3rd November 2023
This year we celebrated our 10th year anniversary and with you, we’ve funded more than 750 UK businesses and entrepreneurs with around £50m in investment capital exclusively from our community of private investors. Investors have earned over £7m in interest with an option to earn tax-free through their IFISA’s. Together, we’ve created 1000’s of jobs and helped boost the UK economy.
Reboot Britain offers you an exciting opportunity to help bring the UK economy back to life during a challenging time, while earning interest and gives you the opportunity to own shares in the platform's long-term success.
What have we been working on?
Over several months we’ve been working hard to grow the team, improve the processes and enhance the systems in preparation to scale. In June 2022, we established a new Board of Directors to offer better oversight and management. The new directors have helped improve corporate governance at the firm.
- New growth capital - To finance the recent hires and upgrades to the platform, the company recently secured significant amounts of private investment from a major shareholder to support operational and capital expenditure and drive the platform towards profitability.
- £4.3mn of new loans were issued in the year to April 2023. This remained consistent with the prior year despite a reduction in marketing drive during a period of internal restructuring. The 36-month average interest rate offered to lenders increased to 14% APR tax-free, translating to an inflation-busting net average return of 7.88% APR across all loans on the platform.
- New executive team - Hussain Qaragholi, a former banker with over 20 years of experience in London, New York, and Dubai, is currently Interim Managing Director at Crowd2Fund. Hussain joined the board as a Non-Executive Director in June 2022 and became Executive Director in February of 2023. Hussain initiated a gap analysis of the firm’s people, processes, systems, and business plan.
- New head of origination - Muneeb Ajmal has been hired to drive revenue growth and product diversification. Muneeb has a solid background in fintech with Google and other global companies. He has re-engaged with existing brokers, initiated efforts to re-activate dormant investors, reviewed other sales channels, and revamped our marketing and communication strategy. Most recent numbers show a significant boost in our KPIs over the past three months.
- 42% month-on-month growth – Since completing the restructure and putting the new team in place over the past 3 months the platform has started to grow again. We’ve seen a significant increase in deal flow, and we hope to accelerate this growth.
- After being with the firm for three years now, Chelsea Macleod continues in her core operational role with the support of Abel Solomon and Sebastian Torres to ensure continued smooth operations and steady growth.
- New head of collections - Matthew Anderson has joined as Head of Collections. Matt is a seasoned professional with 25 years of experience. His work is already bearing fruit. He and his support staff have reviewed and taken appropriate recovery action on 44 non-performing loans.
- Internal accounting and reporting – Significant Improvement of these processes to give the Board and senior management ample information to support strategic decision-making.
- New and up-and-coming talent - We also launched a University Internship Cohort Programme and have had our first cohort of analyst interns join. This programme has attracted eager students from top UK and US universities, such as Bowdoin College, King’s College London, Reading University, and University College London - that are interested in banking and FinTech to work and gain experience at Crowd2Fund while being mentored and supervised.
What are the plans moving forward?
Now that the restructure is complete, we plan to continue our work on the internationalisation of the platform in non-UK markets. Achieving this objective will require recruiting new talent to bolster the number of opportunities available on the platform and expanding our investor base to facilitate the funding of additional businesses.
Additionally, we are working towards making significant improvements in our tech department, the roadmap includes bank accounts, further app developments, operational system improvements, exploration of AI and automated due diligence processes.
We firmly believe that Crowd2Fund has significant growth potential both in the UK and internationally. We are continuously evaluating our business model based on objective and empirically sourced evidence to sustainably scale the business.
Realising your investment
If you own shares in Crowd2Fund it could be realised if the company is sold via a trade sale or floated on a public market. The board and executive team are committed to scaling up the company now the restructure is complete, and the capital is available to achieve this.
We would like to take this opportunity to express our gratitude for your patience and continued support. Your engagement plays a vital role in fuelling the remarkable development and growth of our business. Despite the competition, our unique characteristics and unwavering resilience consistently set us apart. We are delighted to witness the ongoing evolution of our venture and thank you for your invaluable contributions and support.
Frequently Asked Questions on Reboot Britain
- Can I keep investing in Reboot Britain?
Yes, to invest please visit Reboot Britain campaign here.
- What is Reboot Britain and why was it launched?
Reboot Britain offered investors an exciting opportunity to help bring the UK economy back to life during a very challenging time. So far, 392 investors have invested a combined £2.33m into the growth of the platform and we’ve made some great progress.
- Can I keep earning interest?
You will receive additional interest of 4.00% APR in the form of bonus equity and your equity will be provided at a 20% discount to the current floor price valuation.
- When will I get a return on my equity?
Your shares could be realised if the company is sold via a trade sale or floated on the stock exchange.
- Can I transfer my investment or sell my investment on the exchange?
Shares are transferable off the platform but not currently via the Exchange.
- When does it convert?
Your investment is due to convert into equity 36 months after you made the pledge. If you made multiple pledges, then it will convert 36 months after each specific pledge.
- Are the earnings tax-free?
Even though the investment could qualify for the Innovative Finance ISA (IFISA) tax wrapper we have decided not to include it in the wrapper due to potential complexities with other equity investment types.
- What is the discounted share price?
Your equity will be provided at a 20% discount to the current floor price valuation at £54.54 per share.
- What are the other conversion events?
Terms of conversion are below:
(i) Automatically on completion of an equity round by Crowd2Fund raising at least £10,000,000 (excluding the loan amounts converting). At a 20% discount to the price paid by investors in the round.
(ii) At the election of a majority of the private investors in respect of an equity round raising at least £2m. At a 20% discount to the price paid by investors in the round.
(iii) At the election of a majority of the private investors and if an institution participate themselves in respect of an equity round raising less than £2m. At a 20% discount to the price paid by investors in the round.
(iv) On a sale of Crowd2Fund only if the private investors would end up with more than if the loan plus the accrued 4% interest was repaid.
(v) Automatically at the expiry of the term.
We would like to take this opportunity to express our gratitude for your patience and continued support. Your engagement plays a vital role in fuelling the remarkable development and growth of our business. Despite the competition, our unique characteristics and unwavering resilience consistently set us apart. We are delighted to witness the ongoing evolution of our venture and thank you for your invaluable contributions and support.
Risk Warning
Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.
