How to Buy Shares in P2P Lending Platforms

8 min read

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on email

The main reasons startups, such as many P2P lending platforms, sell ownership when seeking funding are to speedup growth and get the right people on board to make their company a success story. But what if you are not a venture capitalist, a business angel or working at a P2P lending platform. Is it still possible to get ownership at an early stage?

The answer is YES – thanks to the fairly new and growing market for equity crowdfunding several lending-based crowdfunding platforms have already offered equity at an early stage to their lenders and other interested investors.

How do I Buy Shares in a P2P Lending Platform Business?

It is possible to buy shares in the companies behind P2P Lending marketplaces without being a business angel or any other high-net individual. This can be done in mainly two different ways: Through the established stock market or an equity crowdfunding platform.

Smaller businesses like start-ups are usually not traded on the traditional stock market. Therefore, only a few P2P lending platforms can be found at your stockbroker. Instead, together with the rise of lending-based crowdfunding, equity-based crowdfunding is finding its way into the market (a common term for lending-based crowdfunding and equity-based crowdfunding is called crowdinvesting).

P2P lending platforms have been heavy users of equity crowdfunding for raising capital. This makes it possible to buy shares in many P2P lending businesses at an early stage before they might launch an IPO and become trade-able on the traditional stock market. In this way, investors can become co-owners of P2P lending marketplaces at a point of time that has usually been reserved for venture capitalists, business angels and employees at the start-up. 

However, it is important to keep in mind that it is very risky to invest in startups. On the other hand, we have seen some P2P lending companies, such as Landbay and Flender, experience huge increases in value.

Most crowdinvesting platform shares (11/14 we have discovered) have been sold through the UK located equity based crowdfunding platform Seedrs, while only two are traded on the public stock market. On this platform the shares are only traded one week from the first tuesday every month at 11am to the following tuesday at 11am to keep the liquidity in these smaller companies at a high enough level.

A complete list of all P2P lending platforms using equity crowdfunding and the valuations can be found below.

Why do P2P Lending Platforms use Equity Crowdfunding?

For P2P lending companies to seek funding through equity crowdfunding platforms makes perfect sense for this type of business since their existing lending costumers already know how a crowdinvesting platform works and are potential equity investors, it might commit their lenders even more long-term and even bring in new clients for future growth as a was of marketing. Apart from buying shares at equity crowdfunding platforms like Seedrs and Funderbeam, there have also been a few options to buy into IPO’s right before platforms gets noted on the public stock market and whose stocks are still traded as you read this.

Listed below are all the P2P Lending Platforms that have raised money through equity crowdfunding, IPO’s and those who are traded on the public stock market in order by the valuation at last round of financing.

P2P Lending Platforms that uses Equity Crowdfunding

Assetz Capital

Assetz Capital is a UK platform for SME and real estate loans founded in 2012. This P2P platform has used equity crowdfunding to raise money publicly three times at Seedrs amounting to a total of £7,223,085 funded.

Assetz Capital Limited Public Financing Rounds & Valuation

3. Round: Seeking £1M – Funding ended 20 May 2019 with £1,866,500 raised.
Pre-money valuation: Convertible. Min. cap £52.24M, max cap £72M. More details

2. Round: Seeking £1M – Funding ended 31 October 2017 with £2,098,075 raised.
Pre-money valuation: £50.1M. More details

1. Round: Seeking £2M – Funding ended 23 February 2015 with £3,258,510.
Pre-money valuation: Convertible. Converted at net post-money: £20M. More details

Landbay

Landbay is a UK platform for real estate loans founded in 2013. This platform has used equity crowdfunding to raise money publicly astonishing 10 times (+2 private) with Seedrs at a total of £9,069,083 funded.

Landbay Partners Limited Public Financing Rounds & Valuation

10. Round: Seeking £1,877,255 – Funding ended 13 February 2019 with £2,200,815 raised.
Pre-money valuation: £40,015,124. More details

9. Round: Seeking £1,250,078 – Funding ended 28 March 2018 with £1,622,756 raised.
Pre-money valuation: £28,918,587. More details

8. Round: Seeking £1,500,059 – Funding ended 14 March 2017 with £2,441,727 raised.
Pre-money valuation: £18,263,306. More details

7. Round: Seeking £1,000,036 – Funding ended 23 February 2016 with £1,601,371 raised.
Pre-money valuation: £10,302,390 (without convertible). More details

6. Round: Seeking £100,000 – Funding ended 19 August 2015 with £105,600 raised.
Pre-money valuation: Convertible. Min. cap £10M, max cap £30M. More details

5. Round: Seeking £300,000 – Funding ended 17 June 2015 with £549,300 raised.
Pre-money valuation: Convertible. Min. cap £10M, max cap £30M. More details

4. Round: Seeking £199,901 – Funding ended 12 December 2014 with £267,864 raised.
Pre-money valuation: £4,250,498More details

3. Round: Seeking £41,456 – Funding ended 2 May 2014 with £114,552 raised.
Pre-money valuation: £1,360,788. More details

2. Round: Seeking £81,647 – Funding ended 25 April 2014 with £83,451 raised.
Pre-money valuation: £1,279,141. More details

1. Round: Seeking £50,000 – Funding ended 12 December 2013 with £81,647 raised.
Pre-money valuation: £616,667. More details

Crowdstacker

Crowdstacker is a UK platform for larger business loans founded in 2014. This platform has used equity crowdfunding to raise money publicly one time with Seedrs at a total of £818,210 funded.

Crowdstacker Ltd. Public Financing Round & Valuation

1. Round: Seeking £800,020 – Funding ended 18 September 2018 with £818,210 raised.
Pre-money valuation: £19,564,136. More details

NEO Finance

NEO Finance is a platform for Lithuanian consumer lending loans founded in 2015. This platform has used equity crowdfunding to raise money publicly one time with Seedrs at a total of £215,740 funded.

Fund Ourselves Ltd. Public Financing Round & Valuation

1. Round: Seeking £200,002 – Funding ended 2 November 2018 with £215,740 raised.
Pre-money valuation: £10,529,425. More details

Flender

Flender is a platform for Irish business loans founded in 2017. This platform has used equity crowdfunding to raise money publicly two times with Seedrs at a total of £1,948,227 funded.

Flender Ireland Ltd. Public Financing Round & Valuation

2. Round: Seeking £1,438,572 – Funding ended 13 June 2019 with £1,446,527 raised.
Pre-money valuation: £10,005,707. More details

1. Round: Seeking £500,009 – Funding ended 12 January 2017 with £501,700 raised.
Pre-money valuation: £4,498,613. More details

Assetz Exchange

Assetz Exchange is a platform associated with Assetz Capital for UK property loans founded in 2015. This platform is using equity crowdfunding to raise money publicly for the first time with Seedrs at a total of at least £392,348 funded.

Investly Ltd. Public Financing Round & Valuation

1. Round: Seeking £350,005 – Funding is still running live.
Pre-money valuation: £6,902,276. More details

Investly

Investly is a platform for invoice financing in UK and Estonia founded in 2013. This platform has used equity crowdfunding to raise money publicly one time with Seedrs at a total of £500,002 funded.

Investly Ltd. Public Financing Round & Valuation

1. Round: Seeking £500,002 – Funding ended 9 March 2018 with £679,085 raised.
Pre-money valuation: £6,645,459. More details

Lendino

Lendino is a platform for Danish business loans founded in 2014. This platform has used equity crowdfunding to raise money publicly one time with Funderbeam at a total of 365,530 funded.

Lendino A/S Public Financing Round & Valuation

1. Round: Seeking €300,000 – Funding ended 20 April 2019 with €365,530 raised.
Pre-money valuation: €6,700,000. More details

FundOurselves (former WeLendUs)

FundOurselves is a platform for United Kingdom short-term loans founded in 2015. This platform has used equity crowdfunding to raise money publicly three times with Seedrs at a total of £1,265,087 funded.

Fund Ourselves Ltd. Public Financing Rounds & Valuation

3. Round: Seeking £850,000 – Funding ended 24 August 2018 with £939,104 raised.
Pre-money valuation: £6,021,435. More details

2. Round: Seeking £150,001 – Funding ended 25 November 2017 with £208,898 raised.
Pre-money valuation: £4,636,944. More details

1. Round: Seeking £100,000 – Funding ended 9 March 2018 with £117,085 raised.
Pre-money valuation: £3,439,748. More details

CrowdProperty

CrowdProperty is a platform for United Kingdom property loans founded in 2015. This platform have used equity crowdfunding to raise money publicly three times with Seedrs at a total of £1,265,087 funded.

CrowdProperty Ltd. Public Financing Round & Valuation

1. Round: Seeking £600,001 – Funding ended 19 November 2017 with £907,520 raised.
Pre-money valuation: £5,900,000. More details

Brickowner

Brickowner is a platform for United Kingdom property loans founded in 2016. This platform has used equity crowdfunding to raise money publicly four times with Seedrs at a total of £580,711 funded.

Brickowner Limited Public Financing Rounds & Valuation

4. Round: Seeking £150,021 – Funding ended 23 October 2018 with £274,650 raised.
Pre-money valuation: £5,000,012. More details

3. Round: Seeking £50,040 – Funding ended 29 March 2018 with £63,630 raised.
Pre-money valuation: Convertible. Max. cap £6M More details

2. Round: Seeking £120,012 – Funding ended 13 November 2017 with £125,351 raised.
Pre-money valuation: £2,501,137. More details

1. Round: Seeking £100,009 – Funding ended 29 July 2016 with £117,080 raised.
Pre-money valuation: £1,300,954. More details

CrowdLords

CrowdLords is a platform for real estate loans and shares in UK founded in 2014. This platform has used equity crowdfunding to raise money publicly two times with Seedrs at a total of £310,130 funded.

CrowdLords Limited Public Financing Rounds & Valuation

2. Round: Seeking £150,000 – Funding ended 19 September 2018 with £152,490 raised.
Pre-money valuation: £3,246,295. More details

1. Round: Seeking £90,000 – Funding ended 8 November 2014 with £157,640 raised.
Pre-money valuation: £810,000. More details

P2P Lending Platforms Traded on the Stock Market

LendingClub Corporation (NYSE: LC) Stock & IPO

Lending Club is a US platform for consumer loans and one of the first P2P lending platforms in the world founded in 2006. The IPO happened on the 10th December 2014 when the firm sold 58 million shares at $15 a piece, raising $870 million in the largest U.S. tech IPO of 2014. The company went into trade at a valuation of $5.3bn and after five years and a stock split the total market cap have decreased over 1/5 to $1.1bn.

Funding Circle Holdings PLC (LON: FCH) Stock & IPO

Funding Circle is a UK platform for business loans in multiple countries (operating in UK, US, Germany and Netherlands so far). The shares went into trade 28th September 2018 at a valuation of almost £1.6bn raising £300M for the company at a stock price of 440 pence. Under one year later the share price hit 110 pence, 1/4 of its value the 2. august 2019.

Do you see a Publicly Available Financing Round missing?

Luk menu