AxiaFunder is an online crowdfunding platform that connects investors with carefully vetted commercial litigation opportunities that we believe have the potential to generate attractive risk-adjusted returns. AxiaFunder's team have a combined 40+ years of financial experience and a combined 30+ years of litigation experience. AxiaFunder is focusing on the smaller end of the commercial litigation market (mainly in the UK and continental Europe) where we believe there is a significant shortage of capital and many clearly viable cases. AxiaFunder is a trading name of Champerty Limited. Champerty Limited (Firm Reference Number 811606) is an appointed representative of Share In Ltd (Firm Reference Number 603332).
AxiaFunder identifies cases that it believes are suitable for investment and then makes each case individually available for investment through a bond or equity investment offered on the website. Some of these cases may have already been pre-funded before reaching the platform, in which case the purpose of the investment on the platform will be to refinance this pre-funding.
After deducting AxiaFunder’s upfront fee, the net funds raised are held in a Special Purpose Vehicle (SPV) and used to finance the litigation (, or used to refinance the SPV for cases that have already been pre-funded, via a bridge loan or otherwise). If the claimant wins the case (or resolves the case favourably), the SPV receives a contractual return which is typically either a share of the damages received or a fixed return per annum and, after deducting AxiaFunder’s share of the return, the remainder is available for bond or equity holders (depending on how the SPV is funded). In the case of an SPV funded by bond issuance, any remaining profits in the SPV after paying the agreed bond coupon, (likely to be relatively small) will be paid to a nominated charity.
If the claimant loses the case, the bond or equity investors are likely to lose the majority of their invested principal. Industry data suggests that the investments are likely to mature within 24-36 months but may take longer.
Sourcing and assessing cases
Cases will be sourced via litigation brokers, insolvency practitioners and from law firms directly. AxiaFunder targets a win or settlement probability of at least 65% for cases that are funded via the platform. AxiaFunder seeks to ensure that cases available for funding on the platform satisfy the following criteria:
Case monitoring and resolution
During the life of the case, AxiaFunder will monitor progress and provide updates to investors on a quarterly basis. On resolution of the case, the investment will be wound up with available principal and contractual return paid to investors, depending on the outcome.
Main risks when investing via AxiaFunder
Litigation funding involves taking a high level of risk in the hope of receiving a high level of return.
Investors should refer to the offer document for each case for a more detailed risk disclosure.