Investment Platform Reviews

Crowdcube Review

Crowdcube Review
Lily Bridgwood
Written by Lily Bridgwood

Download Free Crowdcube Factsheet

Welcome to the Crowdcube review page on OFF3R. This page provides key information about the Crowdcube investment process. The Crowdcube review page has been developed as part of the Investment Platform review series on OFF3R.

Platform Overview

Founded 2011
Location Exeter, UK
Regulatory Status Fully FCA Authorised

Summary

Crowdcube is the UK’s first investment crowdfunding service allowing individuals to invest or loan small amounts to companies in return for equity or potential annual return. Crowdcube provides a platform for entrepreneurs of start-ups and growing businesses to connect with potential investors.

Target Investors

Crowdcube is aimed at every-day investors. They want to give people the opportunity to become an ‘armchair Dragon’ to build their own investment portfolio supporting exciting businesses. Starting from a minimum of £10, investors can invest in businesses they like.

OFF3R’s Comment on Platform

Despite equity crowdfunding still recognised as relatively infant, Crowdcube were the first platform to enter the UK sector in 2011. Since then, they have already seen six exits for their investors*, including BrewDog and Camden Town Brewery. Subsequently, they have been able to deliver financial returns to investors to date. For an investor, this recognition of returns may be a potentially enticing factor when looking at equity crowdfunding platforms.

*Source: help.crowdcube.com/hc/en-us/articles/115000038984-How-many-exits-have-there-been-from-equity-investments-made-through-Crowdcube-


Investor Information

Minimum Investment? £10
Investor fees? No
Is early exit possible? No
What investor protection is available? Crowdcube Capital Ltd is authorised and regulated by the FCA. As such, investors have the potential to be compensated out of the FSCS, whilst their funds are held in the custodian. However, investors will not be able to claim under the FSCS if a Crowdcube Capital investee company fails.

Platform Registration and Investment Process

Please open the image gallery for a walkthrough of the Crowdcube investment process. Each stage of the investment process has also been detailed below.

Stage 1 – Registration Process

Joining Crowdcube is free, can take less than 60 seconds and carries no obligation to invest. You are required to take and pass a short quiz to make sure you understand the risks of investing. Once complete, you are able to view all the details for businesses seeking investment on the platform, including pitch videos, discussion boards and key documentation.

Stage 2 – Making an Investment

When you find an opportunity you like, you can invest directly through the pitch page. Simply enter the amount you wish to invest, which can be anything from £10 to the full amount that the business is seeking to raise, click ‘invest’ and that’s it the investment is made. Once the pitch is closed to further investment, Crowdcube will run anti-money laundering (AML) checks on all investors and once authorised, payment will be taken.

Stage 3 – Managing your Investment

Once the funds have been transferred to the company you invested in, your contact details will be passed over so the company can keep in touch with you directly and update you on the business’ progress. Most businesses provide short quarterly updates, and a more detailed update once a year. You can also view all of your investments when you login to your Crowdcube ‘dashboard’.

Stage 4 – Exiting your Investment

Whilst the pitch is live you can cancel or reduce your investment any time by contacting Crowdcube. Once the pitch reaches the target amount you will be emailed a copy of the Articles of Association and given a ‘7-day cooling off’ period to review them. During this period you can query, reduce or withdraw your investment. After this period has expired all investments are legally binding, and cannot be cancelled.

Watch the following video for more information on the Crowdcube investment process:

Please visit Crowdcube for more information on their investment opportunities. Your Capital is At Risk. 

Download Free Crowdcube Factsheet

Please visit OFF3R to compare some of the best equity crowdfunding opportunities and platforms.


Risk Warning

Information within this page has been sourced from Crowdcube and was correct as of July 2017. Investing in start-ups and early stage businesses involves a high level of risk, including illiquidity (the inability to sell assets quickly without the substantial loss in value), lack of dividends, loss of investment and dilution,  and it should be done only as part of a diversified portfolio. Investors should be aware the Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Past performance is not a reliable indicator of future performance. Your capital is at risk.

About the author

Lily Bridgwood

Lily Bridgwood

Lily is the Partnerships Associate at OFF3R. She has previous work experience in both the corporate and start-up environments. She joined the OFF3R team in October having recently graduated with First-Class Honours in International Business from the University of Edinburgh.