Angels Den launches crowdfunding platform

New platform described as a “world first” with blend of six ways to raise finance

Angel investor network Angels Den, fronted by Bill Morrow, has launched a new “integrated” crowdfunding platform claiming to “widen the door to a broader range of business ideas.”

Unveiled at the Heron Tower on Wednesday evening, Angels Den says its new platform will provide six different ways for its claimed global network of 6,000 angel investors to back entrepreneurs.

The move marks a volte face for Angels Den’s founder Morrow, who has been outspoken in his view on crowdfunding and previously told one business angel website that “having 1,000 investors, each with their own agenda is going to be a nightmare, no matter how it is dressed up”.

Through its ‘crowd’ service investors will be able to back pitches through online loans, online equity investment and donations and rewards, combining the crowdfunding models offered by other platforms, such as Crowdcube, Seedrs, Kickstarter, and Peoplefund.it.

Angels Den has dubbed the platform a “world first” due to the addition of its offline angel investment existence which allows investors to attend angel speedfunding events, angel club events and private viewings.

Supported by BBC The Apprentice finalist and recent Angels Den pitch winner Luissa Zissman along with ex-Dragon Rachel Elnaugh, an Angels Den regular, the crowdfunding platform will not charge a fee until funds are raised.

The site has also sought to differentiate itself from other crowdfunding platforms in how businesses allocate shares.

“Unlike other Crowdfunding platforms, at Angels Den, there is no need to set up a complex nominee structure,” the site promises. “Our Investment Terms and post-investment forum make it easy to deal directly with your investors as well as get consent for future funding rounds.”

While Angels Den’s speedfunding package costs £799 (to cover training, documentation, promotion and face-to-face pitching), plus a 5% success fee for the company putting businesses in front of its network of investors, the crowdfunding platform only charges fees following a successful fundraising.

Funded companies will be charged a £1,600 admin fee (reduced by £799 for companies that have already pitched to Angels Den investors), plus a 5% success fee. All fees are subject to 20% VAT.

In comparison, fellow equity platform Crowdcube charges £1,750, plus a 5% success fee, while Seedrs charges a flat commission of 7.5% of funds raised.

Referring to the Angels Den launch, Morrow described its crowdfunding addition a “natural evolution of [our] success story”.

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