Crowdfunding Guide

Crowdfunding for UK Businesses 2025

Raise funding from the crowd. Equity crowdfunding (Seedrs, Crowdcube) vs rewards-based (Kickstarter, Indiegogo). Success rates and costs for your business growth.

38-41%

Success rate

£150k-£5m

Equity raise

12-18%

Cost of raise

2 types

Options available

Two Types of Crowdfunding

Equity Crowdfunding

Sell Company Shares

Platforms:

Seedrs, Crowdcube

Amount:

Raise £150k-£5m typically

Equity:

Give away 5-20% company equity

Ownership:

Keep the money (not a loan)

Shareholders:

Investors become shareholders

Rewards-Based

Pre-sell Products

Platforms:

Kickstarter, Indiegogo

Amount:

Raise £5k-£500k typically

Reward:

Backers get product/reward, not equity

Ownership:

Keep full ownership

Delivery:

Must deliver promised rewards

UK Equity Crowdfunding Platforms

Seedrs (Republic Europe)

Success rate:

41% of campaigns funded

Average raise:

£430,000

Fees:

6-7.5% + legal costs (£10k-£25k)

Minimum:

£150,000 target

Crowdcube

Success rate:

39% funded

Average raise:

£380,000

Fees:

5-7% + legal

Minimum:

£150,000 typically

Rewards Crowdfunding Success Rates

Kickstarter UK

Success rate:

38% success rate

Average raise:

Average £12,500 raised

Indiegogo

Success rate:

9% success (flexible funding)

Average raise:

Average £8,200 raised

Costs of Crowdfunding

£500,000 equity raise via Seedrs

Platform fee (7.5%)

£37,500

Legal costs

£15,000-£25,000

Accountant/advisors

£5,000-£10,000

Marketing/video

£5,000-£15,000

Total cost:

£62,500-£87,500 (12.5-17.5%)

Requirements

Equity crowdfunding needs:

Compelling business with growth potential

3-year financial projections

Professional pitch video

Valuation (independent preferred)

2+ years trading (most successful campaigns)

Conclusion

Crowdfunding suits consumer-facing businesses with compelling stories. Success rates 38-41%, but costs 12-18% of raise. Only pursue if confident in campaign appeal for your business growth.

Crowdfunding vs Traditional Finance

Compare crowdfunding costs against traditional loans and investors

We will recommend the most cost-effective option for your business

Compare Funding Options

Frequently Asked Questions

What are the two types of crowdfunding?

Two main types: Equity Crowdfunding (sell company shares, platforms Seedrs and Crowdcube, raise £150k-£5m typically, give away 5-20% company equity, investors become shareholders) and Rewards-Based (pre-sell products, platforms Kickstarter and Indiegogo, raise £5k-£500k typically, backers get product/reward not equity, must deliver promised rewards, keep full ownership).

What are the success rates for crowdfunding?

Success rates vary: Equity crowdfunding (Seedrs 41% success rate, average £430k raised, Crowdcube 39% success rate, average £380k raised), Rewards-based (Kickstarter UK 38% success rate, average £12,500 raised, Indiegogo 9% success with flexible funding, average £8,200 raised).

How much does crowdfunding cost?

Costs vary by platform: £500,000 equity raise via Seedrs = Platform fee (7.5%) £37,500 + Legal costs £15k-£25k + Accountant/advisors £5k-£10k + Marketing/video £5k-£15k = Total cost £62,500-£87,500 (12.5-17.5%). Equity crowdfunding costs 12-18% of raise.