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Thought Leadership
crowdfunding platform in March, offering bonds secured
on a business’ existing, operational assets. Over the six
months since March, we have launched a further six bonds.
We are delighted to have raised over £12 million to support
the growth of smaller UK businesses, predominantly in the
renewable energy space. To date the bonds issued have
offered between 5% and 7% returns over 1-2 year terms
and have attracted more than 700 investors.
Key considerations around
crowdfunding investment
There is no such thing as a ‘typical’ crowdfunding investor
given the scope of the sector and the variation in the
risks associated with each specific crowdfunding raise.
There is a world of difference between an investment
in an early stage business that has yet to prove it can
generate revenue (never mind profit) and an investment
in mature, established or asset-backed businesses. With
any fundraise, there are some key questions that need to
be answered:
Where is the money raised going – is it going to a person
or a company?
• How well established is the company, and what is the
risk associated with the actual end asset?
• What type of vehicle is being used – is it equity or a
bond, secured or unsecured, junior or senior debt?
• And what happens if things go wrong?
Finally, the platform it sits on and what that platform does
to protect investors needs to be explored. Whether they
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