Our risk and due diligence team are dedicated to assessing and hand-picking all businesses we list. Different types of investment come with different levels of risk and reward. It’s important to diversify your investments and spread the risk across a range of opportunities. With Crowd2Fund you can build a balanced portfolio with five different ways to tailor your investments to fit your needs.

Understand our levels of return

Lower risk
and return
Higher risk
and return
  • Donations icon

    Donation

    With donations, investors are primarily contributing to a great cause. There is no promise of any form of return, although the company may offer a tangible reward in exchange for the donation. There is of course a risk that these Rewards may not materialise, although Crowd2Fund’s Terms and Conditions stipulate that campaign creators are legally obliged to distribute a promised reward. Any legal actions investors may choose to take will be at the expense of the investor, as Crowd2Fund is unable to guarantee any rewards offered by a project.

    If a campaign is unsuccessful in reaching its funding target, contributing investors will be refunded their contribution.

    Some opportunities listed will be for social enterprises and will not provide a tangible reward. Crowd2Fund makes efforts to verify that all campaigns are genuine, by contributing to a campaign investors acknowledge that such authenticity cannot be guaranteed.

    For more details, please see our Terms & Conditions.

  • Loans icon

    Lending

    Our monthly-repayment loans ensure that an element of your investment plus interest is repaid every month, reducing the risk of loss to the investor with every repayment.

    Crowd2Fund’s dedicated team of credit analysts review check the creditworthiness of all businesses before they are accepted onto the Crowd2Fund marketplace. Risk ratings for each business are provided by Equifax, although ultimately it is the responsibility of the investor to decide which businesses they consider appropriate for investment.

    Whilst we take our responsibility to mitigate risk very seriously, investors should understand that every business is subject to potential difficulties and may not be able to repay some or all of its debt. In the event of a default, Crowd2Fund will work on behalf of the investor to recover as much of the debt as legally possible, including enforcing director’s personal guarantees. Nonetheless, investors acknowledge upon pledging that there is a potential to lose some or all of their capital.

    Some crowdfunded loans do not get repaid. In addition to potential losses, investors should consider the impact of Crowd2Fund’s management fees and tax implications.

    Crowd2Fund levies a management fee of 1% against all repayments to investors. This ensures that investors are only charged for investments which are successfully repaid.

    Interest is paid back to investors pre-tax and therefore any interest generated from investments should be declared to HMRC. It is the responsibility of the investor to assess and remit their obligations to HMRC.

    For more details, please see our Lending Terms & Conditions.

  • Revenue icon

    Revenue

    As with other funding models, Revenue Loan investments come with the risk of loss in the event that the loan isn’t repaid. Businesses who borrow using a Revenue Loan are generally earlier-stage than those borrowing with standard Loans, and are given more flexibility for their repayments.

    This means that whilst investors can expect to receive an interest payment every month, the amount of capital repayment will fluctuate depending on the performance of the business. It may take longer than projected to be fully repaid, but the opposite may also be true.

    Revenue loans are only offered to businesses which are generating profits, although past performance is not a guarantee of future results. Interest rates for Revenue Loans are higher than standard Loans to reflect the flexibility of repayments and the increased risk of investing in earlier-stage businesses.

    Crowd2Fund’s dedicated team of credit analysts review check the creditworthiness of all businesses before they are accepted onto the Crowd2Fund marketplace. Risk ratings for each business are provided by Equifax, although ultimately it is the responsibility of the investor to decide which businesses they consider appropriate for investment.

    Some crowdfunded loans do not get repaid. In addition to potential losses, investors should consider the impact of Crowd2Fund’s management fees and tax implications.

    Crowd2Fund levies a management fee of 1% against all repayments to investors. This ensures that investors are only charged for investments which are successfully repaid.

    Interest is paid back to investors pre-tax and therefore any interest generated from investments should be declared to HMRC. It is the responsibility of the investor to assess and remit their obligations to HMRC.

    Risk level and Interest rate

    It's important to understand that the product and level of risk is indicative and also not tied to interest rate. Investors ultimately need to make their own decisions when making investments using the information Crowd2Fund provides.

    For more details, please see our Terms & Conditions.

  • Bond icon

    Bonds

    Bonds are generally offered to businesses undertaking project work, including property development. As these are interest only loans and the debt is repaid at the end of the term, there is an increased risk of default without repayment compared to a standard loan. For this reason, Bonds generally come with an increased rate of return to investors compared to Loans.

    Crowd2Fund’s dedicated team of credit analysts review check the creditworthiness of all businesses before they are accepted onto the Crowd2Fund marketplace. Risk ratings for each business are provided by Equifax, although ultimately it is the responsibility of the investor to decide which businesses they consider appropriate for investment.

    Some crowdfunded loans do not get repaid. In addition to potential losses, investors should consider the impact of Crowd2Fund’s management fees and tax implications.

    Crowd2Fund levies a management fee of 1% against all repayments to investors. This ensures that investors are only charged for investments which are successfully repaid.

    Interest is paid back to investors pre-tax and therefore any interest generated from investments should be declared to HMRC. It is the responsibility of the investor to assess and remit their obligations to HMRC.

    For more details, please see our Terms & Conditions.

  • Equity icon

    Equity

    Equity investing is the highest level of risk and can give the highest return if the company is successful. You purchase and own part of the company. Risk can be offset through generous tax incentives.

    EIS / SEIS and tax considerations

    There are tax implications to making investments, it’s the responsibility of the investor to declare to HMRC any profits made by investing with Crowd2Fund. Many of our equity investments are EIS or SEIS eligible, which allows the investor to offset their investment against tax. More information on EIS/SEIS tax relief

    Your influence

    It's important to understand your voting rights as an equity investor. Unless you’ve bought upwards of 10% of the business, you will have no direct influence in the running of the business. However, we make it easy and encourage businesses to update investors regularly on progress.

    Ability to sell your shares

    Shares bought in Crowd2Fund businesses cannot normally be sold easily. They're unlikely to be listed on a secondary trading market, such as AIM, Plus or the London Stock Exchange. This means the best and most likely way to realise your investment, will be from the eventual sale of the business, or listing on an exchange, the timescale of which is not guaranteed.

    Getting your investment back

    Earlier stage companies do not normally pay dividends from their profits as its good for growing companies re-invest their profits. Companies generally start paying dividends as they get more mature. It is most common that investors will generate returns through a trade sale or when the company sells on the stock market.

    Further rounds of investment

    Dilution occurs when a company issues further shares. This means that proportionately, the investor will own a reduced percentage of the total business, and may dilute voting rights and dividends, if any exist. In most cases additional investment should increase the value of the overall company, and is done with the intention of increasing value to shareholders.

    Your rights as an investor

    Shares often come with different rights and levels of control. If you're at all unsure which rights are afforded by an investment, consult the business plan or contact the business for clarification.

    For more details, please see our Equity Terms & Conditions.

    Become an investor

Tip: Build a diversified investment portfolio

Investments may offer attractive returns, but there’s always a chance you could lose your capital. We recommend that you invest in a number of businesses to spread your risk.

General risks

Loss of capital

You may lose your investment: if a business fails, neither the company nor Crowd2Fund will repay your capital. You should only make investments with money you can afford to lose. Early-stage companies and start-ups are statistically more likely to fail. Indeed, most do. If you wish to take less risk, consider investing in more mature businesses with good credit and dividend histories.

Past and forecast performance

Past performance should not be seen as an indication of future performance. Likewise, any future predictions or forecasts provided by companies are not guaranteed and should not be seen as an indication of future performance.


For more details, please see our Terms & Conditions

Financial Services Compensation Scheme (FSCS)

You will not be eligible to claim compensation under the Financial Services Compensation Scheme for losses incurred from investments of any type made through Crowd2Fund.

Call us on +44 203 507 0073
for more information

Risk warning

Investments like these involve risks including loss of capital. Please see our risk section before making an investment decision