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:

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.

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.

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.

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.

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.

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.

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.

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:

Pre-Money vs Post-Money Valuation

Crowdfunding Calculator: Price-to-Earnings Ratio

Crowdfunding Calculator: Price-to-Sales Ratio

Crowdfunding Calculator: Price-to-Book Ratio

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.

Crowdfunding & Peer-to-Peer Comparison