Equity crowdfunding is similar to buying stocks on the stock market, with a few differences:
- the company is usually much smaller, and still “private”, meaning you can’t trade its shares on an open stock exchange
- you typically buy these shares through a website like Seedrs or Crowdcube
- because very often the companies are at the beginning (“early-stage”), your investment can also qualify for several tax reliefs like SEIS or EIS. You can claim these tax reliefs by filing a Self Assessment tax return.
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