As you already know, we decided to raise money on an equity crowdfunding platform Syndicate Room in the UK. Equity crowdfunding platform lets you structure the round and raise money from multiple investors. It's like a Kickstarter and Indiegogo, but instead of selling your product on the platform you are selling the shares of your company. In our case, we sell 30 000 shares with the price of £10 each. Our goal is to raise £300 000.
Here's the link to our campaign (you need to register to access it): https://www.syndicateroom.com/rounds/ecoisme
Things are pretty clear with the traditional crowdfunding platform. There are a lot of articles about what is Kickstarter and Indiegogo. Equity crowdfunding remains not that clear.
Before launching an equity crowdfunding campaign we did our homework and research on this tool.
We decided to share with you things you need to know when investing via Syndicate Room 1. Syndicate Room is an investor-led platform
Investor-led is the platform, where the lead investor negotiates the terms for investors. Meaning, if you invest you will be having the same terms as our lead investor.
We already have a lead investor - K&T Capital - Europe's first hybrid accelerator-venture capital firm, based in the UK. Recently they announced
the closing of a €20M capital round, from private investors. All the terms are agreed and are published on our Syndicate Room page. 2. We have already passed the due diligence stage
Due diligence is the audit the lead investor makes to evaluate the investment opportunity. It is done to protect future investors from their losses. During the due diligence stage, the company is being checked whether there's a market opportunity for the product they make; whether the team is reliable and the execution will be made, etc. The details of the due diligence are strictly confidential. But if the company is not passing this stage it can't raise money. Due diligence report is available at the Syndicate Room campaign.
That being said, only 4% of the companies are passing the due diligence stage on Syndicate room and Ecoisme is one of them. 3. Investors' pre-emption rights are protected
Pre-emption rights protect your shares from being diluted. It means that in case the company issue new shares, you can follow-on on the same terms to keep the pro-rate. Syndicate Room by default offer pre-emption and voting rights to all investors. Meaning your shares, once invested, will be protected.
More pains regarding what can happen to your shares if you don't have pre-emption rights you can read at Investors Chronicle: https://www.investorschronicle.co.uk/2013/11/14/co... 4. Syndicate Room will hold your shares on your behalf. Nominee structure.
You do not need to worry about the administration of your shareholder's activity. Syndicate Room will represent your interests.
It means you will own shares and have exact same experience investing in our company as any experienced investor has. 5. Syndicate Room is approved by the Financial Conduct Authority (FCA)
Syndicate Room is fully regulated and authorized by FCA. FCA controls the way money flows internally. If a platform is not authorized by the FCA, you cannot be confident that your money is being handled correctly, or that it is safe during the transaction. 6. Syndicate Room supports the startups on their platform
Everyone who has dealt with crowdfunding campaigns knows how the success of your campaign depends on the platform itself. Syndicate Room has their own fund, called FundTwenty8. If investors are interested in the company and are participating in the round, Fund Twenty8 is taking part in the round too. In this way, the fund shares the risks with other investors up to £120 000. To conclude.
We have chosen the Syndicate Room as our equity crowdfunding platform due to the following reasons:
- Syndicate Room is known for its safety when it comes to investors
- Their team helps companies and investors and answers to all the questions in a fast manner.
- Only 7 campaigns can be launched at Syndicate room at the same time. While other platforms can have more than 30 campaigns simultaneously
- Syndicate Room co-invests if there's an interest from investors.If you are interested in investing at Ecoisme, please visit and invest on our page: