17th April 2024
Wishing all our investors, businesses and supporters a happy new tax year, we’re pleased to provide the following update on our the progress with the development of the Crowd2Fund platform and Reboot Britain campaign.
Company Update
The most significant recent development is the establishment of a new board of directors in June 2022 with the aim of instilling corporate governance and crucially preparing the platform to scale.
The new board began to fill key management positions in 2023 in order to prepare the platform for growth through new hires, optimised processes and improved technology have been the focus for the past 12 months. Hussain Qaragholi was appointed managing director to support the restructuring of the company, facilitate team training and develop the international expansion plans.
Since 2013, a total of £47,187,554 in capital has been invested via the platform, with a total amount of £7,525,900 interest earned. Over the past year, 51 individual businesses and entrepreneurs received funding, with a total investment value of £3,126,895.63. Currently, we have 2704 active investors and growing. Moreover, since April 2023, we've welcomed 6 new talented permanent staff members to our team.
Muneeb Ajmal was appointed head of origination and placement and has streamlined operational processes and brought in technological solutions to bring efficiencies in the sales processes. Sebastian Torres and Matthew Anderson took the helm of credit risk and operations with a revised credit policy focusing on improved returns and sustainable growth. There have been substantial improvements in the collections process - providing investors with more transparency and comfort.
New strategies have been developed for the current high interest climate to ensure that British entrepreneurs are continued to be supported and we also continue to provide positive tax free returns for entrepreneurial investors via the Innovative Finance ISA.
The new customer service team is committed to bringing consistency and quality to all platform investors. Lastly, a new technology team was put in place and is actively working on revamping user experience and adding new features.
The company restructure has released significant growth capital for Crowd2Fund and the new team are keen to maximise month by month revenue growth. We are investing in the platform technology to enable us to scale the business, both here in the UK and abroad. Our goal is to increase our sales by 50% in the next 12 months and to continue the journey of sustainable growth.
Reboot Britain Update
We’re pleased to inform you that the conversion event has now been activated and investors who pledged 36 months ago will now see that their investments have matured into equity ownership of the platform meaning they can share in our potential long term success. If you’re an investor, your investment will automatically convert from debt to equity and you will receive an email notification detailing the specifics of your investment.
So far £2.21m has been raised via the initiative and investors continue to pledge, earning 4% interest on their capital for 36 months and then conversion into platform equity.
Frequently Asked Questions on Reboot Britain
Can I keep investing in Reboot Britain?
Yes, to invest please visit the 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. After 36 months your investment will convert from debt to equity and you will no longer earn interest.
When will I get a return on my equity?
Your investment 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 to other investors off the platform but not currently via the Exchange.
How can I transfer shares off platform?
If you wish to sell your investment off platform then the firm would support the sale and transfer of the investment. We are not responsible for finding a buyer. Should you wish to transfer shares please have your solicitors reach out.
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. Investors are responsible for managing their tax liabilities.
What is the discounted share price?
Your equity will be issued at a 20% discount to the current floor price valuation at £54.54 per share.
What are the other conversion events?
Conversion events are as follows:
(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.
Can I start or stop my repayments being invested into the campaign?
Yes, you have the ability to begin or end repayments automatically investing into Reboot Britain via your Settings page.
We would like to take this opportunity to express our gratitude for your patience and continued support. Your engagement plays a vital role in supporting British entrepreneurs and the unique proposition of allowing investors to choose the entrepreneurs that want to back. We are pleased to see the ongoing evolution of our venture and thank you for your invaluable contributions and support.
Our plan for the next 12 months
Our strategic focus for the upcoming period encompasses several key areas. Firstly, we aim for a robust 10% Month-over-Month (MoM) revenue growth, striving to double our market share in the non-bank lending sector. In terms of new features, we plan to leverage open banking for data-driven decision-making, develop a dedicated broker portal, integrate AI/ML decisioning into the credit process, and revamp the UI/UX experience for our users.
Additionally, internationalisation is a priority as we seek to identify and enter new markets using our proven P2P business model through licensing and other avenues. To support these initiatives, we will expand our tech team to enhance our technology and improve operational efficiency by streamlining operations to reduce costs and enhance service delivery.
Finally, we aim to increase brand awareness and loyalty through the relaunch of marketing campaigns and initiatives to further grow our community.
