The EIIS offers investors the opportunity to invest in newer companies and entrepreneurs at varying levels of risk and reward, but with minimum investment amounts that run into tens of thousands, often younger and less wealthy investors are unable to take advantage of the opportunities. Equally, even those with just a few thousand to invest want the opportunity to invest in the same good prospects as those with tens of thousands.
Spark Crowdfunding fills that gap, as Chris Burge, Co-founder and chief executive of Spark Crowdfunding, explains: “Spark Crowdfunding is an equity investment platform that raises money from the 13,000+ investors who are on our platform. We raise funds for all types of businesses – mostly B2B companies and mostly in the MedTech sector, but historically with businesses in the cyber, logistics, sport technology, hospitality and sustainability sectors.
“We raise sums from €100,000 to over €3.5 million.
“Almost all of our investments attract the government-backed EIIS tax incentive where investors can avail of up to a 50 per cent rebate on their investment, meaning that a €1,000 investment costs the investor only a net €500.
“The approach to raising investments is not unlike the other investment houses here in Ireland. We source great deal-flow, we select just the cream of the businesses, we conduct very in-depth due diligence on the businesses.
“If the business meets our highly selective investment committee criteria then we allow the business onto the platform. The business creates (with our assistance) a very high quality presentation video and Key Investment Information Sheet (along with other necessary investment material); this is then presented to our 13,000 investors for each of them to make a decision on whether to invest or not.
“Some investors invest our minimum amount (€100), but we have a large and increasing number of high and ultra-high net worth individuals on our database who invest very large six-figure sums into many of our campaigns.”
The tax relief under EIIS is important for Spark Crowdfunding investors – and thankfully, a lot of the businesses in the platform’s chosen sector qualify for the full relief.
“The government-backed EIIS tax relief is very important to our investors and over 90 per cent of campaigns that we have on our platform are EIIS-qualifying,” said Burge. “As most of our recent campaigns are LifeScience/MedTech, most of these qualify for the 50 per cent rate, which is a brilliant incentive to invest.”
There are many benefits to choosing Spark Crowdfunding for your investment. “Spark enables investors to participate in early-stage funding rounds for innovative start-ups and emerging companies, allowing for diversification beyond traditional investment channels. And, as Ireland’s primary equity crowdfunding platform, Spark Crowdfunding often features exclusive opportunities that are not available on general stock exchanges.”
No commission is a great bonus for investors. “If an investor has €10,000 to invest, 100 per cent of this goes into buying shares in the company. Spark Crowdfunding doesn’t charge investors any commission to invest. Instead, the fees are paid by the company raising the funds. This is in addition to the tax relief offered by EIIS investments.
“While investments in early-stage companies carry inherent risks, they also offer the potential for significant returns if the company succeeds and grows,” continued Burge. “Plus, regular investments through Spark Crowdfunding can help investors build a diversified portfolio of equity stakes in different start-ups, spreading risk and increasing the chance of achieving high returns.”
The Spark Crowdfunding platform is also a positive. “Spark Crowdfunding’s platform is designed to be accessible and user-friendly, simplifying the investment process for both experienced and new investors. The platform typically provides detailed information on each fundraising company, including business plans and financial projections, empowering investors to make informed decisions. And, being part of Spark Crowdfunding allows investors to connect with a community of private individuals and participate in discussions or events related to start-up investing.”
Perhaps Spark Crowdfunding’s most interesting feature is its inclusivity – partly through its low entry fees but also through its platform and strong community spirit. “My message to potential investors is simply to join the 13,000-plus investors on the platform and see for yourself what we offer,” said Burge. “Not only have we now completed over 50 campaigns since we started six years ago, but we are also authorised by the Central Bank of Ireland who oversee our activities and ensure that we meet their stringent criteria for investing.
“It’s a quick-growing and easy way to start building an investment portfolio from as little as €100 per investment. We currently have eight top-quality businesses live on the platform, so for as little as €800 anyone could have a brilliant starting portfolio of excellent businesses. No other investment company in Ireland can give that level of selection of high-quality business to start your investment portfolio.”
For more on Spark Crowdfunding, see www.sparkcrowdfunding.com