TheCarCrowd, a UK-based “passion asset” investment platform for cars, is set to close its equity crowdfunding campaign on Seedrs with nearly £300,000 raised. The funding round, which launched last month, has attracted more than 220 Seedrs investors.
As previously reported, TheCarCrowd claims it is building the UK’s first network platform for classic cars.
“We’re giving Petrol Heads everywhere the chance to unlock the potential in their existing classic or invest in a share of a car they have always dreamed of.And the kicker… a potential for a real financial return on your investment and, access to ‘money can’t buy’ events and experiences.”
TheCarCrowd further revealed that through its platform investors are able to buy shares in cars from just £20 and unlock the benefits of potential appreciation.
“Our target market is large. Using data from the FCA financial lives survey we estimate that 8 million Millennials want to invest more for their future, but they currently have no form of investments. Launched in Nov 2020, and now with over 620 registered investors demand has been strong. Our first vehicle funded in just 67 days.”
TheCarCrowd earns fees in three ways:
- Curation Fee – Up to 10% fee placed on each vehicle prior to funding to cover vehicle sourcing, provenance checks and storage costs
- In Year Revenue Fee – 20% of any income earned by the vehicle for paid work (such as film, tv, press, events or corporate appearances) Remaining 80% returned to the investors as dividends
- Disposal Fee – 20% of any appreciation taken as disposal fee with 80% then returned to investors as Return on Investment
TheCarCrowd is currently offering 8.83% in equity at a £2.3 million pre-money valuation through the investment round, which is set to close next week.
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