FundTheGap, a new equity crowdfunding platform, has launched their service for start-ups and small businesses in the UK. They are looking to offer a seamless fundraising channel for businesses looking to raise up to £2m ($3.1M) of investment. The site is designed to bring together start-ups and small businesses seeking funding from investors in a tough economic market.
As part of their funding approach, FundTheGap will always meet the management teams behind every single venture before accepting a pitch onto the platform. Once a business has passed the screening, it will have the opportunity to raise up to £2m in equity. The business will also benefit from a co-investment by the FundTheGap team of between £500-£50,000.
On the investor side, before being accepted onto the FundTheGap platform, potential investors must demonstrate they understand the risks of investing in start-ups and small businesses by completing a questionnaire or self-certifying as a high net worth individual or sophisticated investor.
business funding. During their collective experience they have secured over £500 million of investment. At a time when private investment is essential to the success of small businesses, FundTheGap intends on delivering this vital cash injection to small businesses which qualify.
Both investors and businesses will be able to communicate easily across their crowdfunding platform during the funding process and after investment is made.
Entrepreneurs can use the dashboard as a streamlined way to communicate with potential and existing shareholders – providing a valuable communication tool to keep investors up to date on progress.
Some investors may be able to take advantage of government investment incentives such as the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) – meaning investors may be able to get up to 78% of their investment back in tax relief.
“We have been watching the alternative funding space develop with interest”, stated Co-Founder Christian Elmes. “We are confident that FundTheGap will provide a complementary source of funds at a critical time for cash starved UK businesses.”
“As finance professionals we will not accept any investment we wouldn’t back ourselves, which is why we are committed to investing into every venture we accept onto the platform.” added FundTheGap Co-Founder, Derek Uittenbroek.