Introduction
Equity crowdfunding has come a long way since the first platforms popped up in the early 2000s. It’s now a well-trodden path for startups and scaleups hunting for capital. But 2024 saw a notable dip in deal numbers—297 rounds, the lowest since 2014, down from a peak of 569 in 2021. Hard to believe, right? Yet the downturn mirrors the post-pandemic investment slump across all asset classes.
Enter the EIS crowdfunding platform. These platforms lean on the UK’s Enterprise Investment Scheme (EIS) to entice investors with tax breaks. They’re meant to be the bridge between ambitious founders and people keen to back them. But not all platforms are created equal. Some charge hefty commissions. Others throw endless offerings at you, making it hard to separate the wheat from the chaff.
In this article, we’ll:
– Unpack how an EIS crowdfunding platform works.
– Explore key UK equity crowdfunding trends in 2024.
– Compare legacy players like Seedrs and Crowdcube with Oriel IPO.
– Show how Oriel IPO’s commission-free, curated approach can help you invest or fundraise with confidence.
What Is an EIS Crowdfunding Platform?
Put simply, an EIS crowdfunding platform is a digital marketplace that lets the public invest in private companies under the UK’s Enterprise Investment Scheme. The EIS grants:
– Up to 30% income tax relief on investments.
– Capital Gains Tax exemption if you hold shares for at least three years.
– Loss relief if a startup doesn’t make it.
That’s why everyday investors are no longer shut out. Instead of waiting for a friend-of-a-friend introduction, you can browse companies online, check eligibility, and back pitches starting from a few hundred pounds.
The key difference between equity platforms and donation sites like Kickstarter? Here you receive equity—real shares in a company. And with an EIS crowdfunding platform, you get HMRC-backed incentives.
For more details on the schemes, see the official UK Government overview: https://www.gov.uk/government/collections/seis-and-eis.
Trends in UK Equity Crowdfunding in 2024
Deal Numbers and Funding Values
2021 felt like the golden age of crowdfunding—£773 million raised across 569 rounds. Two years on, and 2024 saw just £324 million. Ouch.
Reasons? Higher inflation, cost-of-living pressures and risk-averse sentiment among retail investors. Yet, pockets of resilience remain. Certain niches—green tech, consumer goods—still attract a crowd.
Shifting Company Stages
Interestingly, the median round size has crept up. In 2024 it was about £500k, compared to £1.72 million for VC-backed rounds.
Seed-stage rounds used to dominate, but now 56% of crowdfunded companies are at venture stages, up from 43% in 2014. Crowdfunding’s evolving. It’s no longer just the “first cheque in” for fledgling outfits.
Sector and Geographic Breakdown
Crowdfunded businesses lean heavily into B2C:
– 76% target consumers.
– Only 41% go after other businesses.
– Food & drink startups make up 9% of crowdfunded deals.
Regionally, London grabs half of the action—51% of deals. The South East follows with 10%. Up North? A modest 8%. Very much in line with VC, where London holds 50% of deals and the North about 10%.
Why an EIS Crowdfunding Platform Matters
Here’s the thing: early-stage investment is risky. Many investors shy away. An EIS crowdfunding platform does three vital jobs:
-
Tax Incentives
The EIS sweetens the pot. Who doesn’t like a slice of tax relief? -
Democratisation
Retail investors get seat at the table. No more “I only invest if I know your mum.” -
Streamlined Process
Digital portals handle due diligence, payment and share allocation. You click, pony up, and leave the paperwork to them.
But platform quality varies. Some charge up to 7.5% commission on raises. Others bury you under a sea of unvetted pitches.
Oriel IPO vs Established Platforms
Most of us know Seedrs and Crowdcube. They’ve built massive communities and offer expert resources. But they also:
- Take commissions on funds raised.
- List every pitch, making discovery a needle-in-a-haystack exercise.
- Rely on one-off funding fees.
Oriel IPO takes a different tack:
-
Commission-Free Model
No slice of your raise. Startups pay a transparent subscription fee instead. You keep more capital to grow. -
Curated Opportunities
Every business is vetted for EIS eligibility. No random gimmicks. Only genuine growth prospects. -
Educational Resources
Guides, webinars and articles on SEIS/EIS. Investors and founders get clarity on tax rules and best practices. -
Subscription Fees over Transaction Fees
Stable, predictable costs for startups. No surprise charges cropping up when you close your round.
You still get the hallmarks of a top-tier EIS crowdfunding platform—tax relief, easy onboarding, secure share issuance—minus the commission drag.
How Oriel IPO Elevates Your Experience
Imagine slicing through clutter. You land on Oriel IPO and see a handful of well-vetted deals. Each company profile clearly states:
- EIS/tax status.
- Investment milestones.
- Growth metrics.
No fluff. No filler. Just facts.
Plus, you can attend live webinars to grill founders. Or dive into step-by-step guides on structuring an EIS round. It’s like having an in-house adviser—without the hefty hourly rate.
This focus on curation and education is rare. It means you spend less time wading through dead-end pitches and more time making informed choices.
Practical Steps to Get Started
Ready to dive in? Here’s how:
- Sign up for a free trial.
- Browse curated EIS fundraising rounds.
- Join a webinar on SEIS/EIS basics.
- Make your first investment from £100.
- Track progress via real-time dashboards.
It’s a breeze. And if you’re a founder, the process is just as slick:
- Submit your business plan.
- Get vetted for EIS eligibility.
- Launch your raise with zero commission.
- Access investor education tools to boost confidence.
Looking Ahead: The Future of Equity Crowdfunding
The market will rebound. Investors will hunt bargains. And platforms that deliver clarity, cost-efficiency and curated deals will win. Oriel IPO is built for that future.
By forging partnerships with advisory networks, rolling out analytics tools and refining its subscription model, Oriel IPO aims to capture more market share. All while staying true to its commission-free, tax-efficient ethos.
Conclusion
2024 was a reality check for UK equity crowdfunding. Deal volumes dipped. But the shift toward later-stage rounds and specialised sectors shows resilience. If you want a lean, transparent and genuinely tax-focused approach to private investing, it’s time to consider Oriel IPO’s EIS crowdfunding platform.
Forget buried fees and endless listings. Embrace a curated, commission-free ecosystem that makes early-stage investing straightforward.
