As an investor, you will get some rights with your shares. However, you will not be able to influence important decisions unless you own more than 25% of the business. This allows businesses to retain control of their company.
Investors are encouraged to advise companies on strategy and direction. This gives businesses a fantastic pool of experience and wisdom to draw from. Advice can be given easily via the Crowd2Fund platform.
Shares are diluted in future rounds of investment. However, current investors are given first right of refusal during further Crowd2Fund campaigns. As an investor, you’ll be clearly informed of the level of dilution and possible purchase price.
The Crowd2Fund platform makes it easy for businesses to report directly to investors e.g. on company progress and financial updates.
Businesses that raise equity finance on Crowd2Fund are required to issue share certificates, and to file this process with Companies House. Our team can help you manage this.
Articles of association
Crowd2Fund issues standard articles of association.
Bespoke equity deals
More complex company structures may need bespoke equity deals. Our team can help you structure these deals, but completion can become more complicated and take longer to happen.
Some of the companies campaigning for funds are open to EIS and SEIS investment – you’ll see them clearly marked within our investment opportunities. Our team of accountants and tax specialists can help you harness these tax incentives to the full.
However, there is no guarantee that tax relief will be granted. Any monies due are only confirmed when the tax relief claim is processed. See HMRC for more details.
If the company you invested in fails, Crowd2Fund is not liable for repaying your investment.
Businesses can make dividend payments via the Crowd2Fund platform. However, dividend payment dates are only indicative and not legally binding. Companies often decide to reinvest profits back into the business, instead of paying out dividends.
Investors receive all repayments via our Direct Debit provider Go-Cardless. Businesses make repayments to Crowd2Fund and this money is then distributed to investors.
Sale of shares
If a shareholder wishes to sell shares, they are first offered to other investors in the same business at the sale price. After this, they are offered to third parties.
Business due diligence
While Crowd2Fund performs due diligence checks upon all businesses listed, we cannot guarantee that profile information is correct. Investors are advised to undertake their own due diligence and with this in mind we offer an enhanced due diligence service.
The above information is for informational purposes only. The individual circumstances of investors can vary, and the terms of each scheme are subject to change. For full details of any tax schemes, please refer to HMRC directly or contact your personal financial advisor or tax advisor.