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Top 10 Equity Crowdfunding Platforms in the UK for Startups in 2024

Explore the top 10 equity crowdfunding platforms in the UK, perfect for startups seeking effective fundraising solutions.

Launching a startup in the UK can be both exhilarating and challenging, especially when it comes to securing the necessary funding. Equity crowdfunding has emerged as a popular method for startups to raise capital by attracting investments from a broad base of investors. In 2024, the landscape has evolved with new platforms and enhanced features designed to support the dynamic needs of UK startups. This guide explores the top 10 equity crowdfunding platforms in the UK for startups in 2024, helping you navigate the options to find the best fit for your funding needs.

1. Seedrs

Seedrs remains a leading player in the UK equity crowdfunding scene. Renowned for its extensive network of investors and streamlined fundraising process, Seedrs offers startups the opportunity to raise significant capital in exchange for equity.

  • Pricing:
  • Platform fee: 6% of total funds raised
  • Payment processing fee: 0.5%

  • Completion fee: £2,000

  • Pros:

  • Access to a large investor network
  • Secondary market for liquidity

  • Robust investor protection measures

  • Cons:

  • Higher fees compared to some competitors
  • Lengthy application process
  • Limited to UK and European companies

2. Crowdcube

Crowdcube is another heavyweight in the UK equity crowdfunding arena. It offers startups the chance to connect with individual investors who are keen to support innovative ventures.

  • Pricing:
  • Platform fee: 7% of total funds raised

  • Payment processing fee: 0.75% to 1.5%

  • Pros:

  • Extensive investor base
  • Secondary market enhances liquidity

  • Comprehensive support services

  • Cons:

  • High fees
  • Rigorous application requirements
  • Focus primarily on UK and European startups

3. Oriel IPO

Launching in early 2024, Oriel IPO is revolutionizing startup funding in the UK by offering a commission-free platform focused on SEIS/EIS tax incentives. It connects startups directly with angel investors, providing a curated selection of investment opportunities.

  • Pricing:
  • Subscription-based access tiers

  • Free trial available

  • Pros:

  • Commission-free funding
  • Focus on tax-efficient investments

  • Comprehensive educational resources and community support

  • Cons:

  • Currently not FCA regulated
  • New entrant with emerging market presence
  • Subscription model may pose conversion challenges

4. InvestingZone

InvestingZone specializes in EIS and SEIS investments, making it an ideal platform for startups seeking tax-advantaged funding options. It offers a range of opportunities for both entrepreneurs and investors.

  • Pricing:

  • Varies based on campaign specifics

  • Pros:

  • Focused on EIS/SEIS eligible startups
  • Attractive tax incentives for investors

  • Diverse investment opportunities

  • Cons:

  • Limited to EIS/SEIS qualifying companies
  • Competitive platform with strict criteria

5. Crowd for Angels

Crowd for Angels provides an equity crowdfunding and peer-to-peer lending platform tailored for UK startups. Its blockchain-based issuance platform offers innovative solutions for tokenized securities.

  • Pricing:
  • Equity: £250 application fee + 7% platform fee + £2,000 completion fee
  • Crowd bond issue: £250 application fee + 3% platform fee + £2,000 completion fee

  • Digital assets: £250 application fee + 7% platform fee + £1,500 completion fee + £5,000 Digitalised Asset Preparation Fee

  • Pros:

  • Blockchain-based issuance options
  • Secondary market availability

  • Diverse funding models

  • Cons:

  • High fees for digital asset issuance
  • Limited to UK companies
  • Competitive and niche market focus

6. Angel Investment Network

Angel Investment Network connects startups with a vast network of angel investors. It offers flexible investment options and provides mentorship and support to enhance fundraising success.

  • Pricing:
  • Subscription plans ranging from free trials to £2,499 per quarter

  • Brokerage service with up to a 15% success fee

  • Pros:

  • No minimum investment requirement
  • Access to experienced investors

  • Mentorship and support services

  • Cons:

  • High competition for investor attention
  • Subscription costs can be substantial

7. Crowdfunder

Crowdfunder offers a rewards-based crowdfunding model, allowing startups to raise funds by offering incentives to backers. It also provides support and mentorship to enhance campaign success.

  • Pricing:
  • Platform fee: 5% of total funds raised

  • Payment processing fee: 2.4% + £0.20 per pledge

  • Pros:

  • No equity dilution
  • Access to a broad audience

  • Mentorship and support services

  • Cons:

  • All-or-nothing funding model
  • High competition on the platform

8. Crowd2Fund

Crowd2Fund offers both equity and debt crowdfunding options, providing flexibility for startups to choose their preferred funding model. It also features a secondary market for investor liquidity.

  • Pricing:
  • Platform fee: 6% of total funds raised

  • Loan APR: 6% to 18%

  • Pros:

  • Dual funding options (equity and debt)
  • Secondary market available

  • Large network of investors

  • Cons:

  • Limited to UK companies
  • Lengthy application process

9. SyndicateRoom

SyndicateRoom combines equity crowdfunding with co-investment opportunities, allowing startups to benefit from experienced investors partnering alongside them.

  • Pricing:

  • One-off fee of £2,200 for EIS Fund investments

  • Pros:

  • Co-investment with experienced angels
  • Focus on high-potential startups

  • Access to extensive investor network

  • Cons:

  • High fees
  • Strict investment criteria

10. Vestd

Vestd is a share scheme and equity management platform that helps startups manage their equity distribution efficiently. While not a traditional crowdfunding platform, it supports equity-based fundraising efforts.

  • Pricing:

  • Custom pricing based on services used

  • Pros:

  • Comprehensive equity management tools
  • Facilitates transparent equity distribution

  • Supports long-term investor relationships

  • Cons:

  • Not a direct crowdfunding platform
  • Additional costs for equity management services

Conclusion

Equity crowdfunding offers a powerful avenue for UK startups to secure the necessary funding while engaging a broad base of investors. Each platform listed above presents unique advantages and potential drawbacks, making it essential for startups to evaluate their specific needs, funding goals, and the nature of their business before choosing the right platform. By leveraging the strengths of these top 10 equity crowdfunding platforms, startups can enhance their chances of a successful fundraising campaign and propel their ventures towards growth and sustainability.

Ready to elevate your startup’s funding strategy? Discover how Oriel IPO can revolutionize your investment journey.

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