Each Entrepreneur creates an online Pitch explaining their business and what they aim to achieve with the investment. The Pitch will include 2 key numbers:

The Target and the total amount of money they wish to raise and invest in the business
The equity offered and the percentage share of the business they are offering in return for raising the target

Entrepreneurs then promote their Pitch to potential investors. Investors then invest money in the Pitch and over a period of time (60 days is the maximum time available to raise the investment required) investments accumulate until the Target is reached.

The minimum investment is just £10 but investors can of course invest larger sums.

Why should I invest in a Pitch?

There are a number of reasons you may want to invest in a Pitch:

To make a return on your investment
To get a unique Reward for your investment (see Rewards below)
To help a friend launch their business
To support a business or industry you believe in
To help small British businesses
For the fun of it

Investors should implement a diversification strategy when building an investment portfolio. Diversification involves spreading your money across multiple investments and will give you, as an investor, greater peace of mind that your investments will sustain in adverse market conditions and cushion losses. However, it will not lessen all types of risk.
By registering as an Investor on Crowdcube you agree to building a portfolio with a spread of investments worth at least £1000 over a 12 month period.

How long does the Entrepreneur have to raise the Target amount?

Each Pitch has 60 days to raise the Target amount.

What happens once the Target amount is raised?

Once the Target is reached, we will introduce the entrepreneur to Ashfords LLP who they will need to engage with to be their solicitors for the completion process. Ashfords LLP will familiarise the entrepreneur with our standard Crowdcube Articles of Association and make any amendments that are necessary before they fully adopt them.

Once the paperwork and legal documentation is completed, the money will be transferred to the Entrepreneurs' bank account and shareholder certificates can be issued. It is the duty of the pitch owner to organise the delivery of any promised rewards in a timely manner. This process takes about six weeks.

Investors will be emailed a copy of the adopted Articles of Association and given seven working days to review them. During this period an investor can ask any questions that they may have and withdraw their investment if they wish.

What are the average time frames involved in getting my pitch live and receiving the money?

Depending on your investment readiness, getting your pitch live on the site can take from a couple of days to a few weeks. The average time for a pitch t reach its funding target is around 45 days, although some have secured their funding in just a few days. Upon successfully completing your pitch, the timeframe for completing the legal documentation and transferring the funds over to you is around six weeks

What happens if the Target amount is not reached?

If the Target amount is not raised within the time period then the Pitch will expire and no money will be taken from any Investors bank accounts.

Can I raise more than my Target amount?

Yes, once a pitch has reached its Target Amount it is possible to set a secondary target and continue to receive more investment until either the secondary target is met or the pitch completes its duration.

Is there a maximum or minimum Target amount?

The minimum Target amount is £10,000. There is no maximum target, amount however our optimum range is up to £150,000. If you are looking to raise over £150,000 you will need to have a very compelling proposition to convince us to list your business on Crowdcube.

Are you authorised and regulated by the Financial Conduct Authority (FCA)?

Crowdcube is authorised and regulated by the Financial Conduct Authority (No. 572026). You can see full details of our authorisation and permissions on the FCA Register.

The Financial Conduct Authority (FCA) is an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000. They are an independent organisation responsible for regulating financial services in the UK and set the standards that they must meet and can take action against firms if they fail to meet the required standards.

How do I register/set up an account?

To set up an account, click "register" the link is found in the top right hand corner, and enter your email address, username and password. Usernames have to be between 4 and 12 alphanumeric characters with no hyphens, dots or underscores.

INVESTING

How do I invest?

Once you have found a Pitch that you want to invest in simply enter the amount of money you wish to invest in the box that says "Enter Amount" and click on the "Invest now" button. You will need to become a member first and complete a short questionnaire that assesses whether you fully understand the high risk nature of investing in start-ups and early stage businesses, or self- certify yourself as a High Net Worth Individual or Sophisticated Investor.

We take all investments by a one-off Direct Debit transaction which is simple to use and ensures you don’t miss out on an investment opportunity. You just need to complete the online form and the money will only be debited from your account upon the pitch hitting its funding taget and all of the legal paperwork and documentation is completed. If the pitch doesn't reach its target then no money is taken. Please note that this option is only available to members with a UK current bank account (i.e. not a savings account) and UK address.

The minimum investment is only £10.

Who can invest?

To invest on Crowdcube you must complete a short questionnaire that assesses whether you fully understand the high risk nature of investing in start-ups and early stage businesses or self-certify yourself as a High Net Worth Individual or Sophisticated Investor. You must also be over 18 years old.

When is the money taken from my account?

When you invest via a one-off Direct Debit payment, using GoCardless, the money will only be taken from your account when the pitch reaches its funding target and all of the legal documentation is completed. GoCardless will charge one per cent of your transaction but with a minimum fee of £0.10 and a maximum fee of £2.00 in place. Therefore for example, if you invest £10.00 you will pay £0.10 and if you invest £1000 you will pay £2.00

If funding fails, do investors pay anything?

No, you will not be charged if the pitch fails to reach its agreed funding target and your money will not be withdrawn from your bank account.

How does investing actually work?

If you successfully invest in a business via Crowdcube you will become a direct shareholder in that company. The amount that you invest and the equity that the company is issuing in exchange for investment will affect your percentage ownership of the business. Once the legal documentation is completed you will become a legal shareholder in that business, be sent a share certificate and appear on the companies share register on Companies House. Such investments are long-term and used to help the companies succeed and allow them to experience more growth than they would if they were funded with a traditional loan or grant.

The majority of investors are classed as B Shares, which means that you will not have a vote in any future business decisions. Companies pitching on Crowdcube can offer A Shares with voting rights so please check the pitch carefully.

To invest on Crowdcube you must either self-certify yourself as a High Next Worth individual or Sophisticated Investor or complete a short questionnaire that assesses your understanding of the risk involved when investing in a start-up company.

Investing in start-up and early stage businesses is high risk. The majority of start-ups fail or do not deliver shareholders a return on their investment. Liquidity, or the ability or cashing in your investment is limited as it often relies on the company being sold. Dividend payments are rare and the likelihood of an investor's percentage shareholding being diluted by future fundraising is high.

What are the risks of investing?

Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest via Crowdcube once you are registered as sufficiently sophisticated. Please click here to read the full Risk Warning.

Do you publically publish my investment amount?

No. We display a list of Pitches that you have invested in on your public profile but we do not disclose how much money you have invested in each Pitch.

How do I know the Entrepreneur has a genuine business idea?

Whilst Crowdcube does vet businesses before they are listed on Crowdcube, investors should call upon their own judgement, knowledge and research along with that of the Crowd (other Investors within Crowdcube) to decide whether the Entrepreneur is worthy of their investment.

Am I able to ask the Entrepreneur questions about their business?

Absolutely. We provide a discussion forum for each pitch where you can ask questions which the Entrepreneur will reply to. You can also use the forums to discuss the Pitch with other Crowdcube members and help each other to form opinions on the Pitch's prospects.

I am not in the UK, can I still invest?

Unfortunately, you need to be a UK resident with a UK bank accout to invest on Crowdcube.

Do I get notified when a pitch successfully reaches its Target?

Yes, when a Pitch reaches its Target all Investors will receive an email to that effect.

Can I cancel my investment?

Yes, you can cancel your investment in a Pitch at any time before the deal is completed. Please call us or send us an email if you wish to do this.

Investors in a pitch that successfully reaches its funding target will be emailed a copy of the adopted Articles of Association and given seven working days to review them. During this period an investor can ask any questions that they may have and withdraw their investment if they wish.

Can I pay by cheque or bank transfer?

We don't accept cheques or bank transfers.

What is diversification and how does it work to reduce some of the risk of investing in businesses via Crowdcube?

What is your complaints procedure?

In the unlikely event that you are not completely happy with the service that we provided you can register a complaint online or by phone. To submit a complaint, please visit our Complaints page.

Do I benefit from Financial Ombudsman Service (FOS) and the Financial Services Compensation Scheme (FSCS)?

As a Crowdcube investor you may benefit from the Financial Ombudsman Service (FOS), which is the official independent expert in settling complaints between consumers and businesses providing financial services. It looks at consumer complaints about a wide range of financial matters – from insurance and mortgages to savings and credit. It answers more than a million enquiries a year and deals with more than 250,000 disputes.

FOC is completely independent and impartial, supporting neither the business nor the consumer.

Please click here to find out more information about the Financial Ombudsman Service (FOS) and whether you may be eligible to benefit from its service.

You may also be covered by the Financial Services Compensation Scheme (FSCS) is the UK's compensation fund of last resort for customers of authorised financial services firms. The FSCS may pay compensation if Crowdcube is unable, or likely to be unable, to pay claims against it – this is usually because the company has stopped trading or has been declared in default. The scheme applies to Crowdcube's activities only (post FCA authorisation, 01 Feb 2012) and would not cover investors in in the event investee firms were to fail.

The FSCS is independent of the government and the financial industry, and was set up under the Financial Services and Markets Act 2000, becoming operational on 1 December 2001. It does not charge individual consumers for using its service.

Please click here to find out more information about the Financial Services Compensation Scheme (FSCS) and whether you may be eligible to benefit from this scheme.

REWARDS

What is a reward?

A reward is a gift of goods or service, usually related to your business, that you provide to an Investor as an incentive to invest in your Pitch.

For instance, you could give away one of your products or a discount on future purchases of your products or services.

How do I create a reward?

Once you have applied for and been accepted as an Entrepreneur you will be able to create your own Pitch within the My Pitch section of My Account.

There is a sub-menu within the My Pitch section called Rewards . From here you can create, edit and delete rewards.

How do I redeem my reward?

Once the Target has been met and the investment has been made in the Entrepreneurs company the Entrepreneur will be responsible for ensuring that every Investor receives their appropriate reward.

What if the entrepreneur needs more information (i.e. T-Shirt sizes etc.) for the reward?

The Entrepreneur is responsible for contacting the Investors by email if any further information is required.

Who is responsible for ensuring rewards are delivered?

Entrepreneurs take full responsibility for ensuring all Investors receive their reward.

ENTREPRENEURS AND PITCHES

How do I get investment for my business?

To be approved to list your business on Crowdcube you will need to provide a business plan, financial forecasts and a video pitch that clearly explain the investment proposition. For advice on getting investment ready click here. Click here to apply to start a Pitch

Do I need to be a Public Limited Company (PLC) to raise money on Crowdcube?

No, you do not need to be a PLC however you do need to have a regular Limited company.

Who can start a pitch?

Anyone who is a UK resident, over 18 years old and has or can create a UK based Limited Company can become an Entrepreneur on Crowdcube.

Do pitches require an investment target and end date?

Entrepreneurs must set an investment Target which cannot be changed once their Pitch is published.

The deadline is automatically set at 60 days from the date that the Pitch is published.

If the Pitch is successfully funded, how do entrepreneurs receive their money?

Once the Target is reached, we will introduce you to Ashfords LLP who you will need to engage with to be your solicitors for the completion process. Ashfords LLP will familiarise you with our standard Crowdcube Articles of Association and make any amended that are necessary before you fully adopt them. Once the paperwork and legal documentation is completed the money will be transferred to the Entrepreneurs bank account and shareholder certificates can be issued It is the duty of the pitch owner to organise the delivery of any promised rewards in a timely manner. This process takes about six weeks.

What fees do Crowdcube charge?

It is currently free to register as an Entrepreneur and add a Pitch to Crowdcube. For a limited period we are waiving our £250 listing fee.

When an Entrepreneur successfully raises their Target amount Crowdcube will deduct a success fee of 5% of the target amount.

For the purposes of execution, a fee of £1,750 (exclusive of VAT) is charged. Of this, £1,250 plus VAT is paid to the solicitors engaged to see to the adoption of our standard form Articles of Association, the waiver of existing pre-emption rights, and the issue of new shares and a fee of £500 plus VAT is charged by Crowdcube Ventures Limited for administering the process, preparing and issuing share certificates and dealing with the inevitable miscellaneous queries

This model of charging means we only charge Entrepreneurs if they are successful in raising their funding through Crowdcube.

Is there a maximum investment amount for a pitch?

There is no maximum amount that can be invested in a Pitch.

Can I create more than one pitch simultaneously?

No, each Entrepreneur may only have one active Pitch at any time.

Can pitches be edited after launch?

Pitches can be edited and updated at any time, however all amendments do need to be passed through th Crowdcube team to ensure they are in line with the proposition.

Can pitches raise more money than the Target?

No, as soon as the Target amount is reached the Pitch is closed to any new investments.

Can Entrepreneurs increase/decrease the Target amount?

Please contact the Crowdcube Team if you wish to change the target amount of your pitch.

Can Entrepreneurs increase/decrease the Equity offered?

Once the Pitch is live the Entrepreneur may only increase the amount of equity offered, they cannot ever decrease it.

Can an entrepreneur end a Pitch early?

Yes, if you wish to cancel your pitch for whatever reason please contact us and we will cancel your pitch for you

Can I invest in my own Pitch?

Yes, absolutely.

I find investment from another source. Can I add it to my total?

Yes, please notify the Crowdcube team and we can add it to your total.

What are Pitch Updates?

Your current investors and pitch followers will automatically be notified of your update by email. This is a useful tool for letting all people interested in your pitch know about any recent business developments and that you are active on the Crowdcube site.

Do you have any tips on producing a pitch video?

Yes you can see them here

Is there a Crowdcube widget for promoting pitches?

Yes, on every published pitch there is a widget that you can place on your site or blog which shows the pitch details in real time. Just click the "embed on site" link within the pitch page.

ABOUT CROWDCUBE

Is Crowdcube on Twitter and Facebook?

Yes and you can see us at www.twitter.com/crowdcube

www.facebook.com/crowdcube

Do you have a Crowdcube blog?

We sure do. It's at http://blog.crowdcube.com

How can I request new features and improvements on Crowdcube?

Please email us at support@crowdcube.com

Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest via Crowdcube once you are registered as sufficiently sophisticated. Please click here to read the full Risk Warning.

This page has been approved as a financial promotion by Crowdcube Ventures Limited, which is authorised and regulated by the Financial Conduct Authority. Investments can only be made on the basis of information provided in the pitches by the companies concerned. Crowdcube takes no responsibility for this information or for any recommendations or opinions made by the companies.

Crowdcube Ventures Limited is authorised and regulated by the Financial Conduct Authority (No.572026).