6 EIS Investment Success Stories

 It’s no longer just about helping startups raise capital; for investors, it’s a chance to achieve significant returns through carefully chosen ventures.

The UK has emerged as a global leader in equity crowdfunding, thanks to pioneering platforms like Crowdcube and Seedrs (now Republic Europe). These platforms connect innovative businesses with investors, fostering mutually beneficial growth. But what does success look like in this sphere? Here, we highlight 6 equity crowdfunding success stories that demonstrate the impressive potential of these investments.

What Is Equity Crowdfunding?

Equity crowdfunding allows individuals to invest in privately owned companies in exchange for equity (shares). Investors back promising startups at the initial stages of development, with the hope that the company grows and their shares increase in value over time.

While equity crowdfunding offers incredible opportunities, it’s important to note that investing in startups carries risks. Many startups fail, but for those that succeed, the rewards can be substantial. The advent of secondary markets has also given investors more flexibility, offering opportunities for personal exits rather than waiting for full company exits.

For UK investors, EIS (Enterprise Investment Scheme) and SEIS (Seed Enterprise Investment Scheme) offer additional benefits, including tax relief that can significantly offset potential risks.

Now, let's take a look at the businesses that achieved monumental success for investors.

6 UK Equity Crowdfunding Success Stories

1. BrewDog

BrewDog is the poster child for successful crowdfunding. Through its “Equity for Punks” campaigns, the craft beer brand raised funds while growing into a global name.

• Initial Investment: £230 per share in 2010

• Share Value (2017): £6,590

• Return: Approximately 2,765% in seven years

• Current Valuation (2024): £2 billion

Early investors saw one of the largest ROIs in crowdfunding history. BrewDog's share buybacks further demonstrated its commitment to rewarding loyal supporters.

2. Mindful Chef

Mindful Chef, a B Corp-certified healthy recipe box delivery service, struck gold when Nestlé acquired it in 2020.

• Initial Crowdfunding (2017): £1 million raised from 638 investors

• Return on Investment: Estimated at 350%

This case illustrates how acquisitions by global companies can deliver lucrative exits for investors.

3. Monzo

Digital banking startup Monzo started with a valuation of just £30 million in 2016. By 2024, its valuation skyrocketed to £3.85 billion.

• Share Price (2016): £0.51

• Implied Share Price (2024): £65

• Growth: 130x over eight years

Monzo has become a leading example of fintech potential, with early investors benefitting enormously.

4. Mr & Mrs Smith

This boutique hotel booking platform raised over £6 million through two crowdfunding rounds before being acquired by Hyatt Hotels Corporation in 2023.

• Crowdfunding Valuation (2018): £30 million

• Acquisition Value (2023): £53 million

Despite challenges during the pandemic, this business delivered a profitable exit for its investors.

5. Oddbox

Oddbox’s mission to reduce food waste resonated with investors, leading to extraordinary returns.

• Initial Crowdfunding (2018): Raised £520,000

• Share Price Growth: £2.12 to £459.26 (2021 valuation)

• ROI: Over 200x for early investors

Oddbox exemplifies how socially conscious businesses can thrive while delivering impressive returns.

6. Revolut

Widely regarded as one of the most successful fintech startups, Revolut achieved unparalleled growth.

• Crowdfunding Share Price (2016): £0.77

• Current Valuation (2024): $45 billion

• ROI: 400x

With its upcoming share sale and its new UK banking license, Revolut is poised to continue its upward trajectory.

The Benefits of EIS and SEIS for Investors

Investing in EIS and SEIS-registered businesses offers significant tax benefits for UK investors:

• Income Tax Relief: SEIS offers 50% relief, while EIS provides 30% relief on investments.

• Capital Gains Tax Exemptions: Profits from share sales are tax-free when certain conditions are met.

• Loss Relief: Investors can offset losses against income tax or capital gains.

These schemes reduce the financial risks associated with startup investments, further boosting potential returns.

What Makes a Crowdfunding Success Story?

While these examples highlight the potential rewards, it’s important to keep a few considerations in mind when evaluating opportunities:

1. Company Valuation: Investing early at a low valuation increases potential ROI.

2. Growth Trajectory: Look for businesses with strong, scalable business models.

3. Team and Vision: Successful startups often have passionate, resourceful teams with clear long-term goals.

4. Secondary Market Access: This allows flexibility for personal exits, reducing reliance on full company exits.

By strategically evaluating these factors, investors can position themselves to take advantage of equity crowdfunding’s wealth-building opportunities.

Maximize Your Investment Potential

The success stories of businesses like BrewDog, Monzo, and Revolut show that equity crowdfunding can generate life-changing returns. However, investing wisely is key. Use platforms like Republic Europe and Crowdcube to find opportunities that align with your goals, and don’t overlook the significant advantages of EIS and SEIS incentives.

Equity crowdfunding is not just about fueling business growth—it’s about unlocking unique opportunities for investors. Start exploring the world of equity crowdfunding today to secure your share of the potential.

Are you ready to make your first or next investment? Learn more about the UK’s dynamic equity crowdfunding platforms and take the first step toward smart investing today.