What is litigation crowdfunding? How litigation crowdfunding provides the possibility of attractive return to potential investors? Watch this video.
We guide you through the process from registration to investment on the AxiaFunder platform.
Complete our simple registration process: click on Find out more - you then need to complete an Investor Readiness process and upload some Identity documents which are necessary to comply with anti-money laundering requirements.
For legal reasons AxiaFunder needs to review your profile before granting access to the case details; we’ll aim to do this within 30 minutes and you will receive an email notification once this is complete.
Review and agree to a Non-Disclosure Agreement (NDA) for the case. This is required because the information related to a case is typically sensitive for both the claimant and the defendant.
Once you and AxiaFunder have digitally agreed to the NDA, you will have access to the details of the case including many of the relevant case legal documents. You will also be provided with an offer document for your review.
You can invest in the case, either directly or via your IF ISA account, by clicking on the relevant button. If investing directly, you will be asked to fund your investment either by bank transfer or card.
Over the duration of a case there will be updates every quarter. At maturity of the investment, if a case is resolved successfully there will be a deposit of principal and interest to your AxiaFunder wallet. You can withdraw cash from your AxiaFunder wallet at any time. If the case is unsuccessful you will likely incur a significant loss of up to your entire investment. For full explanation of potential risks please refer to risk section.
Having experienced a significant broad-based rally in equity and property markets over the last 9 years, arguably now is a good time for eligible investors to look to diversify their exposure across other asset classes - ideally those with little or no correlation with traditional risk markets. In this regard, litigation funding seems like an attractive option although not without its own specific risks.
For litigation funders, adverse cost risk, whilst
real, is an identifiable and manageable risk which is extremely low and should
not, of itself, deter those investors who are interested in seeking the projected
returns that this type of investment may be able to offer, as part of a
balanced portfolio of investments.
By Michael Lent, AxiaFunder Case Originator and Assessor 21st November 2018
The growing popularity of litigation finance has been fuelled by billions of dollars from hedge funds, private equity and other institutional investors. Now a crowdfunding platform due to launch in the UK early next month is hoping to spread the word — and the high returns — to private investors. In recent years, money has been pouring into litigation finance businesses, which provide upfront funding for claimants who cannot afford to fight legal disputes in return for a share of any settlement or damages.
Originally published in Financial Times by Barney Thompson, legal correspondent on 23rd August 2018