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Don’t invest unless you’re prepared to lose all the money you invest. This is a high - risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more
Don’t invest unless you’re prepared to lose all the money you invest. This is a high - risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be very complex and high risk.
What are the key risks?
You could lose all the money you invest
If the business offering this investment fails, there is a high risk that you will lose all your money. Businesses like this often fail as they usually use risky investment strategies.
Losses can exceed the invested amount. In some remote circumstances, you may lose more than the amount invested due to adverse cost risk. After The Event (ATE) insurance will be put in place for cases that carry adverse cost risk, however it is not guaranteed that the insurance will pay out.
Advertised rates of return aren’t guaranteed. This is not a savings account. If the issuer doesn’t pay you back as agreed, you could earn less money than expected or nothing at all. A higher advertised rate of return means a higher risk of losing your money. If it looks too good to be true, it probably is.
These investments are very occasionally held in an Innovative Finance ISA (IFISA). While any potential gains from your investment will be tax free, you can still lose all your money. An IFISA does not reduce the risk of the investment or protect you from losses.
You are unlikely to be protected if something goes wrong
Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
You are unlikely to get your money back quickly
This type of business could face cash-flow problems that delay payments to investors. It could also fail altogether and be unable to repay any of the money owed to you.
You are unlikely to be able to cash in your investment early by selling your investment. In the rare circumstances where it is possible to sell your investment in a ‘secondary market’, you may not find a buyer at the price you are willing to sell.
You may have to pay exit fees or additional charges to take any money out of your investment early.
This is a complex investment
This kind of investment has a complex structure based on other risky investments, which makes it difficult for the investor to know where their money is going.
This makes it difficult to predict how risky the investment is, but it will most likely be high.
You may wish to get financial advice before deciding to invest.
Don’t put all your eggs in one basket
Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
To date, AxiaFunder raised £10,293,440 for a range of commercial and portfolio investments. Figure 1: Cumulative capital raised via AxiaFunder platform
Individual Commercial Cases
17 individual commercial cases have been fully funded via our platform, of which nine have successfully resolved and one has resolved negatively with each corresponding offer* generating returns for investors of between 17% and 175% return** over periods of time ranging between 7-44 months. Meanwhile, the other 7 cases remain ongoing. Total amount of capital raised for commercial cases is £3,213,440*** with an average IRR**** on the resolved cases equivalent to 39%.
Portfolio Cases
In addition, AxiaFunder has been funding UK Housing Disrepair (HDR) Litigation Claims since May 2022 - raising £7.1m to date across 22 separate limited partnership Special Purpose Vehicles (SPVs), funding 2554 claims.
Figure 3: Cumulative Portfolio Funding by Law Firm The net investor returns for the first 7 SPVs are shown below. The dots show the investor net gains by tranche and time of the tranche payment. For example, looking at SPV1 funded in May 2022, the first 10%-tranche had an investor return of 4.7% in December 2022, 7 months after the Offer launch, followed by returns of 17.3% and 25.2% in March and May 2023 from the second and third tranches respectively. In total 31 10%-tranches have been repaid to date, together comprising 279 resolved claims (out of 604 claims funded by these 7 SPVs). The average gain to investors across the settled claims is 24.0%. Contractually, claims that settle after a longer period tend to generate a higher return, e.g. the two 6th tranches of SPV1 and SPV2 have generated returns of 43.3% and 44.8%, respectively.
Figure 4: Investor Return on Investment (ROI) for Sequential 10%-tranches, for SPVs with Repayments
To view current investment opportunities (if any), visit our investments page. Disclaimer: Past performance is not a guarantee of future results and projected returns are not guaranteed to be realised. You should not invest unless you are willing to lose all the money you invest. This is a high-risk investment, and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more.
* 3 cases were funded with one SPV via Offer ID 2510; 3 cases were funded with one SPV via Offer ID 3536; 4 cases were funded in stages using separate SPVs. ** Net investor return accrued to date. For resolved cases this is the actual net gain after fees received by investors. For ongoing cases, this is the net return investors would get after all fees if there was an immediate case win. *** Total primary trading volume **** Internal Rate of Return (IRR); Average refers to the arithmetic mean. ***** Win means case resolved with a positive financial return for investors. Lose means case resolved with a negative financial return for investors.
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