Introduction

Operating since January 2014, we have built up an efficient and robust technology driven platform and are now looking to aggressively increase our investor base. Our goal is to offer innovative and appealing products to investors in order to provide funding to ambitious small companies. We support both public and private UK companies through all stages of their lifecycle, from seed to pre-IPO and when listed. We do this through equity funding under the SEIS and EIS initiatives and through debt funding via our mini-bonds, convertible loans, loans with warrants and secured loans.

Through a user-friendly platform combined with a sound system of procedures, Crowd for Angels aims to offer high levels of member experience and satisfaction. Our investors get the opportunity to connect, capitalise and share the growth prospects of small companies at no additional cost to themselves.

Crowd for Angels (UK) Limited (Company number: 03064807), is authorised and regulated by the Financial Conduct Authority (Reference number: 176508).

Product Innovation

1. Providing innovative minimum and maximum funding goals which allow entrepreneurs to lower the initial barrier to securing funding.
   
   
2. Providing clear and transparent information on our products to investors regarding pricing, valuation, type of investment and number of shares being issued.
   
   
3. Using a nominee service to mitigate investor disputes and keep paperwork to a minimum.
   
   
4. Offering our services to companies of any size, from start-up to pre-IPO and beyond.
   
   
5. Charging no fees to investors throughout the process. 

Substantial accomplishments to date

1. We were one of the first crowdfunding platforms in the UK to achieve authorisations from the Financial Conduct Authority (FCA) to carry out crowdfunding activities for both debt and equity products. We have also been approved by HMRC to be an Innovative Finance ISA manager.
   
   
2. Over two years we have developed a sophisticated platform, www.crowdforangels.com, which has the capacity to increase functionality and cater for a variety of crowdfunding models and jurisdictions. A recent development to the platform has been the creation of a fund managers’ portal that allows companies who have clients wishing to invest the opportunity to do so. This includes investors who have SIPP and SSAS plans.
   
   
3. Proven the model with successfully funded pitches. To date, we have listed 27 pitches on our platform, three of which are currently fundraising and seven that have successfully hit their target. We have helped companies to raise £1.1 million on our platform to date.
   
   
4. Proven our marketing ability by consistently being in the 4th position in web traffic for equity crowdfunding platforms in the UK according to Alexa (figures as at 23rd March 2016). We have achieved this despite a limited marketing budget and are confident that further investment in this area will bring exponential growth.
   
   
5. We currently welcome over 6,100 visitors per month to the Crowd for Angels platform, with 42% being returning traffic (Source: Google Analytics as at 23rd March 2016).
   
   
6. Our commitment to innovation, service and quality has been recognised through features in a range of media such as City AM, Mail on Sunday, start-ups, Asian Voice, ScreenDaily, The Telegraph, Crowdfund Insider, crowdsourcing.org and shareradio.

Monetisation Strategy

Crowd for Angels earns income by charging companies fees on the funds they raise. We take a percentage of the total amount raised from each successful pitch. For equity deals, this is 6% of the raised funds and for debt deals, this ranges from 3.5% to 4.5%. In addition, companies pay us 2% on amounts converted into equity and on warrants exercised. 

Valuation and Offer

Our most recent fundraising was completed at a price of 25p per share, valuing the company at £2,447,215. We are currently looking to raise a minimum of £196,000 and a maximum of £700,000.

We are offering up to 2,500,000 shares, equivalent to 20.34%. This equates to a pre-money valuation of £2.74 million. 

The directors have taken on the initial risk in the company by financing it through seed and start-up stage. We are now offering other investors to come on board at what we believe is a favourable valuation in relation to comparable offerings in the marketplace.

A newly established crowdfunding company, Growthdeck Limited, is currently raising £1.2 million at a pre-money valuation of £3.6 million. In September 2014 Funding Tree raised £580,000 at a valuation of £7.1 million.

The company has received advance assurance from HMRC that the proposed share issue is likely to qualify for Enterprise Investment Scheme (EIS) tax relief.