Funding Club sets out its stall in Manchester
A NEW peer-to-peer provider of funding that seeks to introduce wealthy investors to UK businesses and property developers was launched in Manchester last night.
The Funding Club says it has identified the need for a network aimed specifically at very high and ultra-high net worth individuals, who are well-informed, sophisticated and capable of making quick decisions.
It aims to create a data base of around 60 high net worth individuals and present opportunities to them based upon their own skill sets, experience or stated preferences.
Last night’s launch at the Great John Street Hotel was attended by more than 100 advisers and entrepreneurs.
Founder and director Mark Hales said: “Many of you will be familiar with some of our competitors such as Fincats, Funding Circle and Crowdcube – all of whom offer services similar to those that The Funding Club will offer.
“But, where we seek to differentiate ourselves is by working with a very small group of entrepreneurial very high and ultra-high net worth individuals to provide funding of between £300,000 and around £10m.
“The other main area where we seek to differentiate is by offering more complex solutions. Complexity can be a factor of time, ie the speed with which funding is required, security available, track record, or any number of factors that mean it is unsuitable for the existing platforms.”
The founding six funders of The Funding Club have a combined net worth of around £1.2bn and it is seeking to recruit around 10 new funders from each region. “We are seeking individuals or families with a net worth of at least £10m,” Hales added.
Funding Club has been created by four established entrepreneurs: Steve Smith, the founder of Poundland who sold out in 2002 for just short of £50m; Rodger Danks, who now owns and runs a substantial property portfolio; Darren Beech, who has worked in the insurance and finance industry since 1989; and Mark Hales, who having built one of the UK’s largest social care providers and sold it for £40m, now owns and runs a number of health care and tech-related businesses.
He added: “Between us, we bring a wealth of knowledge and contacts that mean we can think outside the box. We are able to tailor funding to suit the specific needs of our clients through a combination of debt and or equity instruments.”
