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Tinder for Equity Crowdfunding




By Ryan Weeks on 5th June 2015


Tendr – a mobile app aggregator of equity crowdfunding investment opportunities – is coming to a smartphone near you.

 

Tendr represents the meshing together of two distinct trends within the alternative finance space: the move to mobile devices and the proliferation of aggregators. We recently ran an article on the rise of mobile activity within the P2P lending space. Smartphones now serve as an extremely lucrative origination channel for the likes of Zopa and RateSetter, and their importance in attracting investor money is also on the up. We’ve not looked in detail at mobile usage within the equity crowdfunding space. But if all goes according to plan for Tendr, we may soon see a spike in mobile usage for the likes of Seedrs and Crowdcube.

 

Aggregation is a hot spot in every segment of the alternative finance industry. The race is on for designated bank referral point status. The British Business Bank has been fielding applications from various matchmaking portals – such as Funding Options and Alternative Business Funding – and will mandate a number of successful candidates over the coming months.

 

Business Agent and investUP are busily trying to crack the investor half of the aggregation equation. Both online portals possess a broader remit than the newly-launched Tendr, which will focus only on channeling investment into the equity crowdfunding space (for now). Business Agent allows for lending, equity investment, borrowing and fundraising. InvestUP facilitates investment into the alternative lending space as well as the equity sector.

 

Tendr plugs prospective investors into a feed of UK-based equity crowdfunding campaigns. Users swipe left or swipe right based on first impressions, in the style of the dating app Tinder. Tendr is not designed to facilitate snap investment decisions. Rather it intends to allow users to flag campaigns that take their fancy, in order that they might compile an assortment of potential investment opportunities. The platforms from which Tendr sources campaigns are Crowdfunder, Seedrs, Crowdcube, Angels Den, Funding Tree, InvestingZone and AngelList.

 

Lex Deak, Founder of the new app, offered comment:

 

“Tendr removes friction, thereby increasing efficiency in deal sourcing. It is a useful tool for investors who are currently having to access up to a dozen platforms individually, it is also a nice lightweight channel for entrepreneurs and the wider start-up ecosystem for staying abreast of trends and what’s hot.”

 

“As we grow we’ll be able to offer unsurpassed insight into how groups invest together and which deals are most popular. In the near future it will be the norm to invest in unlisted equities and alternative investments from your smartphone.”

 

As you can see in the image below, Tendr also allows users to refine search parameters, set up alerts, and generally keep on top of sector activity.

 

 

Tendr doesn’t have a business model to speak of at the moment, preferring first to focus on establishing some traction with users. The revenue model will ultimately be to take a cut of any transactions that the app enables – the standard referral fee model.

 

The Tendr team has already hinted at both geographical and product-based expansion. While the app will only be available in the UK initially, the idea of European expansion has already been floated. Mr. Deak outlined the potential for the inclusion of new products, while also shedding light on potential revenue streams for Tendr:

 

“As our numbers grow and we include a wider variety of alternative instruments, such as loans and property deals, we will charge a small percentage on transactions. We’re working on including tailored content for users in relation to their investment preferences which may open up an additional stream. Lastly we are collecting insightful data on the alternative finance sector, we will always make the majority of this data freely available but there may be a case for a cost for bespoke reports in the future.”

 

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