By Aisling Finn on Thursday 4 June 2020
Assetz Capital is one of the few CBILS-accredited lenders and is hoping to tap into government funding itself.
The Manchester-based lender is hoping to attract a minimum of £500,000, with a target of £1m, through its fourth crowdfunding effort on Seedrs.
Stuart Law, CEO of Assetz Capital, told AltFi: “I think crowdfunding is better suited to our growth plans this year and we are looking to fundraise now because we have the advantage of the Future Fund to go with the Seedrs raise.”
“We’ve raised about £7m through Seedrs over the past three rounds, so it’s a natural step to go back to them, and it’s certainly the quickest way to receive funding.”
Loans provided under the Future Fund range from £125,000 to £5m and, specifically, the new programme is designed to match capital already being invested by VCs or angel investors.
To be eligible for the scheme, firms must have raised at least £250,000 in equity investment from outside investors in the last five years, and it is up to the investors to apply for the funds as opposed to the businesses.
Law went on to stress the speed required to access the government’s Future Fund which has been deployed to help businesses unable to access other government-backed loan schemes.
“The Future Fund won’t be around forever,” Law told AltFi, “You may not get any funding if you leave it too long, so that’s why we wanted to get started straight away and instead of starting from scratch with other investors, we decided to go to our existing investor base.”
According to Law, Assetz Capital has helped to build every 1 in 100 homes in the UK for the past two years running.
The lending platform also has lent out over £1bn, £600m of which was directed towards the housebuilding industry.
With the latest funding, Assetz Capital is also hoping to support its non-CBILS lending and increase the company’s headcount.