Crowdfunding for UK Businesses 2025

Two Types of Crowdfunding

1. Equity Crowdfunding - Sell Company Shares

Platforms: Seedrs, Crowdcube

• Raise £150k-£5m typically
• Give away 5-20% company equity
• Keep the money (not a loan)
• Investors become shareholders

2. Rewards-Based - Pre-sell Products

Platforms: Kickstarter, Indiegogo

• Raise £5k-£500k typically
• Backers get product/reward, not equity
• Must deliver promised rewards
• Keep full ownership

UK Equity Crowdfunding Platforms

Seedrs (Republic Europe)

• Success rate: 41% of campaigns funded
• Average raise: £430,000
• Fees: 6-7.5% + legal costs (£10k-£25k)
• Minimum: £150,000 target

Crowdcube

• Success rate: 39% funded
• Average raise: £380,000
• Fees: 5-7% + legal
• Minimum: £150,000 typically

Rewards Crowdfunding Success Rates

• Kickstarter UK: 38% success rate, average £12,500 raised
• Indiegogo: 9% success (flexible funding), average £8,200

Costs of Crowdfunding

£500,000 equity raise via Seedrs:

• Platform fee (7.5%): £37,500
• Legal costs: £15,000-£25,000
• Accountant/advisors: £5,000-£10,000
• Marketing/video: £5,000-£15,000
• Total cost: £62,500-£87,500 (12.5-17.5%)

Requirements

Equity crowdfunding needs:

• Compelling business with growth potential
• 3-year financial projections
• Professional pitch video
• Valuation (independent preferred)
• 2+ years trading (most successful campaigns)

Conclusion

Crowdfunding suits consumer-facing businesses with compelling stories. Success rates 38-41%, but costs 12-18% of raise. Only pursue if confident in campaign appeal.