Friends and family
are often the biggest supporters of seed-stage businesses. But, offline investing often requires investors to invest rather large sums (£10,000 to £25,000 minimum) to make the legal paperwork worthwhile. Unless an entrepreneur has wealthy friends and family, this can be very difficult to raise.
One of the main
benefits of equity crowdfunding is that it makes it possible to raise smaller
amounts of investment from friends and family – allowing them to more easily
experience the rewards that come from investing in these startup companies.
One of the most
passionate testimonials we’ve received yet, which epitomises the power of
friends and family crowdfunding, is from an investor in Mikes Fancy Cheese –
who also happens to be a friend of the founder. We couldn’t keep this to
ourselves and wanted to share it with you – her enthusiasm and support for her
friend’s business are contagious.
