Racefields, an FCA authorised corporate finance house, has today launched the Racefields Research Service, which will investigate businesses looking to raise finance on popular P2P and crowdfunding platforms. The independent service will provide over one hundred in-depth reports on individual UK businesses every year, which subscribers can access via email to make better-informed investment decisions. Racefields will not take payment from the companies being analysed to ensure impartiality.
The growth of P2P and crowdfunding platforms such as Funding Circle and Crowdcube has attracted investors looking for higher returns, but sometimes with limited information on businesses raising finance on these sites, investors cannot be sure that they are making the right investment decisions. The Racefields Research Service will investigate businesses looking to raise money, assessing factors such as financial stability, ownership of contracts and patents, the history of the company directors and legitimacy of financial projections. To conduct its research, Racefields will look at materials such as bank statements, HMRC information and other factors depending on their relevance.
The service will cost subscribers £299 per year. As businesses are able to nominate themselves for a free assessment, as well as being selected by Racefields, the service will allow legitimate companies to validate their business model to potential investors.
David Gammond, CEO of Racefields has commented, “P2P and crowdfunding platforms are revolutionising the finance industry by enabling businesses to overcome their reliance on banks, while enabling private investors to increase their returns. However, without having the right insight, investors cannot be certain of what they are getting themselves into. By providing comprehensive research on businesses looking to raise funds, Racefields will provide a much needed layer of transparency to the P2P and crowdfunding market, enabling investors to be more confident of their decisions.”
He continued, “Recent moves by the FCA to regulate the P2P market are a positive sign that the industry is beginning to mature, which is great news for both the investors and businesses involved. Racefields will enhance this further by providing a level of information that the platforms themselves don’t always achieve alone.”