The emergence of equity crowdfunding as a way of raising finance is a natural progression from traditional angel investing. Instead of asking a small number of people for a large financial investment, equity crowdfunding involves raising money from a large group of investors who typically commit to invest a smaller sum. Equity crowdfunding has enabled people to make investments which might not otherwise have been possible and has allowed companies to access finance which might not otherwise have been available to them, sometimes in a very short period of time.
Crowdfunding campaigns can be stand-alone investments, or they can form part of a larger fundraising round from alternative sources such as angel investment or the public sector.
The foundation of our corporate practice is rooted in helping companies raise finance and crowdfunding is no exception. Over the past five years, we have seen the popularity of equity crowdfunding grow exponentially, with a huge increase in the number of crowdfunding platforms and the completion of a number of very high value crowdfunded investments. During this time we have successfully applied our industry knowledge and experience of Venture Capital & Angel Investment deals to crowdfunding campaigns. We have acted on behalf of both crowdfunding platforms and companies raising investment via equity crowdfunding in relation to standalone investments and as part of larger more complex deals.
We work closely with our clients throughout the crowdfunding campaign from launch to completion. Our work includes:
- advice in relation to which type of crowdfunding and/or platform may be appropriate
- investment preparation matters required in advance of the launch of the crowdfunding campaign including in relation to IP, commercial contracts and employment issues
- advising on the structure of the crowdfunding campaign and larger funding package
- advising on the contractual relationship between the online crowdfunding platform, the investors and the company
- preparing crowdfunding documentation including bespoke investment and/or shareholders agreement and Articles of Association
- advising on the ongoing relationship between the company, its investors and existing shareholders.
Our experience is clear from the deals which the corporate team have been involved in.
View our i-Deals section.
Contact our Crowdfunding Solicitors in Edinburgh & London
If you are considering launching a crowdfunding campaign or are involved in the management of crowdfunding platforms, our team can support you to structure crowdfunding campaigns, navigate regulatory requirements, mitigate potential pitfalls and successfully conclude crowdfunding ventures. Please get in touch on 0845 345 5004.