Crowdcube Review

crowdcube-logoSince the launch in February 2011, the company has since raised millions of pounds of investment to boost UK businesses. The Crowdcube online platform gives entrepreneurs to showcase their potential as an investment opportunity to private investors in return for equity.

Investors are given the added advantage of professional due diligence by Crowdcube; all finance seekers are required to present detailed business plans giving three-year financial projections. The platform enables investors to build a diversified portfolio through a number of different business sectors.

The company regulated by FCA and with most of the investment opportunities coming from businesses who qualify for SEIS and EIS Tax Incentives, the majority of investors are derived from “angel and crowdfunding.”

What type of funding does Crowdcube provide?

Highlights

requirments_icon1Loan Amount

£10,000 – £150,000

Terms

To get your Pitch live depends on Investment Readiness and takes a few days to a couple of weeks.

Fund Received

To reach Target Amount takes up to 30 days.

What do I need in order to qualify for funding?

1) Register as a Crowdcube Member

2) Registered UK Limited Company [NOT a Sole Trader or an LLP]

3) Are NOT seeking funds for the following types of business:

  • Property Development
  • Anything of sexual nature
  • Gambling or Betting
  • Theatrical Productions or Film Making
  • Anything to do with e-cigarettes

4) Business Plan meets Crowdcube guidelines

5) Financial Forecast meets Crowdcube guidelines

6) Qualify for EIS or SEIS Tax Relief [Early inquiry advisable: non-qualification means unlikely investor interest]

How do I apply to get funding?

To apply for an investment, the business must start a pitch on Crowdcube’s online platform, where the applicant may detail the amount they wish to raise and invest in the business, as well as the equity offered and the percentage share they are offering in return for reaching the target amount of money. The business owners may then promote this pitch to various investors.

What is the process to receive funding?

Investors may invest money in the applicant’s pitch within a period of 60 days. Investors may provide a minimum of £10, although larger amounts are acceptable as well.

Find the right funding for your business

Does Crowdcube Charge a Fee?

There no fee/charge to list/pitch a business on Crowdcube.
Crowdcube will deduct a 7% Success Fee (excl. VAT) from the awarded target amount.

If Target is not reached- then what?

The pitch has 30 days to reach Funding Target. Crowdcube reserve the right to extend for further time. The pitch may be canceled at the discretion of Crowdcube if there is no investor interest.
The entrepreneur is notified by email of cancellation, and there will be no fees charged.

Raising more than Target Amount

If the entrepreneur reaches the first target, Crowdcube allows entrepreneurs to set the second.
It requires further equity being released by the entrepreneur company.
“Overfunding” may continue until the second target reached or completion of Pitch duration.

Funding Target reached, now what?

Crowdcube will guide you, once you have reached your funding target, through some procedures.

Is Crowdcube regulated?

Crowdcube Capital Ltd is authorized, and regulated by the Financial Conduct Authority (No. 650205).