What happens to crowdfunding entrepreneurs if they can’t rely on friends and family?

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In the past few years, equity crowdfunding has emerged as one of the greatest non-traditional support structures for growing companies, with Nesta revealing that the sector grew by 295% on the previous year’s figures – an incredible leap from £84m to £332m worth of investment in 2015. During that period, the equity-based crowdfunding model accounted for 15.6% of all seed and venture-stage equity investment, reflecting an alternative sector that has become the norm for many entrepreneurs in the UK. However, as with any market growing at such a remarkable rate, there are still areas that we as an industry need to take into consideration in order to promote its longevity and ensure that more businesses are fully maximizing the opportunities on offer through equity crowdfunding.

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