. You need to complete the registration process, agree to the terms and conditions, and classify yourself as either a high net worth investor, sophisticated investor, or restricted investor according to FCA rules. Investments are available only in jurisdictions where it is lawful to do so.
Investor Questionnaire
During registration, you must complete an Investor Assessment Questionnaire. The quiz comply with FCA regulations and ensures you are well-informed before making any investment decisions.
- Specialisation: Equity crowdfunding platform. They also offer mini-bonds as a form of debt investment.
- Minimum investment amount: £10 or €10
- Currencies supported: €, £
- Foundation year: 2011
- Commission: Investment fee 2.49%, success fee 5%
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Instruction:
Investment Opportunities
Crowdcube offers multiple investment options:
Equity Investments: These are shares in startup, early-stage, and growth companies. Investments start from as low as £10, making it accessible to a broad audience. Equity investments are high-risk but offer the potential for substantial returns if the business succeeds.
Venture Fund: Managed by a professional investment committee, this option allows investors to build a diversified portfolio of up to 10 businesses with a minimum investment of £2,500.
Mini-Bonds: These provide a fixed income of up to 8% interest, with minimum investments of £500. Mini-bonds are typically offered by more established businesses and still carry inherent risks
How to Invest
Investing on Crowdcube is straightforward. Browse the platform to find pitches that resonate with your interests. Each pitch includes detailed information about the business plan, market forecasts, and often a video presentation by the project team. If the project meets its funding target, you gain equity; if it fails, you receive a full refund.
Business Stages
Crowdcube supports businesses at various stages of their growth journey:
Seed Stage: This is the initial phase where businesses are just starting out. Seed funding typically goes towards market research, product development, and initial marketing efforts. Companies at this stage are often refining their business models and preparing to launch their products or services.
Early Stage: Businesses in the early stage have usually launched their products or services and are beginning to generate revenue. However, they still need significant capital to scale operations, expand their market presence, and further develop their offerings.
Growth Stage: Companies at the growth stage are well-established with a proven business model and steady revenue streams. They seek funding to expand their market reach, enter new markets, and scale operations significantly. This stage focuses on accelerating growth and increasing market share.
Performance and Returns
There are two primary avenues for returns:
Selling Shares: As the business grows, there may be opportunities to sell shares at a higher value during events like stock market listings or acquisitions.
Dividends: Profitable companies may distribute dividends to shareholders. However, these are not guaranteed and depend on the company’s performance.
Contact
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