Crowd2Fund is is an automated peer-to-peer investment platform that allows businesses to raise capital from the general public.
Unlike many of the other crowdfunding platforms Crowd2Fund is fully regulated and also gives UK-based investors an additional tax break when they lend to businesses through a financial product called an Innovative Finance ISA (IFSA).
IFISAs allow companies to access fast, efficient and sizeable investments at scale from individual investors that can help support these businesses in achieving their growth plans. This means that UK-based investors can invest up to £15,240 per year through Crowd2Fund and get tax-free returns. Then, businesses pay their investors back via the platform and they earn all the interest, rather than a bank. Traditionally, and as it is still commonplace in the market, other crowdfunding based platforms will deploy investors’ funds via a third party institution before being invested into the business seeking financing – and this third party is either a bank or large fund. By eliminating this middle man (the bank), Crowd2Fund are unique in enabling investors to put their cash direct into the businesses they want to back. By going direct, this removes any additional fees for third parties, freeing up more available returns for the end investor. That means more money in your pockets.
Founded in 2014, Crowd2Fund brings together the peer-to-peer and banking credit due diligence approach, but with a crowdfunding methodology. Think of it like this – where most lending platforms are like Hotels.com, Crowd2Fund is like Airbnb.
In total, Crowd2Fund offers five types of finance to suit the specific needs of the business depending on their maturity, size and stage of financing; this includes a unique ‘Revenue Loan’ for slightly larger, more established businesses looking to take on debt financing. The Revenue Loan allows business owners to repay the loan as their company grows at scale. This provides startups with the flexibility to grow at an even faster pace – showing that peer-to-peer and crowdfunding aren’t just for small companies.
Uniquely with Crowd2Fund you can get the finance you need to grow your business, but also build a network of your own private investors, committed to supporting your business throughout its growth journey. On average Crowd2Fund campaigns attract 70 high net worth investors who can support with further rounds of finance or different types of finance. The high profile investor network of Crowd2Fund can also be a source for new customers.
And the platform provides more than just capital. As part of their offering, Crowd2Fund also equips businesses with their own bespoke marketing campaign for you to promote whilst the Crowd2Fund’s London team will also spread the message far and wide giving you the best chance to reach the broadest set of people that matter, generating even greater exposure for your business.
One recent example which benefited from a Crowd2Fund campaign is online retailer Ruroc. The UK-based company develops innovative sports helmets and last year raised debt-based financing via the platform totaling £150,000. Buoyed by the stimulus this generated and the success they saw, Ruroc returned to Crowd2Fund earlier this year, this time for equity-based financing, and raised an impressive £360,000 of equity investment.
Daniel Rees, the co-founder and CEO of Ruroc stated: “We are looking to accelerate our growth by partnering with Crowd2Fund to allow us to raise finance and extend our investor team to meet the demands of an increasing global customer base online.”
Crowd2Fund don’t just help the businesses on their platform achieve their targets for growth – the company has lofty ambitions for themselves. As the company grows from strength to strength with more businesses and investors coming on board every month, Crowd2Fund are looking at plans to build on the success of their London HQ and expand elsewhere in Europe (France is on the list) and further afield in Asia and Australia.
Whether you’re the CEO of a young company or a private investor looking to make smarter investments, Crowd2Fund has the answer – check them out!