Crowd2Fund Launches Self-Crowdfunding Campaign Seeking £2 Million

Investment crowdfunding platform Crowd2Fund has launched their third equity offering providing outside investors the opportunity to own shares in the company. Crowd2Fund says it hopes to grow its private ownership base from 121 high net worth individuals to 450.

According to the campaign page, Crowd2Fund is offering a 5.7% equity stake at a pre-money valuation of £35 million. So far, £440,000 has been raised from 47 investors.

Labeling itself one of the “purest P2P platforms on the market today,” Crowd2Fund claims their platform grew over 300% year over year. Investors using Crowd2Fund have earned 10.46% before fees and bad debt claims Crowd2Fund. Currently, as of January 2nd, Crowd2Fund reports 3.58% of loans are in default and 0.35% of loans have been written off. Crowd2Fund provides a statistics page where users may view overall site performance.

CEO and founder, Chris Hancock, says he has big plans to increase the company’s value in the year ahead:

“We’re looking to lend more than £40 million over the next twelve months, which will bring our company valuation up to almost £70 million,” claims Hancock.

He predicts that by  2022, Crowd2Fund will generate a lofty £3 billion in lending, generating £180 million in revenue.  Crowd2Fund aims to lend £40 million over the next 12 months, generating £2.4 million in revenue, valuing the business at £68m by the end of 2019 based on a 28x revenue multiplier valuation.

The offering has applied for the Enterprise Investment Scheme (EIS) which would be good for investors who may get 30% of their invested funds back as tax relief.

Future features on the platform include an opt-in “contingency fund” for investors, as well as a more active role in the recovery process for poorly performing loans.