There are 37 Equity crowdfunding platforms in United Kingdom. They focus on Real estate, Startups, SME, Sustainability, Litigation, Green energy, Health & Science, Logistics, Corporate bonds, Art, Social cause, Sport or Maritime providing different investment opportunities for retail and accredited investors.
The minimum investment amount varies from platform to platform and usually depends on the industry or particular platform goals. On this listing, you will find crowdfunding platforms that offer investment opportunities starting at 1€ with a maximum investment amount of 20000€.
As a crowdfunding platform directory, we verify the most active crowdfunding platforms if they reach out and claim their profile. On this listing, 12 crowdfunding platforms claimed their profile. They include Lemox, CrowdX, My.Enky Invest, Cahootz, Simple Crowdfunding and others.
Fun fact: among all the crowdfunding platforms listed here, the oldest has been founded in 2007 and the youngest in 2023.
Is investing in Equity crowdfunding platforms in United Kingdom profitable?
Overall, it can bring profit depending on your goals, investment strategy, and the reliability of both the crowdfunding platform and the project itself. It’s also important to take into consideration the market profitability and stability, your portfolio details, and the legislative framework operating in the country.
It’s best to review each of the above-mentioned aspects separately to understand the potential risk vs profit ratio better. Make sure you leverage multiple sources for your research. Consult financial experts, explore the platform’s website, and read investors’ reviews.
As obvious as it may seem, make sure to expand your search beyond just a few providers. Take some time to look into more than a few Equity crowdfunding investment platforms in United Kingdom to form a good idea of the investing climate within the niche. It will give an idea of the market’s economic potential, current competition, and financial opportunities.
So, explore the options, get familiar with the risks and benefits associated, and don’t neglect consulting financial advisors if needed.
How do you reduce the risks of investing in a Equity crowdfunding platform in United Kingdom?
Before proceeding with the recommendations on this, it’s essential to understand that investing via <type>-based crowdfunding platforms inherently carries the risk of losing the capital invested. What’s more, it’s even considered higher than traditional investing.
To make a firm decision, you need to be well aware of those risks and what you can do to manage and minimize them. By learning this info, you’ll be able to define the risk level you’re comfortable with. Here is what you can do.
- Research again. Yes, the due diligence part is essential in the crowdfunding business, so checking the platform’s track record, reviews, fees & policies is a must. In addition, evaluate the project you’re interested in: the business plan, leadership team, and their background. When in doubt, we encourage you to get a second opinion by consulting a financial advisor or the project managers themselves to ask all the pressing questions.
- Buyback guarantees. Choose providers who offer security guarantees to investors and have it clearly stated in their agreement terms. Buyback guarantees are the platform’s commitment to return the funds to investors should the borrower go bust or the campaign doesn’t take off. Before making any decisions, contact the company or the project representatives to connect on the security measures and exit options you have in place.
- Diversification. Enough has been said about the importance of diversification but it’s never extra to refresh. Always spread your investment across a few projects to ensure you don’t entirely lose the money, should things go south with one of the loans.
- Keep up with the regulations. The crowdfunding area has seen major growth over the past decades, and it’s finally come to a point where more regulations are being adopted to make it more transparent and established.