Equity Crowdfunding

List your business on an authorised online platform and allow members of the public to buy shares in it.

What is equity crowdfunding?

Equity crowdfunding can help your business raise funding from a number of investors, in a regulated way. You list on an online platform that allows investors and members of the public to buy shares in your business.

An equity crowdfunding platform will assess your business, and the associated documentation you provide, to make sure it complies with its requirements. Some platforms will also help you choose the timeframe or amount of investment you ask for.

Every crowdfunding platform is different. Some will manage your communication with shareholders, while others offer business advice. You should always speak to the platform about its services and specialties before you commit to listing.

What’s the difference between equity crowdfunding and peer-to-peer (P2P) lending?

While equity crowdfunding offers investors a small share of your business in return for money, peer-to-peer (P2P) lenders loan money to your business in return for a fixed return over a fixed period.

People often confuse the two, but there are important differences. Each has different benefits and suit companies at different stages of their growth. You should consult a qualified financial adviser if you are unsure about the options available to you.