Crowdfunding has become one of the leading methods for raising funds thanks to its active social media-nourished community. Launching a crowdfunding campaign can often be difficult to wrap your head around if you’ve never seeked funding before. Where do I start? What’s the best plan of action? What platform do I use?
There are so many equity crowdfunding platforms that you will lose count. And while they all seem alike at first, there are many differences between them. For instance, as they deal in offering securities, most equity crowdfunding platforms are licensed to work with companies within the same country as they are. So, if you are a UK business, you probably will not be able to launch your crowdfunding campaign on a US crowdfunding platform.
You should familiarise yourself with all the particulars of each platform before launching your campaign. And we have created a list of equity crowdfunding websites like Seedrs to help you do it.
Websites like Seedrs in the UK
In the UK, equity crowdfunding took off in 2011. According to Beauhurst, £24 million was raised on UK territory across 101 crowdfunding equity investments in the first half of 2014 .
Established in February 2011, Crowdcube is the UK’s largest crowdfunding platform. The platform offers class A and class B shares. Crowdcube works not only with UK-based and Ireland-based limited businesses but also with European-headquartered companies.
Crowdcube’s revenue jumped 50% in 2018 and investments made through the platform were up 72%. What is more, successful raises on the platform rose 35% than the previous year .
While the website is very similar to Seedrs, there are some differences between them. For example, investors and campaigners pay different fees on each platform, and the duration of campaigns varies as well. Crowdcube also operates on a direct ownership model while Seedrs uses a nominee structure (learn the difference between the two models in our previous article – Seedrs vs Crowdcube).
Launched in 2013, SyndicateRoom is another leading equity crowdfunding platform in the UK. According to SyndicateRoom’s website, the platform has helped over 170 businesses raise funds since its launch date.
Like Crowdcube, SyndicateRoom operates on a direct ownership model. They have no set strict minimum raise amount, you do not have to pay investor fees and every start-up will have investment from a super angel.
Websites like Seedrs in the USA
The equity crowdfunding concept first emerged in the USA in the mid-2000s. At present, as much as $17.2 billion is generated via crowdfunding in the US . According to Statista, the average crowdfunding campaign funding is about $5,729 .
That said, let us now check out the leading equity crowdfunding websites like Seedrs in the US.
StartEngine claims to be the largest crowdfunding platform in the USA. Launched in 2015, the website has supported over 275 companies from 38 different countries. The platform raises about $55 a minute .
StartEngine offers three types of investment opportunities:
→ Regulation A+ – requires disclosures and allows campaigners to raise up to $50 million;
→ Regulation D (506(c)) – an accredited crowdfunding offering allowing campaigners to raise however much they like;
→ Regulation CF – allows campaigners to raise $1.07 million through a broker-dealer or regulated funding portal.
Another large player in the US equity crowdfunding market is WeFunder. WeFunder has raised $111 million in investments and holds a 44% market share. Interestingly enough, WeFunder has helped pass the JOBS Act in 2012. According to the company website, the platform has helped 310 startups and handled investments from over 300,000 investors .
Similarly to StartEngine, WeFunder has Regulation A+, Regulation D and Regulation CF offerings.
Websites like Seedrs in France
The French online alternative finance sector is a dominant force in Europe. France’s closest competitor is Germany, with the French online alternative finance sector being 28% than the German one.
Equity crowdfunding plays a huge role in the online alternative finance sector. In 2015 alone, investments through equity crowdfunding amounted to a total of € 75 million .
Established in 2008 and based in Toulouse, WiSEED allows everyone to own shares in French SMEs from € 100. WiSEED has a unique feature that allows investors to build a diversified portfolio. Up to now, the platform has raised over € 189 million for 463 projects, 160 of which have been successful .
Finding a crowdfunding platform that best suits your needs is not as easy as it may sound. Unlike donation and rewards-based crowdfunding, where your options are usually limited, there are various equity-based crowdfunding platforms. It is important to get the basics of how each platform works to make a more educated decision when you put up your business for crowdfunding.
Considering a fundraising campaign on Crowdcube or Seedrs? We can help.