Friends and family are often the biggest supporters of seed-stage businesses. But, offline investing often requires investors to invest rather large sums (£10,000 to £25,000 minimum) to make the legal paperwork worthwhile. Unless an entrepreneur has wealthy friends and family, this can be very difficult to raise.
One of the main benefits of equity crowdfunding is that it makes it possible to raise smaller amounts of investment from friends and family – allowing them to more easily experience the rewards that come from investing in these startup companies.