Top 10 Best Platforms for Startup Crowdfunding

Crowdcube is a prominent equity crowdfunding platform that enables investors to acquire shares in early-stage and growth-focused businesses. Crowdcube provides access to potentially high-reward investment opportunities, it also involves substantial risks. This platform offers access to a diverse range of startups and early-stage companies across various sectors and permits investments starting from as little as £10. Investments made through Crowdcube are typically illiquid, meaning there is no readily available secondary market to sell shares. You should be prepared to hold their investments for an extended period, often several years, until an exit opportunity arises, such as a company sale or initial public offering. Crowdcube conducts due diligence on companies listed on its platform; however, the depth of this process may vary.
Crowdcube is authorized and regulated by the FCA in the UK, providing a level of oversight and investor protection. However, this does not eliminate the inherent risks associated with equity crowdfunding. Certain investments may qualify for tax reliefs, such as the EIS or SEIS.

Companisto offers a steady flow of investment opportunities, primarily in technology, healthcare, and consumer sectors. The platform caters to diverse investor preferences by featuring companies at different development stages, from early startups to growth-phase businesses. But it requires a careful and proactive approach. Additionally, the company fosters an active investor community through its online platform, enabling members to engage in discussions, share insights, and collaborate on investment opportunities.
For those who are adept at navigating the complexities of early-stage investments, Companisto can be a valuable tool for accessing unique and high-potential opportunities within the European market. However, try to approach the platform with a critical eye and a readiness to actively manage their involvement, ensuring they are comfortable with both the high risks and the potentially high rewards that come with investing on P2P platforms in early-stage ventures.
Companisto offers a secondary market that allows investors to buy and sell shares in startups outside of active funding rounds. It’s important to note that trading may be suspended during certain events, such as follow-on financing rounds or exits. To assist with this, Companisto provides a range of data points and company profiles on each listed opportunity. Information typically includes business models, financials, market assessments, and founder backgrounds. As with many equity crowdfunding platforms, there may be some variability in the level of detail across listings, and you may find value in conducting additional research or engaging directly with the startups for further insights.

Scramble distinguishes itself by concentrating on high-growth European consumer goods brands, particularly those committed to sustainability, eco-friendliness, and ethical practices. The brands featured on Scramble often align with emerging consumer trends like organic and cruelty-free products. One of Scramble’s most appealing aspects is its monthly investment rounds. This approach to investment opportunities provides regular access to a curated selection of brand.

A core feature of Scramble is its loan structure, divided into two distinct groups based on risk and security levels. Group A is designed for investors with a lower tolerance for risk and offers an annual return of up to 12.4%, secured by co-founder guarantees and a first-loss capital guarantee. These security measures provide additional protection, mitigating the risk of default and offering some assurance that invested capital is safeguarded. Group B, on the other hand, caters to higher-risk investors seeking potentially greater returns. Although it lacks the same security features as Group A, this group attracts investors who are willing to tolerate higher risk in exchange for the chance of larger financial gains. The dual structure reflects Scramble’s commitment to serving a diverse investor base, allowing individuals to select options aligned with their financial goals and risk profiles.

To enhance investor confidence, Scramble places a significant emphasis on transparency and investor protection. The platform incorporates several measures to protect data privacy, including advanced encryption to secure personal and financial information. Additionally, Scramble’s team actively curates brands for investment, thoroughly evaluating each company’s business model, growth potential, and ethical practices before listing them on the platform.

Republic Europe, formerly known as Seedrs, is an equity crowdfunding platform that enables individuals to invest in early-stage and growth businesses across Europe. In July 2024, Seedrs rebranded as Republic Europe following its acquisition by Republic, a U.S.-based investment platform. Despite the name change, Republic Europe continues to operate under the regulatory framework of the FCA in the UK, maintaining its commitment to investor protection and compliance. The platform now offers a more diverse array of investment opportunities, including access to U.S. markets.

Republic Europe employs a nominee structure, where the platform holds shares on behalf of investors. This arrangement simplifies the management of shareholder rights and communications between the company and its investors. The platform also conducts due diligence on businesses seeking funding to ensure that the information presented is fair, clear, and not misleading.

The platform offers a diverse range of investment opportunities, spanning various sectors such as technology, healthcare, and consumer goods. This variety allows to build a diversified portfolio aligned with your interests and risk tolerance. Additionally, Republic Europe provides access to Limited Partner (LP) funds with low minimum investment thresholds, enabling broader participation in venture capital opportunities.

Sowefund is a French equity crowdfunding platform established in 2014, specializing in venture capital investments. It enables individual investors to co-invest alongside professional funds in innovative startups, thereby democratizing access to venture capital and supporting innovation. The platform offers a user-friendly interface, allowing investments starting from €100, making it accessible to a broad audience. Investors can benefit from tax reductions ranging from 18% to 25% on their income tax, enhancing the attractiveness of their investments. Sowefund has facilitated over 100 crowdfunding campaigns since its inception, supporting numerous startups in their fundraising efforts. In 2023, the platform was acquired by the French venture capital firm Founders Future, aiming to enhance its professionalism and solidify its position as a leading co-investment platform.

A prominent theme across user experiences is Sowefund’s high level of customer service. The platform’s team is dedicated, responsive, and available to help address questions or concerns. The platform has also garnered attention for the quality and variety of the projects it offers. The companies listed are carefully vetted, presenting investors with opportunities that are not only promising but also diverse in scope.

In France, certain investments in startups and SMEs qualify for tax reductions, such as the “IR-PME” scheme, which allows for a reduction in income tax based on the amount invested. Additionally, the “JEI” (Jeune Entreprise Innovante) and “JEIR” (Jeune Entreprise Innovante et de Recherche) statuses offer further tax incentives for investments in young, innovative companies. However, there is no clarity and sufficiency of information provided regarding these tax benefits. For instance, there is a lack of transparency concerning the eligibility of certain investments for tax deductions, particularly distinguishing between investments in shares and bonds. Sowefund did not clearly specify whether an investment pertained to shares or bonds, which impacted the investor’s ability to benefit from tax deductions.

Sowefund has taken steps to improve the clarity of information provided to investors. The platform offers guides and resources to help investors understand the tax benefits associated with different types of investments. For example, their “Guide de la défiscalisation – Edition 2024” provides detailed insights into tax reduction opportunities linked to investments in French startups and SMEs.

Angels Den is a UK-based investment platform that connects early-stage businesses with angel investors. It has become one of Europe’s largest angel-led finance platforms, facilitating equity and debt financing for startups and SMEs. The platform provides investors with opportunities to invest in carefully selected startups, boasting a network of over 21,000 high-net-worth individuals. Angels Den reports that 92% of its funded companies since 2013 are still active. This high survival rate is significant, especially when compared to general startup statistics. In the context of angel investing, where failure rates are typically high—often cited as around 50-75% within the first few years. However, it’s important to interpret this number critically. While the survival rate is an indicator of business continuity, it does not equate to profitable exits or guarantee returns for investors. Startups can remain active for years without generating significant returns or achieving growth that benefits shareholders. The high activity rate doesn’t reflect the performance in terms of return on investment, nor does it provide insights into liquidity events such as acquisitions, mergers, or IPOs, which are the typical exit strategies for investors.

Another consideration is the platform’s fee structure. Once your pitch is accepted for fundraising, Angels Den charges a one-time onboarding fee of £349 plus VAT. Upon successfully raising funds through the platform, a success fee of 8.5% of the total investment amount is applied. This fee is payable in tranches as funds are received from investors. Angels Den does not charge performance or management fees, and all payments are settled directly between entrepreneurs and investors, eliminating payment processing fees.

This is a Dutch crowdfunding platform that facilitates financing for SMEs through loans, equity, and pre-sales campaigns. Primarily targets Dutch entrepreneurs and investors, fostering local business growth. The average loan campaign on CrowdAboutNow raises approximately €70,000, with repayment terms typically spanning three to four years. As with all investments, there are risks involved. For loan campaigns, the primary risk is the potential default by the borrowing company. In equity campaigns, the risk lies in the company’s performance, which may affect the value of the investment. Pre-sales campaigns carry the risk of product delays or changes.

The platform emphasizes community engagement, encouraging entrepreneurs to leverage their personal networks to secure funding. This approach often results in a significant portion of investments originating from the entrepreneur’s immediate circle. CrowdAboutNow offers opportunities to support local businesses with investments starting as low as €10. The platform’s focus is more on community involvement than on high financial returns. Interest rates are intentionally kept low, reflecting the platform’s mission to prioritize entrepreneurial support over investor profit.

NPEX, the Nederlandsche Participatie Exchange, enables to directly invest in Dutch SMEs by purchasing shares and bonds, providing a platform for both raising capital and trading securities. This diversification can provide exposure to different economic sectors and potential growth opportunities not available in the investor’s home country.
Additionally, investing in SMEs through NPEX allows investors to support entrepreneurial ventures and innovation within the Netherlands. NPEX operates under a Multilateral Trading Facility (MTF) license from the Netherlands Authority for the Financial Markets (AFM) and is under continuous supervision by both the AFM and De Nederlandsche Bank (DNB).

Crowdberry is a licensed investment platform based in Slovakia that enables private investors to directly invest in specific companies and real estate projects, primarily within the Czech Republic and Slovakia. Established in 2015, the platform has facilitated over €65 million in investments across more than 40 companies, contributing to the growth of local businesses and the domestic economy.

Crowdberry offers a diverse range of investment opportunities, including startups, SMEs, and real estate projects. Investments typically range from €0.1 million to €5 million, with the platform managing assets exceeding €100 million.

You can choose from various sectors such as sustainability, health and science, social causes, education, and sports. The platform operates on an equity investment model, allowing users to become co-owners of the companies or projects they support. Crowdberry charges 12% of the net return (after deducting the original investment) for managing the SPV. Registration and use of the Crowdberry platform are free of charge.