Equity deals with Crowd2Fund

Designed with simplicity and clarity in mind

As an equity investor through Crowd2Fund, you will get some rights with your shares. However, no investor is able to influence important decisions - unless they own more than 25% of the business. This allows businesses and the passionate entrepreneurs behind them to retain control of their company.

Investor Advisors

Equity investors are encouraged to advise companies on strategy and direction. Each business develops a fantastic pool of experience and wisdom to draw from, and investors encourage the growth and success of their investments. Advice can be given easily via the Crowd2Fund platform.

Share Dilution

As usual, shares are diluted in future rounds of investment. However, current investors are given first right of refusal during further Crowd2Fund investment campaigns. Current investors are informed of the level of dilution and possible purchase price.

Investor Reporting

Crowd2Fund makes it easy for businesses to report directly to investors through the platform. For example, when sharing company progress and financial updates.

Share Certificates

Businesses that raise equity finance on Crowd2Fund are required to issue share certificates, and to file this process with Companies House. Our team is available to help manage this.

Articles of Association

Crowd2Fund issues standard articles of association.

Bespoke Equity Deals

More complex company structures may need bespoke equity deals. The Crowd2Fund team is ready to help you structure these deals; simply bear in mind that completion can become more complicated and take longer to happen.

Tax Incentives

Some of the businesses campaigning for funds are open to EIS and SEIS investment - these are clearly marked within our investment opportunities. Our team of accountants and tax specialists are here to help harness these tax incentives to the full.

Please note, 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.

Failed Companies

If the company you invested in fails, Crowd2Fund is not liable for repaying your investment. However, we do pursue all avenues possible to help recover the loan.

Dividend Payments

Businesses can make dividend payments through Crowd2Fund. However, dividend payment dates are only indicative and not legally binding. Businesses often decide to reinvest profits back into the business, rather than pay out dividends.

Repayment Methods

Investors will receive all repayments via our Direct Debit provider, Go-Cardless. Businesses make repayments to Crowd2Fund; this money is 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

Crowd2Fund performs due diligence checks upon all businesses listed. However, we cannot guarantee that profile information is correct. Investors are advised to undertake their own due diligence - with this in mind, we offer an enhanced due diligence service.

Disclaimer

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.

Risk warning

Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change.

Top