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Equity Crowdfunding

[ˈɛkwɪti Crowdfunding]



Equity Crowdfunding is a form of Crowdfunding that allows smaller businesses to receive funding from a large population in return for shares in the company.

More detail:

Equity Crowdfunding is a form of Crowdfunding which allows a large amount of people to own a small share in the business they are investing in.

Smaller, younger businesses are more likely to undertake Equity Crowdfunding so it can be a risky investment. With modern platforms, it is now possible for more people to get involved in Equity Crowdfunding. But in certain cases, the opportunity can be only available to accredited investors.

If the company is young, investments might be eligible for tax-relief via the Enterprise Incentive Scheme or the Seed Enterprise Incentive Scheme (SEIS). This can make encourage investors as it can make the investment more tax-efficient.

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