How do I update my email address?
You can update your email address and other account information by selecting ‘Account’ in the top right drop-down and then select ‘Change account settings’.
What is Co-Investment?
Co-investment enables retail investors to access opportunities alongside professional investors (such as angel investors) and institutional private equity funds, to the mutual benefit of all.
How does GrowthFunders work?
Investment opportunities are brought forward by a lead sponsor.
GrowthFunders then works with the entrepreneurs to ensure their business is investment ready, structured correctly to accept investment from the crowd together with co-investors and SEIS and EIS scheme compliant, where possible.
GrowthFunders conducts thorough due diligence on all investment proposals, alongside some of the UK’s leading institutional funds.
Deals are then listed for up to 90 days, during which time investors view the investments and can invest anywhere from £100 into their chosen company. Once the pitch has ended, due diligence is carried out and the legal documents are drafted.
Investors then transfer their money in our FCA authorised principles client account. Once due diligence is completed, the transaction will be complete.
*No money will exit your account until deal reaches completion*
Shares are purchased in your company in exchange for the agreed equity investment and assuming due diligence goes to plan then the process will take around 45 days.
Is GrowthFunders regulated by the FCA?
Yes. GrowthFunders is a trading name of Growth Capital Ventures Ltd.
GrowthCapitalVentures Ltd is an appointed representative of Linear Investments Ltd (“Linear”) which is authorised and regulated in the United Kingdom by the Financial Conduct Authority (“FCA”) FRN 537389.
What is the GrowthFunders online investing platform?
GrowthFunders is an equity based co-investment platform, which provides unique investment opportunities and allows angel investors to co-invest alongside some of the UK’s leading professional investors and institutional funds. We specialise in:
- High Growth SME’s
- Clean Energy
- Real Estate
It’s a great way to invest in ambitious businesses with high growth potential. Many of the investment opportunities listed on the GrowthFunders platform are SEIS and EIS compliant, meaning that investors can benefit from a range of generous tax reliefs.
What are the listing fees?
It is completely free to list your business on the GrowthFunders platform.
Our aim is to reduce the costs of raising capital, particularly for start-ups and early stage companies. We want to make the process more streamlined and cost-effective, allowing you to spend more time growing your business. Our fees are purely success-based and are outlined below. These costs are deducted from the funds raised via the GrowthFunders platform.
1. 5% of the total fund raise
2. £1,750 to cover standard legal costs
3. 0.5% Investment Processing Fees (via GoCardless)
Can pitches raise more money than the target amount?
Yes, it is possible for your pitch to raise more than the specified target amount. This is called overfunding, which enables a higher target amount to be set and the entrepreneur then needs to capitalise on the demand. The equity on offer will remain at the same rate. Let’s assume you are looking to raise £100k, giving away 10% equity stake, and you can execute your business growth plan with this amount of funding.
However, if your business has received a lot of interest and ends up being overfunded by £100k, giving you £200k of funding. The proportion of equity remains the same, meaning you would be giving away 20% equity stake, keeping the post money valuation the same also.
What happens if the target amount is not reached?
How do I register as an entrepreneur?
Click here to Register, its free to join and youll have access to some excellent resources that will help you raise finance to grow your business.
What is an unlisted investment?
Unlisted investments are investments into shares of companies that are not traded on the open market. The companies in question are often high growth SME and need investment to take their business to the next level. As they are considered high-risk by traditional financial institutions, finance can be hard for them to obtain. One solution is private equity from individual investors and funds invested directly in the companies.
What is G Ventures?
G Ventures is our exclusive offline investor network of private investors looking to make substantial investments in to deal opportunities.
Are there any fees when investing through GrowthFunders?
There are no upfront fees when investing in businesses on the GrowthFunders platform. If you are investing more than £5000 into a business, this will be a direct investment and therefore no fees are charged.
If you are investing smaller amounts (£100 – £5000) you will then invest in that business via a nominee structure. The purpose for this is to maintain your investor rights and ensures you have the same level of protection on your investment as those investing larger amounts directly.
It is important to note that the charges for investing via a nominee structure is purely suceess-based at 7.5%.
For example, if you invest £1000 into a company (which subsequently becomes successfully funded), and make a 10x return on that investment, you will receive £9000 in returns – GrowthFunders will then charge 7.5% on your return. If the company pays dividends of £100 per year, GrowthFunders would receive 7.5% of that per year also.
Have the pitches on GrowthFunders been approved in any way?
Yes, all pitches are reviewed by GrowthFunders.
Part of what makes our online platform different to some of the others operating out there, is that we offer an end-to-end solution to raising finance and carry out thorough due diligence on all investment proposals. The first part of this structure is the Pre-fund stage, which is where we work with companies to help get them investment ready.
All businesses listed have high growth potential & many are SEIS / EIS compliant.
How can I mitigate risk on my investments?
Build a portfolio
The best way to maximise the chance of investing in a successful company is by building a portfolio of a range of investments throughout all sectors and sizes of businesses.
Conduct due diligence
It is important that as an investor, you take time to research and understand each business you plan on investing in. Read their business plans, financial reports, exit strategy, intellectual property, team information and current achievements to make an informative decision on whether this investment is right for you. Can you see yourself making a return from this investment in the future? All investments listed on GrowthFunders are vetted to ensure the businesses are capable of high growth in the future. However, all businesses are at risk of failure.
Anticipate follow on investments
The majority of companies that receive investment through GrowthFunders will need additional rounds of funding in the future. This may already be outlined in their financials or their business plan, so it is important to read these thoroughly.
Be an active investor
It is important that the investor and the entrepreneur keep in touch throughout the investment process and post-investment. GrowthFunders ensure that all entrepreneurs issue their investors a quarterly report on how the company is performing and what their investment has been worth so far. This serves to gives you, the investor, peace of mind that your investment was truly worthwhile.