The social impact seed fund Merism Capital is working with Crowdcube, the 'crowdfunding' website, to offer ordinary people equity in exchange for investment.
The initiative it designed to help social entrepreneurs and businesses seeking investment capital of less than £50,000.
Crowdcube provides small funds for new ventures, using the web-based notion of 'crowdfunding' where a community of like minded people pool their money and knowledge to support an idea, business or individual. Entrepreneurs can use Crowdcube as a platform to connect with a nation of business dragons to secure investment. Crowdcube is reducing its usual 5% fee to 3% to social enterprises referred by Merism.
"I’m a big believer in crowdfunding and this partnership complements our work really well whilst also growing the retail investor base for social businesses" said Stephen Rockman, founder of Merism Capital.
"Merism Capital connects constantly with social entrepreneurs, and because we focus on investment opportunities between £50,000 and £150,000, we can't always work with everyone we think may be promising. So for those seeking smaller seed rounds, Crowdcube gives us a fantastic alternative funding channel."
"We see a partnership with Merism Capital as a great fit for Crowdcube." said Darren Westlake, Managing Director of Crowdcube. Both organisations target equity investment and share similar goals - to create worthwhile businesses which are profitable and offer a return for all involved."
Interested parties can access the Crowdcube website for further information on the new initiative (opens in new window).