Are you an entrepreneur or investor with questions on crowdfunding for equity? Here is your chance. Darren Westlake, co-founder and CEO of Crowdcube – the equity based crowdfunding platform in U.K. – will be talking all things crowdfunding and equity on our next Twitter #Crowdchat. Join the conversation using the hashtag #crowdchat on Oct 2 at 3pm BST.
We know entrepreneurs are changing the norm, disrupting convention and pushing big businesses to improve, creating an innovation climate that helps everybody. But there is one key hurdle for many promising entrepreneurs. Financing is undoubtedly one of the most challenging aspects for entrepreneurs. But the tide is changing with crowdfunding.
Founded in 2010, Crowdcube is the next generation of business investment. It is a new way to fund start-ups and business expansion by crowdfunding for equity, giving entrepreneurs a platform to connect with people and raise venture capital.
Darren is a serial entrepreneur, started his first company at age 26 and has since built and sold two companies. His background is in telecommunications, technology and internet. He has a simple (or complex!) enough goal – to solve the lack of financing options for small businesses!
“By attracting lots of investors who invest smaller amounts of money into a person, company, product or idea you can bypass the traditional ways of raising venture finance.”
How is equity crowdfunding different from a “gift-based” crowdfunding that we see more often? In gift-based or donation-based crowdfunding, funds are collected from a “crowd” for a predetermined goal , event or task, but there is no financial return to donors. The campaign may or may not advertise a “gift” or “reward” for your donation that could be a product or a discount.
In an equity crowdfunding model, the contributor becomes a shareholder in the company that is crowdfunding with a pre-determined stake. This means you can earn dividends and a part of revenue when shares are sold. The business could also fail and the investor assumes that risk.
Equity crowdfunding is new and is slowly being adopted worldwide. The UK and Italy are some of the countries that have a legal framework in place for equity crowdfunding and many countries are expected to follow suit, with legislation getting close in the US. Join Darren in conversation about the latest developments in equity crowdfunding and ask him your own questions!
Join us for #Crowdchat:
What: Darren Westlake: Crowdfunding for Equity
When: Wednesday, October 2nd – 3pm British Standard Time (10pm MYT | 10am EST)
Where: Twitter hashtag #Crowdchat
Who to Follow/Special Guest: @CrowdCube
Question for Darren? Tweet your questions to @CrowdWeek with the hashtag #crowdchat and we’ll ask them during the conversation!