How To Understand Equity Crowdfunding

Money: what will you do with yours?

Seedrs' Chris Rea shares nine key ideas about equity crowdfunding that will focus the minds of investors and SME owners alike. He uses the time-honoured tactic of  "You might think it's like that, but really, it's more like this". We like his attitude. 

Chris is a Senior Campaigns Associate with Seedrs, around four years out of university, with an attitude to crowdfunding that's so cool and calm (okay, some of you may find this next bit annoying) that he lists his portfolio on his LinkedIn profile. We tip our hat to the man, because he's walking the talk.  

Our favourite takeaway from this is that the old cliche about "adverse selection" is not true. People used to say that businesses would only go on a crowdfunding platform if they couldn't raise money any other way. Chris' experience chimes with ours: there are plenty of good firms raising. Some of them will appeal to you, and some of them won't, and if you feel like you're in the wrong room, go and find a better one. You have plenty of choice in this market. you  raised  

The point that follows on from that is that crowdfunding is social. It's inclusive, and it's a chance to meet interesting people who know things you don't, and be part of a team. Where the crowd goes, angel investor go too, and so do bigger, old school investments, when the company is at the right stage.

The complete article in Growth Business makes nine good points. We think it will help some of you sharpen up your thinking about equity crowdfunding.