There are no upfront fees when investing in businesses on the GrowthFunders platform. The charges for investing are purely success-based at 7.5%*.
If you are investing smaller amounts (£100 – £25,000) you will invest 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.
If you are investing more than £25,000* into a business, this will be a direct investment but the fees remain as above.
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.
*Please note – fees and nominee structure sometimes vary by deal. Any variances from the above structure will be outlined in the offering Investment Memorandum, downloadable from the online pitch.