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AxiaFunder Analysis

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Rank #62
Litigation Stocks
Equity Crowdfunding
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Last updated in September 2022.

What is AxiaFunder?

AxiaFunder is an innovative peer-to-peer financing platform that crowdfunds lawsuits and offers retail investors the chance to participate in the outcome of the court proceedings in the UK. Since 2019, they have raised over £3.15m (€3.64m) for commercial and portfolio investments. See AxiaFunder Statistics for more historical performance insights.

Key Takeaways

  • 14 fully funded commercial case investments since 2019
  • £815,000 raised for Housing Disrepair Program (HDR)
  • Awarded Best Commercial Litigation Crowdfunding Platform in 2019

Who is Behind AxiaFunder?

Cormac Leech is the Founder & CEO of AxiaFunder. He is an expert and public figure on the alternative investment scene in the UK. Before founding AxiaFunder, he founded and directed Liberum Alternative Finance giving him experience with raising over £2 billion for direct lending funds.

Michael Lent, Head of Case Origination and Assessment, has recently expanded the case assessment team and welcomed two experienced commercial litigation hires. Noor Kadhim and Anthony Berry bring decades of arbitration and litigation experience to the senior team.

AxiaFunder raised £256,780 from 154 investors in March 2020 through a Seedrs Equity Campaign. According to the fundraising material for the campaign on Seedrs, AxiaFunder was the first alternative investment platform of its kind for litigation financing in Europe.

AxiaFunder's Investment Product

AxiaFunder offers litigation financing investments in suitable legal cases. Investors can contribute to the legal costs and share in the proceeds. Litigation financing has grown in popularity over the last 30 years and is broadly accepted in the UK, US and Australian markets. Investors can choose from cases carefully selected for their potential return on investment, with most offering at least a 65% success probability.

Investments are only intended for HNWIs and Sophisticated Investors. Funds from investors are used to finance legal disputes. If the case is successful, gains will be realised, but if the case is lost or thrown out then no returns will be paid to investors and the initial capital is at risk of partial or full loss.

A secondary market is available through the AxiaFunder Bulletin Board Service. The fee for selling on the secondary market is 2.5%. Buyers on the secondary market pay a fee of 3% to AxiaFunder.

How Much Can You Earn?

According to AxiaFunder, the anticipated internal rate of returns (IRR) from their HDR program will be 25%. The current average internal rate of return on AxiaFunder is 48%. So far, investors have enjoyed returns between 33% and 94% across 14 fully funded cases.

AxiaFunder does not charge fees directly to its investors. The business model is to charge issuers fees of between 7% and 10% at a successful raising. A success fee of 20% is then also applied before charging operating costs and distributing the remaining funds to investors.

Other Considerations

AxiaFunder has not yet offered many investments through the platform so any return figures they display should be considered from a small sample size. The creation of the UK Association of Litigation Funders in 2011 marked a turning point in the attitudes of UK regulators towards litigation financing.