Crowd2Fund was one of the first peer-to-peer platforms to get regulatory approval for the innovative finance ISA (IFISA). In fact, it received full approval in March 2016, before the IFISA was even officially launched a month later.
The speed at which it received its approval was down to the fact that it had already been authorised by the FCA as far back as October 2014 (the year of its launch), whilst many peer-to-peer lenders still seek approval to this day.
Crowd2Fund ISA Overview
Crowd2Fund operates on the premise of providing investors with better value returns by connecting investors and borrowers directly, and effectively cutting out the banking middleman. It also works on the principle of making investment products available to the masses, not just the super-rich. Here are some of the things it’s achieved in its few years of existence:
- In 2014, Crowd2Fund attained membership at the Crowdfunding Accreditation for Platform Standards (CAPS) in a bid to ensure that it adheres to best practice crowdfunding
- In 2014, the business also became a member of Innovate Finance, a membership trade body, introduced to promote fintech innovation in the UK financial services
- Other associations the platform is a part of are the UK Crowdfunding Association, the Information Commissioner, the European Crowdfunding Association, UK Business Angels Association, the Westminster Crowdfunding Forum
- Crowd2Fund was the world’s first ever regulated five-model platform (i.e. offering five crowdfunding models under one roof) across both debt and equity crowdfunding investment vehicles
- In March 2016, Crowd2Fund welcomed the global market to its platform. The doors were opened for lenders from 163 countries around the world to register to invest in pioneering UK businesses
- In July 2016, the company launched ‘Smart-Invest’, an intelligent feature allowing investors to automate their lending
- Crowd2Fund’s statistics include: 0 per cent average late payment calculations from July 2015 to June 2016, a 0 per cent default rate since launch, estimated default rate of 0.5 per cent for 2017 and around £4 million has been lent since the platform’s launch
Crowd2Fund does not operate a reserve fund, however loans are typically secured against personal guarantees or business assets. In the event of a borrower defaulting on their loan, Crowd2Fund will work on behalf of the lender to recover as much of the debt as possible.
Target Rate8.7% p.a.
Updated: Friday, November 30th, 2018