Crowdcube is an equity crowdfunding platform, which means they enable businesses to raise capital in return for equity in the business, from the general public. This model typically results in smaller investment amounts but from a larger pool of investors.
The platform enables businesses to upload their proposal to be presented to investors. Investors can then browse these proposals and decide on who to invest in, with as little as £10.
Crowdcube does not appear to charge investors any fees upon investing but there may be fees when selling your equity. Upon a successful raise, fees are charged to the business. These fees vary and it is worth checking with Crowdcube for an up to date schedule if you are planning a campaign with them.
It is also worth noting that many businesses on the platform are approved for tax relief via the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS). With EIS, investors can benefit from 30% tax relief on invested funds and 50% for SEIS. As with everything, there are always terms and conditions and we advise you read these prior to making any investment decisions.
As with all investments, the value of you investment may go down as well as up.
Crowdcube Capital Ltd is authorised and regulated by the Financial Conduct Authority (No. 650205).