AltFi, the leading news and events brand in the alternative finance space, is raising money on Crowdcube to fund its next phase of growth. AltFi is looking to raise £250k in exchange for 7.69 per cent in the equity of the company. The campaign is being hosted by Crowdcube, the largest platform in the equity crowdfunding sector by cumulative origination.
The EIS-eligible round is being staged in order to fund AltFi’s next expansion phase, as it seeks to take on the US market by opening a foreign bureau in New York. Proceeds from the round will also be used to launch a new wire service and to scale up the firm’s digital marketing offering.
AltFi already provides coverage of the alternative finance sector on a global level, with a particular focus on the UK, Europe, US and Australasia. The firm’s signature event – the AltFi Summit – has been staged three times in London, three times in New York and once in Sydney to date. In both its news and event offerings, AltFi has developed a reputation for high quality, in-depth coverage.
Its relationship with sister company AltFi Data, in which AltFi owns a minority stake, plays a major factor in fuelling that calibre of coverage. AltFi Data is the leading independent analytics firm in the UK marketplace lending space. The company also covers the equity crowdfunding space through its ground-breaking “Where are they now?” report. The second iteration of this study was published this morning.
The rationale behind the campaign is that AltFi’s growth will mirror that of the wider industry. The company anticipates sales of over £520k in the next financial year, and says that it does not foresee the need to stage further funding rounds, should the current campaign prove successful.
The targeted exit route for investors will be via trade sale. The company points to past media acquisitions – such as Dow Jones' acquisition of eFinancialNews for £26.1m in 2007, and Bloomberg’s acquisition of New Energy Finance – as precedents for its strategy.
“We believe our growth strategy and brand positioning will make us an attractive proposition for media conglomerates looking to add players in this space as the sector becomes important in the mainstream media and a vital economic segment in the global economy,” said executive director David Stevenson.
Investments in the AltFi round can be made with as little as £10, and all investments will be for A Ordinary shares in the company.