The business-focused peer-to-peer lending platform plans to lend £40m over the coming year.
Crowd2Fund has launched a funding round as the business-focused peer-to-peer lending platform plans to loan £40m this year.
The London-based firm, which allows investors to lend to entrepreneurs, said it has so far raised £400,000 in the first week of a cash call that is targeting selling £2m of shares to private investors.
The firm business says its investors can hand-pick every loan they invest in, and claims they earn an average tax-free annual return of 10.46 per cent, before fees and bad debt.
Crowd2Fund said last January it plans to raise £30m over the next 24 months through an ambitious series of fundraises. This is the third equity call for the peer-to-peer lender, which was launched in 2014.
Chief executive and founder Chris Hancock, said: “We’re looking to lend more than £40m over the next twelve months, which will bring our company valuation up to almost £70m. By 2022, we are targeting £3bn in lending, generating £180m in revenue.”
During its fundraising it said it plans to grow its private ownership base from 121 high net worth individuals to 450.
Over the coming year the business said it will launch a number of new features such as an opt-in ‘contingency fund’ for investors, as well as a more active role in the recovery of bad debt.
Hancock said his firm is “different” from other platforms or banks because “we give the investors ultimate control of their money because they select loans based on their own due diligence”.