Summary of how AxiaFunder (Axia) worksi with Lawyers
||Indicative process stages in pursuing claim
||Initial Assessment: claim presented by lawyerii for preliminary assessment and indicative pricing quote.
||Full due diligence: Axia requests exclusivity for up to 2 weeks and fully diligencesiii the case.
||Funding agreement execution: The SPViv and claimant agree terms, execute the funding agreement, and execute a priority agreement with the claimant’s lawyers and ATE provider. Axia then has exclusivity for typically 3-4 weeks to source the funds.
||Preparation for fundraising: financing arranged via issuance of equity or bonds from the SPV with a confidential offer documentv vi prepared by Axia.
- Launch of fundraising: an anonymised short summary of the investment opportunity is shown publicly on the Axia platformvii.
- Private investors selected: investors interested in the case, provide identity documentsviii; pass a detailed questionnaire demonstrating an understanding of the risks involvedviii; are vetted by Axia; sign an NDAix; and must self-certify no conflict with the casex.
- Closing the fund raising: under NDA, approved investors are given access to the offer document and indicate how much they would like to invest. Once the fund-raising is complete, the net funds are transferred to the case SPV, available for transfer to solicitor’s client account as needed.
- Axia’s litigation team monitors the case on an ongoing basis and processes additional drawdown requests in line with the litigation agreement.
- Once the case is resolved, the SPV receives its success fee (in line with the priority agreement), distributes the net amount after expenses to its investors, and is wound down.
Key features of Axia’s approach include:
- Experienced team: operated by seasoned litigators and bankers focused on building long-term relationships with lawyers through customer service and problem-solving.
- Convenient process: We understand that lawyers have multiple demands on their time. While we rigorously pre-vet every investment on our platform, we take a common-sense approach to our due diligence and avoid box-ticking merely for the sake of procedure. This helps to minimise the work load for the lawyers we work with.
- Flexible claim size: Axia will source non-recourse funding for amounts from £10,000 to £1,000,000.
- Flexible investment mandate: Unlike some funders, subject to our size constraints, we are able to source capital for a wide variety of claims both in terms of geography and case type.
- Initial response within 1 week: We will provide an initial assessment on your case within 5 work days. If this is favourable, we will request a period of exclusivity to complete our assessment and source the capital, with a target turnaround time of 5-8 weeks from initial enquiry to funding.
- Competitive pricing: Axia’s model, which minimises cash-drag, enables us to offer competitive pricing.
For further information contact: firstname.lastname@example.org, or email@example.com; +44 203 286 5922.
i The approach has been reviewed and approved by senior litigation funding counsel and alternative finance regulatory experts.
ii Axia will never seek to change the lawyers on a case.
iii Including merits, enforceability, ATE cover, economics, regulatory, incentives alignment, regulatory compliance
iv SPV: Special Purpose Vehicle (limited UK company)
v The offer document is submitted for review by the compliance team at ShareIn, and at Enterprise Investment Partners for equity offerings. AxiaFunder (FRN: 811606) is an appointed representative of ShareIn Limited, which is authorized and regulated by the Financial Conduct Authority (who are FCA regulated with FRN: 603332). Enterprise Investment Partners (who are FCA regulated with FRN: 604439) act as the Alternative Investment Fund Manager for equity-financed SPVs.
vi Our institutional funding partner reviews the case offer document and then potentially guarantees funding.
vii The AxiaFunder website is built and maintained by ShareIn. ShareIn’s tried and tested technology is used by many other fintech businesses besides Axia.
viii One time only
ix The Axia NDA has been prepared by a corporate law partner who is a litigation funding specialist. It carefully maintains the chain of custody of information between Axia and the potential investor under common purpose.
x The potential investor is provided, under NDA, with the names of the claimant, defendant and their advisers.