- How can I make changes to my profile or account?
Once you are logged in, click the profile icon at the top right hand corner of the web page. This will give you a list of options to make changes to your account.
- What does EquitySpark do about conflicts of interest?
We will review any possible conflicts of interest that could harm investors and manage or eliminate these conflicts if and when they arise.
- What is the minimum investment size?
The minimum investment size is usually £500. Each campaign will be different and the minimums can range anywhere from £10 to £10,000.
- What is the Appropriateness test?
If you self-certify as a Restricted investor, before you invest we require you to complete a short questionnaire designed to find out if investing if suitable for you, and that you understand all the risks involved. You must answer a variety of questions correctly in order to pass and be eligible to invest in opportunities listed on EquitySpark.
- How do you decide what opportunities are listed on EquitySpark?
We have a multi-step application process for companies choosing to raise money with us. Firstly, companies must submit an in-depth application form which includes data such as financials, management team, and business plan. If successful, one of our analysts will perform a deep-dive assessment on the company to find out more information about the opportunity. Next, the company is presented in front of the whole EquitySpark investment committee where further scrutiny is given and a decision to list the company on our platform is made. We are highly selective of what businesses we take on.
- Are investments in companies listed on EquitySpark safe?
No. Investing in early-stage businesses and start-ups is high risk. The majority of companies fail and do not deliver returns to their investors. The main reason people participate in this type of investing is the hope that one or more businesses will do so well that they will compensate for any losses made in other businesses that fail. There is no guarantee however that an investor will pick one of these successful companies.
Please visit our full Risk Warning here for more on the risks on investing.
- What does EIS/SEIS mean?
From time to time we put opportunities on our platform that are EIS and SEIS eligible. This means they are part of a government scheme that encourages investors to invest in early stage companies through offering some attractive tax incentives. Please see our full article on EIS and SEIS tax relief here.
- How do I choose what companies to invest in?
EquitySpark does not make any investment recommendations to you. No communications through this website or any other medium should be construed as an investment recommendation. In addition, nothing on the website or related EquitySpark mediums should be considered as an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. EquitySpark does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with EquitySpark, you should consult a professional advisor.
- Can I sell my shares on EquitySpark
We have plans to open our Secondary Market later this year. This means you will be able to buy and sell shares with other investors and shareholders in the EquitySpark platform. More information to follow.
- How much can I invest with EquitySpark?
For self-certified ‘Everyday’ or ‘Restricted’ investors, the maximum you can invest per campaign is £10,000. By self-certifying as an everyday investor, you also agree not to invest more than 10% of your net assets per year in shares, bonds, or other securities not listed on a stock exchange.
For Sophisticated and High Net Worth investors there is no limit other than the maximum funding limit presented within a particular campaign.
- What is diversification?
Diversification is the process of building an investment portfolio that has your money spread across a variety of investments that differ on variables such as: industry sector, stage, type, and more. This strategy helps to reduce risk exposure and can be attuned with the statement of ‘not putting your eggs all in one basket’. It is important to know that diversification will not lessen all types of risk.
- What is self-certification?
Before you invest you must self-certify what type of investor you are. There are three main types to choose from: Restricted Investor, Sophisticated Investor and High Net Worth Individuals. More information can be found here.
- What are EquitySpark’s fees for investing?
For investors we only charge you when you successfully complete an investment. We charge a 5% commission fee on any investments made. For example, say you invest £10,000 in a company you will be charged £500.
- What is EquitySpark?
EquitySpark is a crowdfunding platform that connects investors with investment opportunities.
- How do I make an investment?
First of all you need to complete your investor profile. This includes self-certifying your investor type and uploading KYC details. Once you are approved as a EquitySpark investor you can explore opportunities and choose how much you want to invest in them. If you choose to invest in an opportunity, you will be asked to pay for your investment using funds held in your EquitySpark Wallet. You can add funds to your Wallet by debit card or through a bank transfer. After the round successfully closes, funds will be released to the company and shares will be issued. Please wait at least 2 weeks after a round closes to see and track your Shares in your investor dashboard.
- Do you accept EUR or foreign currencies?
At this moment in time we only accept funds in GBP, however we are looking to accept currencies in the near future.
- What is KYC?
Know Your Client/Customer (or KYC) is the important process of verifying your identity, making sure you are who you say you are, and assessing your suitability to invest or raise money with us. Our KYC checks are in line with standard procedures and UK laws. For more information on our process please contact compliance@equityspark.com.
- How does Investing work?
Investing in a business with EquitySpark means that you will buy shares in that business in exchange for equity (a percentage of ownership in that business), making you a direct shareholder. Companies sell shares in order to raise money and hopefully grow in value. Shareholders can potentially receive returns in the form of dividends or when an company is sold.
It is crucially important to note that investing in early stage business or start-ups is high risk. The majority of business fail and do not deliver returns to shareholders on their investment. Please see our full risk warning here.
- What is a nominee?
A nominee shareholder is a person or company holding shares on someone else's behalf. The main form of a nominee is a trustee holding shares on trust for beneficiaries or a company acting as a nominee for overseas investors.
EquitySpark plans to launch a nominee service, which makes the ongoing administration of shareholder communication and dividends much easier for the fundraiser and investor.