Who can be my shareholders?
Feb 14, 2022Short answer - ANYONE (over the age of 18..). Equity crowdfunding campaigns democratise investment. They allow all types of investors, not just accredited or those who might be called ‘sophisticated investors, to be a part of a company’s growth and future. One huge benefit of these campaigns is that they give everyday investors the chance to invest as much or as little as they’d like - often from as little as £10. This means ordinary individuals have the ability to form a part of a company’s future - which used to be the stuff of angel and VC investors only.
'Equity crowdfunding campaigns democratise investment. They allow all types of investors, not just accredited or those who might be called ‘sophisticated investors', to be a part of a company’s growth and future.'
The platforms will do a certain level of due diligence, known as KYC (know your customer) and AML (anti money laundering) checks on investors who sign up to use them - these checks may vary depending on the type of investor they claim to be. For example, a high net worth individual who’s potentially putting in tens of thousands of pounds to a campaign will be asked to provide more information around levels of authenticity.
'The platforms will do a certain level of due diligence, known as KYC (know your customer) and AML (anti money laundering) checks on investors who sign up to use them'
While some platforms require very few checks to register as an investor, others are more stringent in their guidelines. Seedrs and Crowdcube will both ask you to self-certify as a method of letting them know you have an appropriate level of experience, risk awareness and means to invest in the business. It’s in no one's best interests for an investor to risk putting all the investment eggs into one basket.
Currently both platforms have different rules on which countries allow their residents to invest in offshore campaigns, but these rules are changing and for the better - providing more people the opportunity to invest in UK/EU campaigns.
Already know who your lead investors are and want some support in pulling everything together? Chat with our team today.