This document discusses crowdfunding options for businesses at different stages, from seed funding to growth. It outlines Crowdcube's success in reducing fees and speeding up the funding process. The document also provides tips for what investors look for, such as a business plan, revenue, users, and team. Finally, it promotes SEIS/EIS tax relief programs and invites questions.
Rewards
+ great for product or social businesses (diff platforms) – pre-sales and creating a customer base, retain ownership of firm, big name brands with lots of exposure BUT
-BYOCrowd, easy to get lost, sending the rewards on time, no brand advocacy, need good rewards and a business that can offer them
Equity
+ marketing effect during/post and brand advocacy, UK wide reach, crowd due diligence, go for larger amounts and over fund, retain more ownership than traditional means and less likely for deal to fall through, more than money (angels & non-execs) diverse skill sets, follow on funding
-Give away ownership, not great for local businesses, need to have a scalable businesses with ROI potential and considering an exit, works best for businesses offering tax relief
Lending
+ Very quick and high success rates, great for all businesses regardless of sector or tax relief
-due diligence process is intense, only companies almost guaranteed to be able to service debt accepted, not great for start ups