A company is issuing new shares, known as primary shares, via a standard equity pitch on Crowdcube, and as a result, funds raised from the sale of these shares are paid to the company.
Whereas with the DCO, the shares are existing shares, known as secondary shares, which are owned by existing investors. Therefore, the proceeds of the sale of these shares are paid to existing investors, rather than the company.
Another key difference is that DCOs will normally only be suitable for larger, later-stage companies.
DCO pitches will go through the same due diligence and completion process as standard equity pitches on Crowdcube.