Crowdfunding

Helping to raise funds at every stage of the business lifecycle

Alternative funding is becoming a more popular choice for businesses looking for diverse finance options.

With some banks taking a more cautious approach to their lending portfolios, businesses are turning to alternative sources such as crowdfunding in particular peer-to-peer financing.

Increasing regulation is making it harder for businesses to secure funding, and more onerous for lenders to invest. Combined with demanding compliance obligations, keeping up-to-date with FCA and FRC requirements, as well as data protection regulations has become more of a priority.

Our banking and finance credentials have seen us work with a number of peer-to-peer lenders, crowdfunding platforms, borrowers and ancillary third-party service providers – helping them to quickly calculate the risks, understand the opportunities and take action.

  • Crowdfunding platforms face a number of challenges. We support on regulatory issues covering the requisite permissions (such as permission to operating an electronic system in relation to lending and client money permission), financial promotion, compliance, money laundering, verification of information memoranda, data protection and GDPR.
  • Drafting transactional documentation can be complex but our specialists support on preparing subscription agreements, shareholders’ agreements, bespoke articles of association, peer-to-peer loan agreements, platform agreements for lenders, investors and borrowers, as well as equity raising and security documentation.
  • Ensuring commercial arrangements and regulatory requirements are watertight is vital to leveraging business assets. We handle IP and licensing agreements, tax management, enforcement of security and the full range of insolvency issues when borrowers are unable to make repayment arrangements.

Our service
We advise businesses in relation to the two main elements of crowdfunding through an electronic platform: equity funding by the issue of shares – in a variety of forms – to investors individually, through a trustee or through a syndicate; as well as debt funding. This includes individual and corporate peer-to peer-lending and the issuance of debt securities such as bonds or loan notes by corporate borrowers.

For borrowers, we advise on the merits of whether debt or equity is the appropriate form of crowdfunding, draft documentation with the facilitating platform, as well as the preparation of documentation for existing lenders and investors as appropriate.

How we work with you
Alternative funding options, such as peer to peer lending and crowd funding, demand experts who have the network and understanding of the FinTech marketplace.

We understand the technicalities of the sector, the marketplace challenges that you face and how to keep you compliant along the way. We truly get to know you and ensure your ambitions are met.

Meet Our Legal Experts

Our Thoughts

All the latest thoughts and insights from our team

Abbey Healthcare (Mill Hill) Ltd v Simply Construct (UK) Llp

29 Jun

Real Estate & Planning

Abbey Healthcare (Mill Hill) Ltd v Simply Construct (UK) Llp

The recent decision made by the Court of Appeal in Abbey Healthcare (Mill Hill) […]

Read article Right Arrow

Don’t waste money on space you don’t use! Re-gear

29 Jun

Real Estate & Planning

Don’t waste money on space you don’t use! Re-gear

With many companies now operating a hybrid working model following the work from home […]

Read article Right Arrow

SHMA® On Demand

All the latest on-demand content

Agriculture: diversifying or leasing your land to create habitat banks

6 Jul

Peter Snodgrass, Partner & Head of Agriculture

Agriculture: diversifying or leasing your land to create habitat banks

We know that biodiversity net gains provide a significant opportunity for landowners to diversify […]

Register Right Arrow

Teachers’ Pension Scheme – strategic issues independent schools need to think about

20 Jul

Esther Maxwell, Legal Director | Emma Glazzard, Solicitor

Teachers’ Pension Scheme – strategic issues independent schools need to think about

Webinar Teachers’ Pension Scheme – strategic issues independent schools need to think about In […]

Register Right Arrow