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.