For Business Owners
Envestors is a UK equity crowdfunding platform
This independent review has been written for startups & growing companies considering using Envestors 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 Envestors review, you will learn about:
- Envestors’ Attitude To Curation
- Which Companies Can Use Envestors
- How Envestors Helps Business Owners
- What Is Unique / Different About Envestors
- How To Raise Money With Envestors
Platform Website: envestors.co.uk
Envestors’ Attitude To Curation:
Envestors undertake more rigorous due diligence than normal equity crowdfunding platforms. This includes balance sheets, business model analysis, and doing background checks on directors and key management. They will only be allowed to go ahead if Envestors are confident in the proposition.
Envestors do this because they believe in strong investor protection. Equity crowdfunding investors tend to look to the platforms to screen out those which are not fit for funding. As a result of this intensive pre-campaign curation, only between 2 – 7% of companies applying their platform ultimately get to go live to the public.
Learn How To Succeed With Equity Crowdfunding
Equity crowdfunding offers amazing potential for startups and growing companies, but it is also a very steep learning curve.
In this step-by-step book, you will hear from the world’s leading platforms and from successful past crowdfunders from around the globe, with all their tips and tricks.
Learn how they did it, and how you can do the same.
Which Companies Can Use Envestors:
Envestors are a platform for sophisticated / high-net-worth investors rather than the “crowd”. Their investor audience tends to favor business models which are rich in intellectual property.
Examples of business models which get good uptake include:
- Medical technology
- Environmentally-focused technology
Envestors do not take businesses at the idea stage. There has to be proof that the business is solving a certain problem and getting uptake with customers. Best of all will be companies which can point to strong recurring revenue streams.
Envestors are regulated by the British Financial Conduct Authority (FCA). This means they are best-suited to help UK-based companies. While non-UK companies could use Envestors in theory, everything would be subject to UK regulations. As of the time of writing, Envestors have not hosted any non-UK companies.
Their platform is open to investment from all over the world, except for Canada, the United States and Japan (provided that Anti-Money-Laundering requirements are met).
Raise Size Restrictions:
Each individual investor needs invest at least £10,000. This is exceptionally high compared to the likes of Crowdcube and Seedrs who allow investment from as little as £10. They facilitate bringing on board a smaller number of large investors who are more committed to the company’s success.
For commerical reasons, companies need to be raising a minimum of £500,000 (and have an equity valuation which supports this). Envestors are comfortable supporting capital raises of up to £2 million.
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 Envestors Helps Business Owners:
Any company that ends up working with Envestors can expect corporate finance advice and valuation assistance. This is provided by Envestor’s team of finance professionals.
Envestors do not provide done-for-you marketing services. However, they can provide introductions to external providers such as Tribe First and IdeaSquares, at an additional cost to the company raising funds. Targeted outreach to those capable of writing large investment amounts necessitates a different strategy to the wide-reaching digital marketing campaigns typical for equity crowdfunding under lower investment minimums.
What Is Unique / Different About Envestors?
Envestors offers their technology as a white-label solution. It means that companies wanting to raise finance can host it on their own website, rather than listing on a “marketplace” platform alongside other campaigns. This has both advantages and disadvantages. White-labeling means that the company gets to own the data, own the branding, and set their own offer structuring with far greater freedom. However, a white-labeled campaign does not get to benefit from the existing audience of a marketplace crowdfunding platform. White label is therefore best for companies who are confident of driving all their own interest.
How To Raise Money With Envestors:
- Envestors are viewing companies in a similar vein to the way professional investors do. Envestors want to hear about the business’s traction, scalability potential, management team, and exit opportunities. Therefore, highlight these when talking them.
- Remember that you are not selling your product – you are selling your business model! Entrepreneurs tend to focus singularly on their product or service because they have more experience talking to customers on a day-to-day basis. But financial investors need to hear a different message. They are more interested in aspects such as the profit margins and market dynamics than the features of what you sell.
- 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 raise equity capital online!
You’ll learn how to choose the right platform, build a crowd, and raise game-changing money.
Join The Free Equity Crowdfunding Training
Get The Roadmap To Raising 6 - 7 Figures, Without Banks Or VC
✓ Where To Go To Find Equity Crowdfunding Platforms
✓ The Different Factors To Weigh Up When Deciding
✓ How To Find Out How Big The Platform's Audience Is
✓ What Else Is Crucial To Know About A Platform
✓ How To Avoid The Biggest Mistakes That Founders Make