Innovative Finance ISAs offer an exciting alternative investment channel, helping you diversify your portfolio and maximising your £20,000 tax-free ISA allowance — all while supporting high performing British entrepreneurs.
Finding the right businesses for your portfolio without skimping on the details you need to make an informed investment decision has always been a challenge. Crowd2Fund has the solution.
The ability to assess an entrepreneur’s capability to deliver, understand the vision of the business, and gauge the associated risks of investment has always been important when investing directly in private businesses. Historically, this wasn’t always simple. Until now, ISAs generally aggregate portfolios into a pooled fund, leaving you without transparencies traditional ISAs create a disconnect between you and your investments, erasing what makes investing interesting and enjoyable — discovering, selecting, and watching a business you believe in achieve success.
This disconnect between the business and the investor is part of the puzzle that Crowd2Fund CEO, Chris Hancock, has endeavored to solve. By offering a self-select Innovative Finance ISA investing platform, investors now have complete control of where their money goes.
“At Crowd2Fund, it’s crucial that we deliver as much transparent information about the businesses and investment opportunities as possible, empowering investors to make their own balanced investment decisions,” he says.
“We achieve this by giving you a direct connection to the entrepreneurs and businesses; via online messaging, access to their LinkedIn profiles, and transparent financial accounts that allow you to better understand the business. At the same time, all listed businesses are subject to a highly robust credit assessment and due diligence process before they are presented to investors.”
Through their revolutionary technology and dedicated team, Crowd2Fund has opened up this new market. They also demonstrate a solid track record of success; its community of over 12,000 investors has backed more than 500 businesses to date — with almost £40m now invested via the platform. The average lending rate before fees and bad debt is 10.63% APR, tax-free.
Choosing the businesses you invest in gives you an avenue to grow your wealth tax-free, and an opportunity to make an impact. It allows you to create change in markets you are passionate about and feel connected with, and even get additional rewards in return. This might be by investing in Cubana Restaurants, founded by one of Crowd2Funds Hero Entrepreneurs, Phillip Oppenheim, to complete the final phase of their roof terrace development. Or in Planks Clothing, an eco-friendly skiwear brand – investors were offered 14.5% APR tax-free and 30% discount on their ski gear for this season.
The Crowd2Fund platform is built with state-of-the-art technology to mobilise risk capital for entrepreneurs and deliver better returns for investors without the need for a middle man. It’s easy to get set-up as an IFISA investor via the mobile application, and you can even sell your investment to another investor within the community, via The Exchange, if you need access to your capital.
“It’s for people who want to engage with investing and have more control,” asserts Hancock. “Rather than simply investing based on the rate of return, they’re choosing to support real entrepreneurs and growing British businesses; the lifeblood of the economy.”
Earnings from investments can vary between 6% – 15% annual return before fees and bad debt. Past performance and forecasts are not reliable indicators of future results. Tax treatment of any of the investment offers will depend on the individual circumstances of each investor and may be subject to change in the future. When investing directly into private businesses, your capital invested is not covered for compensation in the event of a loss by the Financial Services Compensation Scheme.
For more information and to download our IFISA Guide 2020: