Crowdcube

Crowdcube is a UK-based online crowdfunding platform that specializes in equity crowdfunding for early-stage companies. It was launched in 2011 by Darren Westlake and Luke Lang in London. The platform allows businesses to raise capital by offering equity stakes to a broad community of investors, ranging from retail investors to angel groups.

How it works: Founders create a campaign page detailing the business, financials, and the amount sought. Campaigns set a funding target and the terms of the equity offered. Investors can review the pitches, perform due diligence, and place commitments. If the campaign reaches its target within the agreed timeframe, the investment is processed and shares are issued; if not, funds are returned to investors. Crowdcube generally charges a success fee on funds raised and may also charge administration fees; the exact terms are set out in the campaign agreement.

Regulation and protections: Crowdcube operates under the UK regulatory framework for crowdfunding platforms, requiring risk disclosures and investor suitability checks. The platform is subject to FCA rules governing investment-based crowdfunding and provides clear disclosures about risks and liquidity.

Impact: Crowdcube has played a significant role in popularizing access to early-stage investment and has funded campaigns across various sectors.

See also: Seedrs, UK equity crowdfunding, crowdfunding.