Investing via a DCO won’t make any difference to investors from a legal, regulatory or contractual perspective, as:
- You will end up owning shares in a company, which will be held on trust for you by Crowdcube Nominees Limited
- The payment for your investment will be taken in the same way as a standard equity pitch
- You will be bound by the company’s Articles of Association / Shareholders Agreement
- The process for completing your investment, which you can read about here, will be the same
- These are still high-risk investments, despite generally being in later-stage companies, and cannot be easily sold
It’s also worth highlighting that DCOs will normally only be suitable for larger, later-stage companies, so there may be more publicly available material such as company filed accounts, press articles and other public resources for investors to conduct their own due diligence.