Crowdcube approves every pitch on the platform to ensure it is fair, clear and not misleading. Our Due Diligence Charter outlines the analysis and verification that is conducted on equity fundraises on Crowdcube.
In line with our company values, our guiding principles for this Charter are:
Investor protection and transparency are of the utmost importance to us, so we continually review our existing due diligence processes to ensure we remain at the forefront of the investment crowdfunding market. This Charter outlines Crowdcube’s current standard due diligence process.
Due to the diversity of businesses that raise finance on Crowdcube’s platform, we cannot cover all situations in this Charter, which should be read as guidance. Crowdcube does not endorse any of the businesses raising finance on the platform, nor do we provide investment advice of any description, so before deciding to invest we strongly encourage all Crowdcube members to undertake their own research and if there is uncertainty, to receive independent advice before investing.
Prospective investors should also take care to:
Investors should be aware that Crowdcube relies upon information provided by every applicant company and its directors who are required to ensure all information provided is true and accurate. Crowdcube also relies on third-party tools to conduct some due diligence. Crowdcube’s investor terms and conditions, including Crowdcube’s limitation of liability, apply to investments made on the site and can be found here.
Where we list companies in partnership with our US partner platform, we rely on the checks and due diligence they undertake. US companies are therefore not subject to our Due Diligence Charter.
Crowdcube’s Due Diligence Charter was last updated in July 2017.
The following due diligence is carried on each company before the pitch is open to investment:
In addition, every company that raises capital on Crowdcube's platform provides warranties to Crowdcube in Crowdcube’s terms and conditions that include:
During the time the pitch is live on Crowdcube's platform, the compliance team will also:
We do not:
Once a pitch has reached its funding target we conduct further due diligence on the business before investments are completed and prior to any funds being captured:
Any necessary disclosures from the post-funding legal due diligence process are set out in the Legal Review document, which will be emailed to investors at the beginning of the seven days cooling off period.
The following information, unless specifically mentioned in the pitch, is not always reviewed as part of our standard due diligence, so investors should assume that the following have not been checked:
Whilst we do provide guidance on valuations, it is the company’s decision to price their investment offer and ultimately the crowd then decides if they are willing to invest at that price.
Under Crowdcube’s Terms and Conditions, every applicant company, acting by its directors, must ensure that all information which is provided to Crowdcube is true and accurate.
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.
Crowdcube is authorised and regulated by the Financial Conduct Authority (FCA) and the Comisión Nacional del Mercado de Valores (CNMV). This page has been approved by Crowdcube. Pitches for investment are not offers to the public and investments can only be made by members of crowdcube.com on the basis of information provided in the pitches by the companies concerned. Further restrictions and Crowdcube's limitation of liability are set out in the Investor Terms and Conditions.
Investment opportunities are not offers to the public and investors must be eligible Crowdcube members. Further restrictions and Crowdcube's limitation of liability are set out in the Investor Terms and Conditions. Please seek independent advice as required as Crowdcube does not give investment or tax advice.