ShareIn closes crowdfunding bond deals worth £3.2m
The firm provided its expertise to investment manager Downing, which added four bonds to its new crowdfunding platform to raise funds for a solar power farm, an anaerobic digestion plant, an onshore wind farm and a selection of pubs.
ShareIn chief executive Jude Cook said: “Our technology being used for bonds marks a significant addition to our product offering and we’re utterly thrilled by what Downing Crowd have been able to achieve.”
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Fellow co-founder Andrew Pickett, the firm’s chief technology officer, added: “We’re expanding our product range and aren’t just about equity crowdfunding anymore.
“We have many new projects on the horizon including three new property crowdfunding platforms and a community share platform to enable fan ownership. It’s really exciting times for ShareIn.”
ShareIn teamed up with Downing in March to offer the first retail bond using its technology. The move came after ShareIn helped Hibernian FC kick off an effort for supporters to own up to 51 per cent of the club – a move it said marked the first time that a football team has enabled fans to buy shares directly on its own website.
Earlier this month, the Financial Conduct Authority (FCA) launched a consultation into the £2.7 billion regulated crowdfunding market, with the City regulator seeking views on whether current rules need to be tightened up to protect consumers investing on an estimated 100 different fundraising platforms.
At the time, Christopher Woolard, the FCA’s director of strategy and competition, said: “The crowdfunding market is an innovative and growing sector and one which we see as part of promoting effective competition. We introduced rules in 2014 to ensure consumers were protected without preventing the market from enhancing competition through expansion and innovation.
“Since then the market has grown rapidly and we want to explore concerns that have been expressed about developments in some aspects of the market. We believe now is the right time to consider whether our requirements remain appropriate and that we have the right rules to support the development of this dynamic market by ensuring consumers are adequately protected.”
Cook said: “ShareIn has always been a strong advocate for financial regulation and ensuring that risks and potential returns are presented clearly. We take our responsibilities very seriously and feel that appropriate regulation is key in this industry.”