The world’s first equity-based crowdfunding platform has opened talks with the Treasury over an expansion of the Seed Enterprise Investment Scheme (SEIS).
Darren Westlake, co-founder of Crowdcube, said his company would explore ways to simplify the SEIS application process, both for investors and those seeking funding.
Fellow Crowdcube co-founder Luke Lang told Startups: “The government is running a Red Tape Challenge, to ensure that regulatory systems are fit for purpose, and not holding back disruptive new companies.
“They wanted to speak with Crowdcube because one of the key threads is crowdfunding. As such, we’ve been discussing how they can encourage more innovation in this area.”
SEIS, which officially launches in April, offers significant incentives for investors to back early-stage start-ups.
These include tax breaks of nearly 80% in the first financial year, and a one-off exemption from capital gains tax if the profits are re-invested.
In seeking a partner to improve SEIS, the Treasury was impressed by Crowdcube’s disruption of the venture capital market, by offering a platform for early-stage companies to access thousands of amateur investors.
Lang added that SEIS held significant merits for start-ups and investors alike, saying:
“By stimulating the crowdfunding market, the government will ensure that the next generation of business finance flourishes – making access to finance for start-ups more accessible and commonplace.
“As crowdfunding becomes established, investors will benefit from a greater choice of investment opportunities.”
Last year Crowdcube was named as one of Startups’
Top 20 start-ups of 2011
and we have recently gone into partnership to host a
crowdfunding platform exclusively for Startups’ readers