Equity crowdfunding
Selling shares in your company to many investors, often including your customers, through an online platform authorised by the FCA.
- Shares
How it works
You agree a valuation and a target with an FCA-authorised crowdfunding platform, which checks your business and publishes your pitch. Investors, often including your customers and fans, buy shares online, sometimes for small amounts each. If you reach your target, the money is released and the investors become shareholders.
- Investment-based crowdfunding is regulated by the FCA. Retail investors face extra checks before they can invest, and are generally limited to putting 10% of their net assets into investments like these unless they are high net worth or sophisticated.
- Many companies use the SEIS or EIS tax reliefs to make their shares more attractive to UK investors.
- Since 19 January 2026, offers of £5 million or more made to a broad range of investors outside public markets must go through an FCA-authorised public offer platform.
Upsides and downsides
Upsides
- No repayments or interest
- Turns customers and fans into owners and supporters
- A successful campaign can raise your profile and attract further investment
- You can often keep control because each investor holds a small stake
Downsides
- You give up part of the ownership of your company
- Campaigns are public, so a failed one is visible to everyone
- Preparing and marketing a campaign takes a lot of time
- Many small shareholders can make future rounds and decisions more complex
Risks
- The campaign may not reach its target, and you may raise nothing
- Your shares are diluted again in future funding rounds
- Investors can lose all their money, which can harm your reputation with customers
What it costs
- How it is priced
- A share of the company, plus platform fees
- Costs that are easy to miss
- Platform fees. Check what is charged up front and what is charged if the campaign succeeds
- Legal and accountancy costs to prepare the company and the offer
- Time and money spent on marketing the campaign
- The ongoing work of keeping many shareholders informed
Offers under £5 million can run on investment-based crowdfunding platforms. Offers of £5 million or more to a broad investor base must use an authorised public offer platform.
Have an offer? Dilution calculator: see what you would own after each round
Does it fit?
Could fit when
- You are a limited company with a strong customer base or community
- You want to raise growth capital without taking on debt
- Your company and shares can qualify for SEIS or EIS
Unlikely to fit when
- You do not want to share ownership or information with many investors
- You need money within weeks
- You are a sole trader or partnership
Who can use it
- Business types: Private limited company, Public limited company
- Open to businesses with no sales yet
- The platform must accept your business after its own checks
- To offer SEIS or EIS tax relief, the company and shares must meet HMRC's conditions
Am I ready?
What a provider is likely to ask for. Tick what you have. Your ticks stay in this browser and nothing is stored. Checklist for all crowdfunding and community finance
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- Business plan and financial forecasts
- A valuation you can justify
- Company documents in order
Regulation and protections
The platform must be authorised by the FCA. Investors in crowdfunded shares are not covered by the Financial Services Compensation Scheme (FSCS) and can lose all their money.
Inviting people to invest is a financial promotion, and UK rules restrict it. Check the rules with your platform before you advertise the offer yourself.
Types of provider: FCA-authorised investment-based crowdfunding platforms; FCA-authorised public offer platforms (for offers of £5 million or more).
Also consider
Sources
- FCA: Crowdfunding · checked 7 October 2026
- FCA: PS25/9 New rules for the public offers and admissions to trading regime · checked 7 October 2026
- FCA: FCA lowers costs for businesses raising capital in support of growth (15 July 2025) · checked 7 October 2026
- FCA: PS22/10 Strengthening our financial promotion rules for high-risk investments · checked 7 October 2026
- GOV.UK: Apply to use the Seed Enterprise Investment Scheme to raise money for your company · checked 7 October 2026
- GOV.UK: Apply to use the Enterprise Investment Scheme to raise money for your company · checked 7 October 2026