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What is equity crowdfunding?
A new way of raising capital for high growth businesses
Equity crowdfunding is a new way of raising capital for start-up and growing companies. The concept is simple - a large number of serious investors, “the crowd” invests smaller amounts of money to accumulate into an investment large enough to finance the growth of a start-up, early stage or established business.
Small efforts yield greater results...
Crowdfunding is based on the principle of “crowd sourcing”. Crowd sourcing is where a large number of people all put a little effort into reaching an end result. In Crowdfunding, a large number of people invest small amounts of money in order to reach the required investment target.
Equity crowdfunding - tax-efficient investment opportunities
Experienced angel investors, angel networks and early stage VCs have traditionally provided risk capital to start-ups and early stage businesses.
Now, online equity crowdfunding platforms have opened the early stage investment market place up to a wider audience of 'serious investors' or 'latent angel investors'.
The platforms provide investors with a range of tax-efficient investment opportunities designed to reduce downside risk and enhance potentail returns. Check out the Seed Enterprise Investment Scheme.
Want to find out more about tax-efficient investing? Click here.