Crowdcube, the equity crowdfunding website, is now authorised by the Financial Services Authority (FSA). The authorisation makes Crowdcube the only regulated equity crowdfunding platform where investors can become direct shareholders in UK businesses.
Crowdcube will also now offer its investors' additional protection with access to independent experts from the Financial Ombudsman Service (FOS) and claim compensation from the Financial Services Compensation Scheme (FSCS).
Crowdcube applied for its FSA authorisation in 2011. Darren Westlake, co-founder and CEO of Crowdcube commented: "We're delighted to be the first authorised crowdfunding platform that allows investors to become direct shareholders in UK businesses. Our authorisation and the additional investor protection it affords will increase satisfaction and confidence, which is at the heart of our business and will be crucial to our long term success in the UK.
The Rt Hon the Lord Young, advisor to Prime Minister David Cameron on Enterprise, commented: "Crowdfunding is a highly innovative and important source of finance for UK businesses. I am delighted to see that the UK financial services industry and its regulators are reacting dynamically to new models of business finance, such as equity crowdfunding, so that the UK can maintain its position as world leaders in this space."
Crowdcube has raised over £5 million for UK businesses. More than 28,000 investors have registered on its website since its launch in February 2011.