City investors are getting an exchange to trade crowdfunded investments, as a crowdfunding marketplace launches today.
Crowdfunding platform Crowd2Fund is opening “The Exchange”, where investors will be able to sell off debt and equity investments and access their capital. It'll join the likes of InvestDen, which has also opened a secondary market for investments made across any existing platform, along with the loan-based exchanges run by Money&Co and ArchOver.
Crowd2Fund, which launched in late 2014, is an FCA-regulated platform specialising in revenue loans. But trading on the new marketplace won’t be limited to investments made on this platform – like InvestDen, it'll be opened up to exchanges of investments made on any crowdfunding campaign.
Read more: Who backs crowdfunding campaigns?
Peer-to-peer lending and crowdfunding is a booming part of London’s soaring FinTech sector. Crowdfunding campaigns grew a staggering 420 per cent in 2014, leaving the sector with growth of £1.74bn.
Chris Hancock, chief executive of Crowd2Fund, said investors not being able to exit investments to access their cash has been one of the biggest challenges for the growing crowdfunding sector:
The exchange will make this possible, for loans which might otherwise take years to repay or for equity which might not attain material value until a company is either acquired or floated on a stock exchange at considerable expense.