Crowdcube inks FSA authorisation as it looks to build on UK crowdfunding surge

Crowdcube has become the first regulated crowd-funding platform in the UK to give investors direct shares in businesses as part of its efforts to offer investors more protection.

The platform has been working with the Financial Services Authority (FSA) since December 2011 to come to an agreement.

To date Crowdcube has signed up 28,000 investors and orchestrated £5 million of investment into 36 businesses since its launch in February 2011.

Crowd-Funding has become a very popular way for SME’s and startups to raise relatively small amounts of Debt funding but now that the FSA has recognised this type of platform be prepared to see more companies offering equity in exchange from investment from a larger number of individuals.

Coupling Crowd-Funding with SEIS qualifying investments is a very good and tax efficient way of raising initial Equity capital of up to £250,000.

By David Yates on February 11, 2013   /   Blog Post, business, PE/VC   /   Leave a comment