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How to make an investment on Crowdcube

How to make an investment on Crowdcube

Crowdcube is the UK’s leading equity crowdfunding platform with 600,000 registered members and over £500,000,000 invested in pitches through their platform.

To help our readers understand the process of registering with Crowdcube, we have compiled a 5-step guide to using the platform.

1. Register for an account to become a member

You can also use your email or an existing Facebook or Linkedin profile to create an account. This will give you access to the full details of the opportunities on Crowdcube and allow you to request restricted documents such as business plans.

2. Request restricted documents

Once registered, you’re able to request documents relating to a pitch including full business plans and executive summaries. These documents are key to understanding a business and outline the firm’s value proposition. At the top of the pitch you will be able to see if the company has advanced assurance from HMRC for any tax benefits for investors in the form of The Seed Enterprise Investment Scheme (SEIS) or Enterprise Investment Scheme (EIS).

3. Review rewards and share classes

Many companies conducting a fund raising round will offer rewards for making different levels of investment, these are accessible at the bottom the page. Also in this area, you will find the different share classes available to investors. Companies will set a certain level for which investors will receive ‘Investment’ shares. Investment shares give investors the same rights for dividends and capital distribution as ordinary share holders, but do not have voting rights or pre-emptive rights. ‘Ordinary’ shares will give investors voting rights and pre-emptive rights.

4. Make an investment via the ‘Invest Now’ function

When you have decided to make an investment, you can simply enter the amount you would like to invest and click ‘Invest now’ to complete your investment. There is a minimum of just £10.

5. Confirm you investment

Funds are not taken from your account until the raise hits the target. The money will be taken from your account once the pitch has fulfilled its target, however, you still have 7 days to review your investment. If the pitch does not secure its target amount, the funds will not be taken from your account.

Remember as with all investment, investing in company shares through Crowdcube means your capital is at risk.

The publisher of UK Investor Magazine, Investment Superstore, is now crowdfunding on Crowdcube, please click here to view our pitch.