Interested in generating returns of 20% to 30% per year? Axiafunder may be for you. The digital platform that crowdfunds high-quality litigation lawsuits claims to be able to provide outsized, non-correlated returns for investors.
Current investment opportunities listed on the platform include cases alleging commercial fraud, professional negligence, breach of contract and more. A featured case, a VAT dispute for a Jersey-based firm, predicts an 88% per annum return if the case settles and a huge 223% return if the case goes to trial. Not too bad.
Founded in 2016, Axiafunder is led by Cormac Leech once a high profile analyst that covered the Fintech sector and now a Legaltech/crowdfunding entrepreneur.
If you are not interested in backing a lawsuit you have another option. You can purchase equity in the startup as Axiafunder is raising £200,000 on Seedrs right now.
As it stands today, Axiafunder has raised £169,280 from 35 different investors. Axiafunder is selling a 5.85% equity stake in the company at a pre-money valuation of a £3.2 million.
The offering page states that commercial litigation funding was once the realm of hedge funds and other private institutions. Today, retail investors (sophisticated/HNW) may take advantage of financing lawsuits and benefit if the case is successful. It is an interesting pitch.
To date, Axiafunder has financed £684,000 from 355 registered investors. The first case to win a case generated a net return of 43% in 8 months. Of course, if the case is lost investors get zero. Axiafunder states that it is highly selective in which cases it chooses to fund thus improving the overall investment odds.
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