Blog

Redefining Equity Crowdfunding

Date 7th April 2016 //
Author James Codling and Paul Moravek, Co-Founders, VentureFounders
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The UK alternative finance market is the largest in Europe, with a rapidly growing value of £1.78bn; equity-based crowdfunding is one of the fastest growing sectors within this market, with a growth of 600% between 2012 and 2013. The sector had a market value of £78 million in 2014, at an average growth rate of 420%.

For investors, the incentives for equity crowdfunding are significant. Most generous is the Seed Enterprise Investment Scheme (SEIS), a government incentive scheme which stimulates entrepreneurship by offering tax breaks for investors. Through SEIS, investors in start-ups can receive an initial tax relief of 50% on investments up to £100,000 and Capital Gains Tax exemption for any gains on the SEIS shares. Should the investment fail, the government offers significant loss relief plus, after 2 years, investors receive 100% Inheritance Tax relief against the value of their shares.

VentureFounders firmly believe that all investors must understand the opportunities they are investing in. We make sure all the due diligence we carry out is available to our registered members.

Also, we believe that the role of crowdfunding shouldn’t end when the investment round is complete. VentureFounders creates long-lasting relationships with our investment businesses, monitoring their growth cycle, often taking a board observer seat, providing regular updates to shareholders and helping to maximise returns on their behalf.

For anyone considering equity crowdfunding it is important that platform they use know their entrepreneurs and investment opportunities well. VentureFounders pre-screens and carefully curates the investment opportunities presented on our site. We ensure that the businesses seeking funding have financials that stack up, a product with proven demand, a strong management team and a clear competitive advantage.

For further information on crowdfunding and VentureFounders, visit or @VFounders on Twitter.

Alternative business funding, traffic light, icon

Find your business
funding

£
Enter a funding amount between £500 and £50,000,000.
Please indicate what you need the funding for.
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