What is equity crowdfunding?

February 13, 2020
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Crowdfunding is raising finance from a large number of people (aka the ‘crowd’) for a relatively small amount of money each. It is a way to finance companies, projects or ventures and uses online platforms to access thousands of potential funders. There are a few different crowdfunding models, including equity-based, reward-based, donation-based and lending-based. 

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With the launch of our app on the horizon, we have decided the time is right to start raising money through crowdfunding to help fuel our launch. We are raising money through the Equity Crowdfunding model.

How does equity crowdfunding work?

Equity crowdfunding is asking the crowd for money in exchange for shares or a small stake in the company, usually an early-stage startup not listed on a stock market. In the past, only venture capitalists, angel investors and wealthy individuals had the opportunities to invest in startups. Equity crowdfunding has opened up investment possibilities to a much larger group of people.

It works through a crowdfunding website, where the crowd can find companies to invest their money in shares or a small stake in the company. There are a few equity-based platforms available, we are funding via Seedrs

Our equity crowdfunding campaign

We are raising £600,000. While the cap on how much you can invest will vary, with us, you’ll have the opportunity to invest from as little as £10. That said the amount of the company you will be able to own will be proportionate to the level of investment you make. If we do not reach our intended target by the end of the deadline, investing in that round is no longer available and your money is returned in full. 

Equity investments are a chance for people to stand by what they’re passionate about and want to be apart of as you’re investing in a company’s growth. They’re made in the hope the company goes on to make an ‘exit’ at a higher value than when you invested and you make a profit. Investments of this nature do carry risks to your capital.

Did someone say tax relief?

Equity crowdfunding has tax relief advantages for eligible investors to offset some of the risk taken with investing in early-stage startups. The UK government offers The Enterprise Investment Scheme (EIS) and we are registered. You can find out more information on the scheme here.

Interested?

We’ll be live on Seedrs soon – register your interest here.

If you have any questions please email us on crowdfunding@quintech.io

When investing, your capital is at risk.

 

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