Crowdfunding & Peer-to-Peer Comparison

Crowdfunding & Peer-to-Peer

Crowdfunding is predicted to be worth $95 billion by 2025. The Investment Superstore Crowdfunding Comparison tool to presents the different options and platforms available to investors in the UK who want to gain exposure to this growing area of finance. 

 

Below you will find a selction of the UK’s leading platforms offering both equity and debt crowdfunding.

Crowdfunding may not be suitable for all investors, seek independent advice where necessary

Crowdfunding & Peer-to-Peer Platforms:

Seedrs

seedrs logo
  • Notable Deals:
  • FreeAgent - £1,015,350 – 3.26% equity
  • Maily - £352,270 - 26.05% equity
  • Chapel Down - £3,953,819 - 14.11% equity
  • Main Features:
  • Highlights the valuation of pitching companies
  • Backed by Lord Rothschild & Neil Woodford
  • UK's longest running Crowdfunding platform
  • Regulation:
  • FCA authorised since May 2012
  • All investment involves risk. You may get back less than you invested. Seek independent financial advice before undertaking any investments. Investment Superstore will accept no liability for action taken by any user of this website.

Peer Funding

  • Products
  • Peer-to-Peer business lender, opportunities range from 30 days to 60 Months.
  • Invoice Finance, Property Bridging, Property Development and Business Lending
  • Main Features:
  • Innovative Finance ISA
  • Invest from £25.00
  • Regular investor events
  • Estimated returns between 6%-12%
  • Regulation:
  • Fully FCA authorised FRN: 668078
  • Estimated returns are a forecast and not a reliable indicator of future results. All investment involves risk. You may get back less than you invested. Seek independent financial advice before undertaking any investments. Investment Superstore will accept no liability for action taken by any user of this website.

Crowdcube

Print
  • Notable Deals:
  • Camden Town Brewery - £2,750,860 – Funded in 30 days
  • Eden Project - £1,500,000 – Funded in 5 hours
  • Fantoo - £216,460 – Funded in 61 days
  • Main Features:
  • Regular investor events
  • EIS Fund managed by professional fund manager
  • Invest from £10.00
  • Three ways to invest: Equity, EIS Fund and Mini-Bonds
  • Regulation:
  • Gained own FCA authorisation in October 2014
  • All investment involves risk. You may get back less than you invested. Seek independent financial advice before undertaking any investments. Investment Superstore will accept no liability for action taken by any user of this website.

Crowd2Fund

crowd2fund
  • Notable Deals:
  • Ruroc –£167k- 10% APR
  • Giffords Hall - £28k – 2.4% equity
  • House of Modern Living - £167,000 – 10% APR
  • Main Features:
  • 0% platform default rate
  • Operates an exchange for crowdfunding investments
  • SEIS/EIS investments available
  • Regulation:
  • FCA authorised since October 2014
  • All investment involves risk. You may get back less than you invested. Seek independent financial advice before undertaking any investments. Investment Superstore will accept no liability for action taken by any user of this website.

Angels Den

angels-den-
  • Notable Deals:
  • Mous - £150,000 – July 2015
  • NY Slice - £300,000 – December 2014
  • North Sea Recovery - £165,000 – March 2014
  • Main Features:
  • Angel-led crowdfunding platform – funding available after lead ‘anchor investor’ is secured
  • Over 90% of funded companies are still trading
  • 170 funded businesses
  • Regulation:
  • FCA authorised since July 2014
  • All investment involves risk. You may get back less than you invested. Seek independent financial advice before undertaking any investments. Investment Superstore will accept no liability for action taken by any user of this website.

Crowdstacker

crowdstacker
  • Notable Pitches:
  • Quanta Group – P2P Loan – 6.8% per annum
  • Main Features:
  • Debt Crowdfunding
  • Focus on property lending
  • Senior management has a strong financial background
  • Regulation:
  • FCA authorised since June 2015
  • All investment involves risk. You may get back less than you invested. Seek independent financial advice before undertaking any investments. Investment Superstore will accept no liability for action taken by any user of this website.

Market Invoice

  • Notable Deals:
  • £618,435,005 volume
  • £59,396 average invoice
  • 10.65% historic yield
  • Main Features:
  • Invest in the invoices of UK businesses
  • 7%-11% yields
  • No-lockups, ability to withdraw uninvested funds at any time.
  • Low correlation to traditional asset classes
  • Regulation:
  • Sophisticated and professional clients only
  • All investment involves risk. You may get back less than you invested. Seek independent financial advice before undertaking any investments. Investment Superstore will accept no liability for action taken by any user of this website.

Syndicate Room

  • Notable Deals:
  • Warwick Audio Ltd - £1,115,973 raised
  • Music Gurus - £162,360 raised
  • Dab Gaming - £577,675 raised
  • Main Features:
  • First crowdfunding platform to enable investment in public companies
  • Special access to AIM companies' placings
  • 'Investor-led' funding scheme
  • Emphasis on experienced Angel involvement
  • Regulation:
  • Sophisticated and professional clients only. FCA registered since March 2014.
  • All investment involves risk. You may get back less than you invested. Seek independent financial advice before undertaking any investments. Investment Superstore will accept no liability for action taken by any user of this website.

Crowdfunding Calculators:

What is Crowdfunding?

Crowdfunding is an alternative method of financing that has been growing ever popular in recent years as entrepreneurs and investors look past traditional methods of financing and investing.

As the name suggests, crowdfunding involves a group of investors providing the funds to finance a business. Investors provide capital in two ways; debt and equity.

Equity

Equity crowdfunding provides the investor with shares in the company and investors can often benefit from tax incentives such as the Enterprise Investment Scheme (EIS) or the Seed Enterprise Investment Scheme (SEIS). Investors in equity crowdfunding profit from dividends and on the sale or takeover of the company.

Debt

Debt crowdfunding is lending money to a business in return for interest payments. The principle is returned to the investor at the end of the loan period. Unlike equity crowdfunding, when you debt crowdfund you do not own a proportion of the business.

Rewards

Many companies will offer rewards to investors such as free products or services and special discounts.

What is Peer-to-Peer Lending?

As the name suggests, Peer-to-Peer Lending involves individual investors loaning money to other individuals and receive interest payment as compensation.

Risks of Crowdfunding & Peer-to-Peer Lending

The risks of equity crowdfunding include long periods of waiting for an initial dividend and the risk of total loss of capital if a company fails. Platforms say that crowdfunding is only suitable for High Net Worth Individuals and Sophisticated Investors as well as advocating good levels of diversification. 

Loans of any type involve risk of default, to manage these risks platforms conduct checks on individuals and companies and the interest rates paid reflect these risks.