ABSTRACT
Based on an original qualitative dataset of UK companies that have used equity crowdfunding, this chapter discusses the advantages and disadvantages for entrepreneurs and investors approaching crowdfunding. The development of equity crowdfunding across countries is linked to the role of local governments and regulators in promoting or impeding its use among entrepreneurs and investors. Several steps have been taken to remove the obstacles to crowdfunding and ensure greater operability. Crowdfunding is open to any entrepreneur willing to share business plans to try to obtain funding, but there are certain restrictions on investors. Since the UK leads the European equity crowdfunding market, the chapter specifically focuses on the two most active equity crowdfunding platforms: Crowdcube and Seedrs. Crowdcube allows entrepreneurs a dual class share structure, in which ordinary shares can be issued with or without voting rights and the investor holds shares in the funded company.
