A new online equity fundraising platform for small businesses and start-ups and has launched with the aim of getting investors to bankroll up to £2 million per project.
FundTheGap (FTG) is the brainchild of co-founder Ken Ford, who promises that every venture accepted will receive funding from him and his fellow directors.
Ford said: “There is a need for platforms like ours to help finance those unquoted companies wanting to grow which need between £100,000 and £2 million because this need is not met by the banks.
“We are an FSA-regulated site and we have already attracted several quality companies and hopefully individuals interested in making an investing in growing companies to help entrepreneurs.”
“Investors will also be helping the economy, whilst potentially picking up the generous reliefs available for income and capital gains and inheritance tax.”
SEIS benefits
Those making an investment could take advantage of the government’s Enterprise Investment Scheme (EIS), or the Seed Enterprise Investment Scheme (SEIS) – which will return up to 78% of the investment in the form of tax relief and more should the venture fail.
The first business to benefit from the FTG platform is Cell Guidance Systems, which undertakes stem cell research to develop drugs to treat patients suffering from a stroke and heart disease.
The firm is looking to raise £200,000 from potential investors on the platform in exchange for 12.37% of equity.
What sets FTG apart from other funding sources is that all the firms which feature on the platform will have been vetted by the company, which meets with the senior managers of the business before they are accepted for funding.
Pitch for £2m
Once the company is accepted they can then pitch online in an effort to generate up to £2 million in equity for their ambitions with FTG making an investment of between £500 and £50,000.
FTG is backed by one of the most experienced management teams in the industry and they have, in previous jobs, raised more than £500 million of investment funding.
Alongside Ford are Martin Sherwood and Derek Uittenbroek.
Mr Uittenbroek said: “Because we finance professionals we cannot accept an investment that we ourselves wouldn’t want to back which is why we are prepared to investing ourselves with every venture we accept.”
The founders say that FundTheGap will become the most intuitive online source of funding in the UK by instantly connecting investors looking to put money into start-ups and small businesses and then enable them to communicate easily between each other.
