The Rise (and Dip) of UK Equity Crowdfunding: Data Highlights
Equity crowdfunding has come a long way since 2011’s humble eight announced rounds. Fast forward to 2021 and we saw a whopping 569 rounds fuelled by everyday investors. Then reality hit. By 2024, it dipped to 297 rounds—the lowest since 2014.
Numbers matter:
- 2021: £773 million raised.
- 2024: £324 million raised.
- Participant growth soared, then cooled. Macro headwinds—higher living costs and inflation—played their part.
Yet the story isn’t just about totals. It’s about who’s investing and where. Retail investors have democratised early-stage equity. They back ventures from artisan coffee shops to cleantech innovators. It’s messy. It’s exciting. And it’s changing.
Demystifying Commission-Free Equity Investment
“Commission-free equity investment”—sounds dreamy, right? No more surprise fees carved from your raise. No percentage sliced off your founders’ pot. Instead:
- A simple subscription fee.
- Transparent pricing.
- Startups keep more of their capital.
- Investors enjoy cleaner terms.
Think of it like a gym membership versus pay-per-visit. You sign up once, you turn up whenever. No hidden extras. That’s exactly the model Oriel IPO champions. You get access to curated SEIS & EIS deals without worrying about a cut each time someone pledges.
And yes, you still get quality deals. Because zero commission doesn’t mean zero vetting.
SEIS & EIS: Your Secret Weapons
Tax incentives light the path for early-stage investors. You might’ve heard the acronyms—SEIS and EIS—but here’s the lowdown:
- SEIS (Seed Enterprise Investment Scheme)
- Up to 50% income tax relief on investments.
- £100,000 annual investment allowance.
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Capital gains exemption on qualifying gains.
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EIS (Enterprise Investment Scheme)
- Up to 30% income tax relief.
- £1 million annual investment allowance (up to £2 million in knowledge-intensive companies).
- Loss relief and capital gains deferral.
Put simply, if you invest £10,000 under SEIS, you could slash your tax bill by £5,000. Voilà. Suddenly that artisan coffee roaster seems within reach.
Platforms like Crowdcube and Seedrs let you play, but they charge fees that eat into your relief. With a commission-free equity investment approach, you maximise every pound of benefit.
Trends Shaping UK Equity Crowdfunding in 2024
A few patterns stand out:
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Early versus later stages
– Seed-stage rounds dropped from 46% (2014–2023) to 29% in 2024.
– Venture-stage rounds jumped to 56%.
Crowdfunding is catching up with VCs. Higher rounds. Bigger players. -
Sector focus
– B2C leads at 76% of deals.
– Tech & SaaS less common (11%) compared to 28% in VC-backed.
– Food & drink, cleantech, sustainable transport—crowd favourites. -
Geography
– London still reigns: 51% of crowdfunded companies.
– South East second at 10%.
– Northern England lags at 8%. -
Progression rates
– Only 6% of crowdfunded rounds (2011–2021) have exited.
– 20% of crowdfunded companies have since folded.
Risk is real. But so is the upside.
And here’s a kicker: despite tougher times, commission-free equity investment can make a difference. Lower costs mean more attractive returns. More investors. Thicker order books.
Oriel IPO’s Commission-Free Advantage
Platforms like Seedrs and Crowdcube are household names. But they take between 4% and 7% commission on every successful raise. Oriel IPO flips that on its head:
- Zero commission on funds raised
- Subscription-based access
- Curated SEIS & EIS opportunities
- Quality assurance from a rigorous vetting team
No more “we’ll take 6% and then surprise you with admin fees.” Just clear, commission-free equity investment.
Commission-Free SEIS & EIS Marketplace
- Hand-picked startups that tick the SEIS/EIS boxes.
- Clear eligibility checks.
- Upfront tax-relief estimates.
- Detailed company profiles and financials.
Educational Resources and Tools
We’ve all been there—tax rules that read like ancient hieroglyphs. Oriel IPO includes:
- Step-by-step guides on SEIS & EIS.
- Webinars with seasoned angel investors.
- Templates for investor decks.
- Access to Maggie’s AutoBlog, our AI-powered resource that helps founders craft SEO-friendly campaign content in minutes.
No guesswork. No hidden jargon. Just actionable steps to launch your fundraise.
Preparing Your Crowdfunding Campaign
Whether you’re a founder or an investor, you need to get your ducks in a row:
- Founders
- Validate your proposition.
- Nail your valuation—realistic beats aspirational.
- Prepare investor packs with clear roadmaps.
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Collect customer testimonials.
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Investors
- Understand your risk appetite.
- Check SEIS/EIS eligibility early.
- Spread investments across sectors.
- Use Oriel IPO’s curated lists to spot high-potential ventures.
Our platform guides you through each stage. Think of it as your crowdfunding copilot.
Future Outlook: What’s Next for 2025 and Beyond?
The UK Government’s backing of SEIS/EIS isn’t going anywhere soon. Expect:
- Growth in late-stage crowdfunding as the gap with VC narrows.
- New digital tools for compliance and analytics, likely integrated into marketplaces.
- More partnerships between platforms and advisory networks.
- Greater competition, pushing platforms to innovate or perish.
Oriel IPO’s commission-free model and subscription focus positions it to thrive. As trial users convert to paying subscribers, the platform can reinvest in deeper analytics and richer educational content.
Conclusion: Seize Commission-Free Equity Investment Today
Equity crowdfunding in the UK has evolved. From just eight deals in 2011 to hundreds every year. Yet the real game-changer is how you access and fundraise. A commission-free equity investment model paired with SEIS & EIS insights gives you the edge.
Ready to cut fees, maximise tax relief and back the next wave of British startups?
