A new UK equity and debt crowdfunding platform has launched this week which seeks to support small and medium-sized businesses through “every stage of their life cycle”; from seed capital to Series A and B rounds.
Regulated by the Financial Conduct Authority (FCA), Funding Tree allows individual investors to back anything from £50 up to £1m in businesses across Europe, and specifies that all crowdfunding campaigns listed on its platform must achieve 90% of their funding target in order to proceed.
Joint equity and debt deals are also possible; a move which the site claims enables it to build “long-term relationships with companies” as opposed to facilitating one-off transactions.
Funding Tree CEO and co-founder, Dillen Iyavoo, commented on the launch: “The finance requirements of companies are always changing and, during a typical growth cycle, will often switch from equity to debt and back again.
“It’s these changing demands that we have set out to accommodate with Funding Tree, which is able to offer UK small and medium enterprises the type of finance they need when they need it — and get the money to them far quicker than other platforms thanks to our strong capital position.
“Our goal is to make crowdfunding relationship-based rather than transactional, something the banks, despite their many faults, have always understood.”