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UKFT partners with Crowdcube


UKFT has partnered with crowdfunding platform Crowdcube to offer UKFT members preferred rates on fees.

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Crowdcube was founded in 2011 and has since supported 1,000 campaigns in successfully raising funds, with over £180 million invested on the platform to date by a crowd of over 880,000 registered Crowdcube investors.

Businesses interested in raising capital can apply if they are looking to raise between £50,000 and £6 million.

Reef Knots - Crowdcube

UKFT member Reef Knots teamed up with Crowdcube to launch a new crowdfunding campaign, which went live today and is open to anyone interested in buying shares in the company.

Established by Patrick Dudley-Williams in 2013, menswear brand Reef Knots has remained a founder-owned business but is now looking to crowdfunding to continue to build on its impressive growth through investment in product, marketing and expertise.

“I’m really pleased with the Crowdcube preferred rate for being a UKFT member,” said Patrick. “It’s actually a really great benefit for people going down that route and can justify many years of UKFT membership in itself.”

“My aim was to build a company inspired by the ocean, while giving back to it,” he said. “We now see multiple opportunities to grow the business and build on the incredible success we have already achieved.

“We aim to build one of the big British brands of tomorrow and we hope many of you will join us on this journey.”

Find the Reef Knots crowdfunding page here.

Investing through Crowdcube (and other crowdfunding platforms) can offer two tax-breaks for investors, both of which can be carried back to the previous year.

The Enterprise Investment Scheme is designed to help smaller, higher-risk companies raise finance by offering tax relief on new shares in those companies that qualify. For the investor, it’s a tax efficient way to invest in small companies. Reef Knots is EIS registered.

People can invest up to £1,000,000 in any tax year and receive 30% tax relief. However, they are locked into the scheme for a minimum of three years.

What makes it even more attractive is the ‘carry back’ facility where investments can be applied to the preceding tax year. Find out more here.

The second tax break available is the Seed Enterprise Investment Scheme (SEIS), which aims to encourage seed investment in early stage companies.

Investors, including directors, can receive initial tax relief of 50% on investments up to £100,000 and Capital Gains Tax (CGT) exemption for any gains on the SEIS shares. The maximum amount to be raised for each company is £150,000. Find out more here.

Nightwear and lingerie brand Bluebella is another example of a firm that has successfully raised finance through crowdfunding, raising £991,700 from 664 investors. The company was launched in 2005 as a home party plan business and has also worked in licensing, designing and creating products for the infamous brand Fifty Shades of Grey.

Bluebella raised almost 200% of their £500,000 investment target and is now looking to become an internationally recognised lingerie brand.

The UKFT preferred rate will be applied to Crowdcube fees if the raise is successful. To find out more, contact membership@ukft.org