AxiaFunder Update: Overfunding in Private Mode, AxiaFunder to Open Public on March 9th

AxiaFunder, a  for-profit litigation funding platform that may provide non-correlated returns for investors, has sent over note indicating the securities offering will open to the public on March 9, 2020. AxiaFunder cruised past its £200,000 target on Seedrs while in private mode and is currently overfunding.

AxiaFunder is FCA regulated and it utilizes the ShareIn tech platform.

As it stands today, AxiaFunder has raised £214,880 for a 6.26% equity stake in the Fintech. AxiaFunder has a pre-money valuation of £3.2 million. According to the offering page, so far 58 investors have backed the crowdfunding round.

Regarding the platform, AxiaFunder reports over 380 existing HNW, sophisticated and institutional investors investing via the platform. Targeted annual returns are pretty good at 20% to 30%. AxiaFunder believes it has a first-mover advantage in the UK as there are currently no other investment platforms like it in the market.

To date, AxiaFunder has funded five cases from a case pool of 140 with the first case funded in December 2019. The case required over £500,000 and ended up winning generating a 43% net return in eight months for investors.

CEO and Founder of AxiaFunder, Cormac Leech, a well-known name in the Fintech world, said that as wealth inequality increases and the cost of litigation rises litigation funding is more critical than ever to the rule of law and a more inclusive society.

“AxiaFunder not only solves the issue of the shortage of capital for smaller commercial litigation cases but also widens access to justice. AxiaFunder provides an alternative solution to litigation funding enabling SMEs to access justice for deserving cases that otherwise would not progress. Policymakers at the Ministry of Justice are actively encouraging firms such as ours to provide the litigation funding, that they describe as the ‘lifeblood of the legal system’, as Government legal aid is gradually being withdrawn. AxiaFunder’s efficient use of capital and a lean operating model relying heavily on technology enables us to address the shortage of capital for smaller commercial claims, resulting in high margins and good case volumes.”

Leech emphasized that AxiaFunder’s returns are uncorrelated with equities, bonds etc., so no financial market gyrations.

“The lack of competition means that we have significant pricing power and high margins compared to other investment platforms and our aim is to use technology to manage a de-centralised case assessment approach which will enable the business to expand rapidly,”  he said.

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