Equity Crowdfunding

A method of raising capital by offering small equity stakes in a company to a large number of individual investors through regulated online platforms such as Crowdcube or Seedrs.

Equity crowdfunding democratises access to startup investment and simultaneously creates a community of brand advocates among shareholders. A successful campaign also serves as a powerful public validation signal.

A founder raises £250,000 by offering 10% equity on Crowdcube to 400 individual investors averaging £625 each. Beyond the capital, she gains 400 shareholders who actively promote her brand and refer customers from genuine personal investment in her success.