Crowdcube to launch first managed fund for
crowdfunded equity investments
Investors can now let an experienced fund manager find and manage their equity investments in start-ups and early-stage businesses
Exeter, UK – 27 January 2014 – Crowdcube, the world’s largest equity crowdfunding platform, has launched the first managed investment fund for people who want to buy shares in start-up or early-stage British businesses. The Fund will enable them to build a portfolio of equity investments selected by a professional fund manager from those businesses listed on Crowdcube.
The Crowdcube Venture Fund will be managed by Strathtay Ventures, a wholly owned subsidiary of the established, stock-market quoted Braveheart Investment Group (‘Braveheart’) as part of a partnership agreement signed this week. Braveheart currently has around £120m of funds under management across various regional and national funds.
The Fund has been designed to suit people who want to invest in start-up and early stage businesses but perhaps lack the resources and/or time commitment to fully research and review pitches, carry out their own due diligence, and build structured, balanced portfolios.
Darren Westlake, CEO and co-founder of Crowdcube, comments: “Our aim is to provide everyday investors with choice. Our 57,000 investors can already select businesses that appeal to them by the sector, amount of funding sought or a number of other criteria. Now we’re giving them the option to invest in a fully managed fund. This will appeal to investors who love the idea of equity crowdfunding as part of their investment strategy but don’t have the time, or inclination, to fully research opportunities and create their own diversified portfolio.”
The Crowdcube Venture Fund will typically invest in businesses which are registered for EIS/SEIS tax reliefs.
The minimum individual subscription in the fund is £2,500. In addition, Investors can top-up their investment over the two-year initial investment period. Investors eligible for the fund pay an annual management fee and an initial set up charge.
The Crowdcube Venture Fund aims to build balanced portfolios for investors who can expect returns to come from portfolio companies by way of trade sales, IPOs and licensing deals.
Geoffrey Thomson, Chief Executive of Braveheart, said “We are excited to link up with Crowdcube and this new approach to investing. There are a large number of investors who like the crowd funding concept but who, for one reason or another, find the DIY route problematic. We hope they find this new initiative of interest.”
Crowdcube has more than 57,000 investors in the UK and is named one of the hottest FinTech firms in Europe.
### Ends ###
NOTES TO EDITORS
As the world’s first equity crowdfunding platform, Crowdcube enables everyday investors to fund British businesses in return for a share in the company. Since February 2011, more than 57,000 savvy investors have registered with Crowdcube, helping to raise more than £17m for 90 UK businesses. The ground breaking model lets entrepreneurs showcase their investment opportunity online and bypass the traditional business angel, venture capital or bank route, giving them more control and access to more investors.
Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. Crowdcube is authorised and regulated by the Financial Conduct Authority (No. 572026).
About Braveheart Investment Group plc
Braveheart provides financing services for small and medium sized enterprises (SMEs). For company’s looking to raise money, it provides:
- · Equity Capital. This form of financing is typically long term and is usually appropriate for fast growing businesses or early stage companies. Equity financings will be considered where the individual investment, or the investment arranged, is a maximum of £2m although participation in larger financings as part of a syndicate is also possible.
- · Debt finance. Short to medium term and for companies with cash flow to service the loan. The unit size for this type of finance is up to £1m. Junior debt, which is unsecured but linked to an equity instrument, is usually provided.
The money invested comes from a variety of sources (see below) and is sometimes linked to particular geographical locations.
For investors, Braveheart provides a one-stop shop service to those in one of the following groups who are looking for exposure to SME investments:
- · High Net Worth (HNW) individuals looking to build tax efficient Enterprise Investment Scheme (EIS) and Seed EIS portfolios;
- · Family offices and private sector institutions;
- · The Public Sector.
Investors can choose between investment types ranging from self-build portfolios, to a full fund management service.
For further information please contact:
Luke Lang, Marketing Director and co-founder at Crowdcube
Telephone: + 44 (0)1392 241319
Geoffrey Thomson, Chief Executive, Braveheart Investment Group
Telephone: +44 (0) 1738 587555
Crowdcube’s PR Consultancy, Eureka Communications
Braveheart’s Financial PR Consultancy, Allerton Communications
Tel: +44 20 3137 2500