Crowd For Angels Review
For Business Owners
Crowd For Angels is a UK equity crowdfunding platform
This independent review has been written for startups & growing companies considering using Crowd For Angels to raise money with equity crowdfunding.
- What Is Equity Crowdfunding?
- Best Equity Crowdfunding Sites From Around The World
- How To Crowdfund A Business Through Equity Crowdfunding – Step-By-Step
In this Crowd For Angels review, you will learn about:
- Crowd For Angels’ Attitude To Curation
- Which Companies Can Use Crowd For Angels
- How Crowd For Angels Helps Business Owners
- What Is Unique / Different About Crowd For Angels
- How To Raise Money Through Crowd For Angels
Platform Website: crowdforangels.com
Crowd For Angels’ Attitude To Curation:
Crowd For Angels are one of the most stringent platforms for screening candidate companies. They take a very “professional / VC-like” approach to equity crowdfunding, rather than “letting the crowd decide for themselves”. According to their website, only 8% of companies who pitch ultimately make it through their comprehensive curation process.
All companies that apply go through extensive due diligence. This includes vetting the directors’ backgrounds, verifying the state of the company’s present financial situation, and and analyzing the company’s business plan.
Apart from these fiscal / legal checks, a commercial screening is also conducted – “Is this a good deal”, and “Will our audience like this”. For those who don’t make the cut, they attempt to direct companies to other funding avenues, or provide constructive feedback to help them progress.
It all adds up to a lot fewer companies being hosted on their platform, but a higher rate of success for those which do.
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Which Companies Can Use Crowd For Angels:
Crowd For Angels prefer:
- High-end consumer goods
Crowd For Angels tend to avoid:
- B2B Services
- Human-centric businesses
Innovative startups and growing companies. By allowing access to opportunities at this early stage, investors get to come in at the ground floor. As the company grows, so does the value of their investment.
United Kingdom and European businesses. Within that, they have a preference for UK companies because these get more favorable tax treatment for their UK investor audience, thanks to the the EIS and SEIS schemes. However, European companies can still get approval for EIS / SEIS by establishing a physical office in the United Kingdom. Companies from outside of Europe cannot use Crowd For Angels because of the difficulty of conducting due diligence.
Crowd For Angels want to lessen the friction of international investments. Reducing cross-border transaction costs is one reason they offer security token offerings. However, their platform is not open for investors from the United States or China. Investors still need to pass “KYC” checks (“Know Your Customer”) before they can invest.
Raise Size Restrictions:
Offers are typicallty in the £100,000 – £500,000 range, although there have also been a few £1 million+ sized raises as well.
Investors can invest from as little as £25, thus supporting companies looking for broad shareholder reach, so as to bring on a large number of small shareholder advocates. This is particularly attractive for B2C businesses.
Take The Quiz – Are You Ready For Equity Crowdfunding?
Equity crowdfunding can raise 6 – 7 figures of investment for startups & growing companies, without banks or VC.
But is your company ready to launch?
This short multi-choice assessment has been created to give an indication of whether your company is fit for funding.
All answers are kept completely confidential.
How Crowd For Angels Helps Business Owners:
They can help with building the investment pitch. This is not just from a legalistic perspective (i.e. “is it fair and proper”), but also to make sure the content is communicated clearly, so that an intelligent amateur investor can understand what it is that you actually do.
Next, they provide input on the marketing strategy (at no extra cost). Because most companies will be doing equity crowdfunding for the very first time, it is important to have someone on your side who know what crowd-building efforts are going to work (and what’s not going to work) from prior experience.
They also provide specific recommendations to marketing specialists (such as videographers) to help get the campaign assets produced professionally. Apart from the “crowd” outreach, Crowd For Angels can make direct introductions to the right investors in their database, who might have interest in a company like yours.
What Is Unique / Different About Crowd For Angels?
One of the big differences is their range of investment product offerings. Unlike most equity crowdfunding platforms, Crowd For Angels also have options *beyond* straight equity financing. Companies can also use Crowd For Angels to raise debt-based crowdfunding, and even tokenized securities. The fact that investors can settle in cryptocurrency is highly innovative and quite rare anywhere in the world.
Second is their public-facing nature. Rather than provide a generic “support” e-mail address, Crowd For Angels have telephone numbers listed on their website which anybody is welcome to call (including investors).
Crowd For Angels also pride themselves on being very hands-on with the companies they host. Although they can’t compete with the sheer volume of companies listed on the biggest UK crowdfuding platforms, the select few campaigns that *do* get listed will have dedicated resource every step of the way to help their campaign succeed.
How To Raise Money Through Crowd For Angels:
Crowd For Angels are looking for founders who are reliable and trustworthy, in charge of companies with true potential, which Crowd For Angels’ people would consider investing in themselves. So, although it sounds obvious, companies need to actually be a great business. Unfortunately, there is no “quick tip” or “shortcut” there!
Beyond that, a company can increase its chances of getting funded by being honest & clear about what they want to achieve. A lot of founders don’t know *why* they are raising money – or if they do, they are unable to clearly articulate it. Founders would therefore be well-advised to prepare a short 30 – 50 word “elevator pitch” before approaching Crowd For Angels, outlining why raising capital is so important to them.
Companies would also be wise to be open to criticism. Because the Crowd For Angels team (and investor database) listen to pitches all the time, their advice is well-grounded. So, if they tell say your pitch is too technical, or the valuation is too high – take that on board.
The final piece of advice is to learn from the best crowdfunding case studies so that you can replicate their success. Other companies have done crowdfunding before – you don’t need to learn from scratch. Absorb as much information as possible so that you are prepared to crowdfund!
You’ll learn how to choose the right platform, build a crowd, and raise game-changing money.
Join The Free Equity Crowdfunding Training
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