Crowdfunding platforms are relatively straightforward. In return for a small commission on the amount raised, they’ll manage most of the technicalities and legalities of the deal. That works perfectly for less sophisticated investors because it means they can invest relatively small amounts in your business without having to jump through hoops to close the deal. It can work perfectly for your business as well, because it means you can leverage your existing networks and allow your customers to own part of your company. As BrewDog discovered when they used the crowdfunding platform Crowdcube to raise money for their craft brewery company, crowdfunding can result in a highly lucrative win-win situation. That’s why they’ve gone back to crowdfunding several times, raised millions of pounds in the process, and built a fan base that’s massively increased their brand loyalty.

If you’re seeking crowdfunding in the UK, two of the largest platforms to consider are Crowdcube and Seedrs. However, it’s not as simple as just signing up to those sites and then sitting back while the money rolls in. Crowdcube and Seedrs have very similar criteria to Angel investors in that, before they accept you onto the platform, they’ll want to be assured that your business has a credible plan and is followed by a strong community that is likely to invest in you. They’ll also expect you to have some initial investment already committed to your round, so you’ll probably need to attract a few Angel investors before crowdfunding becomes a genuine possibility.