Below you will find most answers to the questions you may have if you are a company seeking debt funding. If you cannot find the answers you require and need further support, feel free to contact us by email at email@example.com or by phone on 0207 437 2413.
How do I get investment in for my company?
Regarding public listed companies or private companies these can get investments through the issue of loan notes. Crowd for Angels offers three types of loans namely straight loans, loans with warrants and convertible loans. To get investments you need to start a pitch and you can do this by clicking on the 'start a pitch' button.
How does a company get listed on the Crowd for Angels platform?
Firstly, the company has to register as a Crowd for Angels member on the Crowd for Angels website. Secondly, after registering it needs to fill in a pitch application about its business.
At Crowd for Angelwe will then review your pitch application and determine whether the company is a good fit for investors at Crowd for Angels. If it is approved, you will have to create a detailed pitch by filling out the pitch creation form. A background check will be run on the company and we will conduct our own research prior to allowing a company to list its debt pitch as a Crowd for Angels listing.
What does 'min' and 'max' mean when raising funds?
The 'min' is the minimum funding target that needs to be reached in order to close the investment for the company. The 'max' is the maximum funding target which allows for extra funds to be raised after the minimum has been reached. The minimum and maximum funding targets are determined by the company based on its valuation.
Do I need to be a listed public limited company to raise money through debt?
No, your company can be a small private company and still raise funds through debt funding on the Crowd for Angels platform.
Who can make a debt pitch on the Crowd for Angels platform?
Any UK listed company can create a debt pitch on the Crowd for Angels platform.
Do debt pitches require an investment target and an end date?
Companies must set a minimum and a maximum funding target which cannot be changed once their debt pitch is published as a Crowd for Angels listing. The Crowd for Angels listing shall be live for the duration of the Crowd for Angels listing window which is for a certain period set by the company. Nevertheless, please note that this period must not exceed 90 days unless the pitch is extended with the approval of Crowd for Angels.
If the debt pitch is successfully funded, how do companies receive the investment amount?
When each funding target is met and the legal paperwork is completed (or the Crowd for Angels listing window expires and at least the minimum funding target has been achieved), Crowd for Angels will transfer the Investment Amount in to the Investee Company's bank account.
What fees does Crowd for Angels charge?
There are no charges for companies to register and add an equity pitch on the Crowd for Angels platform. Companies do not incur any charges if they are unsuccessful in raising funds through Crowd for Angels. If companies are successful, please see the Crowd for Angels fees charged here.
What information and documentation do I need to create a debt pitch?
A debt pitch is your way of selling your company to potential investors at Crowd for Angels. As a listed company you may only provide information that is in the public domain. This information may already be on your website so it may be sufficient to copy/paste the information onto the debt pitch.
Should I upload a video and add pictures?
A video is great way to explain the pitch to the investors at Crowd for Angels, while it is not necessary to upload a video it will be a great benefit to your pitch as will explanatory pictures.
Can I create more than one pitch simultaneously?
Each company may only have one active pitch at any time.
Can pitches be edited after launch?
Pitches cannot be edited after launch, however, they can be updated at any time subject to approval from Crowd for Angels. Updates will be shown separately in an 'update' section on the pitch.
Can pitches raise more money than the target amount?
Pitches cannot raise more than the maximum funding target set by the company. However, a company can always return at a later date to have a second round of investment if its business keeps growing.
Can companies increase/decrease the funding target amounts?
No, once the pitch is live on the Crowd for Angels platform, the funding targets cannot be changed.
Can a company end a pitch early?
A pitch ends only when the funding target amounts are met or the Crowd for Angels listing window expires.
Can I invest in my own pitch?
Can I find investment from another source?
Yes, please notify us and we can add it to your total.
A pitch update is a way for the company to provide regular updates on the progress of its pitch and business.
How will investors at Crowd for Angels know that there is an update?
Investors at Crowd for Angels will have to check up on the pitch, regularly, to see if there are any updates available. Investors at Crowd for Angels can get the option of being sent an email automatically notifying them that the pitch has been updated. This is done simply by following a pitch.
Who will invest in my company?
Once your company goes live on the Crowd for Angels platform, all the Crowd for Angels members will be able to see your pitch and invest in it. We strongly recommend that you invite your friends, family and other interested people to the Crowd for Angels platform. They can help you in creating a strong momentum to the raising of funds process.
Why do I need to submit a pitch application?
We would like to learn more about your company before we decide if it is suitable for using crowdfunding as a means of raising funds. Please prepare the information requested in the 'pitch creation form' carefully as only companies with a strong business plan and an attractive idea will be considered. Once the pitch application is submitted, we will endeavour to contact you within 48 hours to discuss your pitch application further.
I need help with the pitch application. Can you help me?
We understand that some companies will need more guiding in the process of filling out our pitch applications and pitch creation forms. This is why we have created help guides which you can open by using the link here.
What is the minimum and maximum target amount that can be raised through debt funding on the platform, if there are any?
Regarding debt pitches the the minimum funding target that can be set on the Crowd for Angels platform is £10,000. The maximum funding target that can be set depends on the company's needs and its ability to provide a good business plan explaining the reasons for the maximum amount requested.
How do I decide the interest rate on convertible loan notes?
Each company decides the interest rate it is willing to offer to investors at Crowd for Angels. Companies should bear in mind that the interest rate is the return that investors will receive. They will compare this investment opportunity with others available on the market and to similar transactions carried out recently.
How is the conversion price calculated?
The formula used to calculate the conversion price may be different for each quoted public limited company. It is discussed with the company before it is listed on the Crowd for Angels platform. However, we recommend a simple formula where the conversion price is set at an agreed discount to the market price within a set period.
For example: the convertible loan notes will be converted into ordinary shares at 95% of the lowest bid price during the ten trading days immediately prior to the conversion date.
Does it matter what the company's choice of days for conversion are?
It is entirely up to the company to decide the dates at which conversion can occur.
What responsibilities does a company have if any of its investors decide to convert their convertible loan notes?
If any of the investors in the company convert a part or the entirety of their convertible loan notes, the company has to issue and send the number of shares which the investor is entitled to the investor's nominated brokerage account at Crowd for Angels. Sometimes after converting the convertible loan notes there is a small residue cash amount which the company has to pay back to the investors through Crowd for Angels. All the conversion price will be sent to the company on the day following the conversion date.
What if the company does not reach its minimum funding target amount?
If the company does not reach the minimum funding target amount before the pitch expires, it will be closed and all committed funds raised will be returned back to investors' Crowd for Angels accounts.
How long does the legal paperwork take to be completed?
The legal paperwork should take no more than a week to be completed.
Can a public company use the CfA Platform to raise equity?
No. Public companies can only use the CfA Platform to borrow money from CfA Investors using convertible Loan Notes.
What types of shares will PLCs issue to investors at Crowd for Angels?
The PLCs will issue ordinary shares tradable on the markets and similar to those currently listed.
Why does Crowd for Angels appoint a nominee?
The appointed nominee at Crowd for Angels will represent all the investors in your company and you only have to deal with the nominee instead of contacting all investors individually. The nominee arrangement will firstly reduce your administrative cost significantly. Secondly, the nominee can keep the investors at Crowd for Angels up to date with any information the company sends to us simply by uploading it on the Crowd for Angel platform only for investors at Crowd for Angels to see. And last but not least, our investors do not need to worry about any day-to-day management of their investments.
Does Crowd for Angels have FCA authorisation?
Yes, Crowd for Angels is authorised and regulated by the Financial Conduct Authority (FCA).
Will Crowd for Angels keep investors informed about the progress of my company?
Yes, any information your company sends to us will be passed to investors at Crowd for Angels for them to see.