The 5 Best Equity Crowdfunding Platforms in 2022 (UK)
Ever wanted to be involved in the funding of new start-ups?
Equity crowdfunding allow retail investors to participate in funding startups. something which has traditionally been limited to a select few. In the last few years, the concept of peer-to-peer fundraising has gained a lot of attention. and consequently new platforms are frequently being developed. Equity crowdfunding platforms are constantly evolving and offering new opportunities to retail investors.
What is equity crowdfunding?
Crowdfunding is the practice of raising funds from the public, either online or offline. The concept is based on the premise that individuals/crowds can generate capital to fund an idea, a person or a cause they believe in, as long as they can reach a defined goal. Typically, the more money raised, the better the chances of success.
This offers retail investors the chance to invest in startups that could potentially become huge. Image investing in a company like Tesla in its early days. However, be aware that there is risk involved by doing this. It's possible that the companies could fail or that they never go public limiting your ability to gain anything in return for your investment.
These sites are all web-based crowdfunding platforms that connect companies and investors through a crowdfunding marketplace. This means you don’t need to create an individual business account and you don’t need to use a broker or investment adviser to find and fund your own deals.
In order to save you time and effort I have created a list of some of the best equity crowdfunding sites currently available.
Crowdcube
Crowdcube offers investors the opportunity to choose from a wide range of startup, growth and venture-backed businesses with potential to deliver significant returns. Its portfolio is constantly expanding, giving you the opportunity to get a head start investing in potentially high growth businesses.
Crowdcube has been around for a few years now and is a well established business. It has a good reputation and an established business model. As most seed stage businesses fail, many of Crowdcube’s seed stage businesses have seen a high success rate of around 60% in raising funds, which makes it an attractive platform to consider.
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