Item: Leap
Rating: 0.0
Author: Crowdinform

Leapfunder serves as a digital marketplace connecting startups with a network of angel investors across Europe. Since its inception in 2014, the platform has facilitated funding for over 170 rounds, providing startups with the necessary capital to grow and scale their businesses. Leapfunder emphasizes a direct relationship between startups and investors, offering standardized investment structures to streamline the funding process. The platform's focus on early-stage investments allows investors to participate in high-growth potential startups, with an average reported return of approximately 25.7% per annum.

Basic information

170 projects funded

For Investors

Minium investment: 1000 GBP

Average Returns: ~25,7%

Useful Information

What Investments Does Leapfunder Offer?

Leapfunder offers investment opportunities in a diverse range of early-stage startups across various sectors. The platform focuses on convertible note investments, allowing investors to acquire debt instruments that can be converted into equity at a later stage. Investment opportunities span multiple industries, including technology, healthcare, consumer goods, and more. Each investment opportunity is presented with detailed information about the startup's business model, financial performance, growth strategy, and funding requirements. This enables investors to make informed decisions based on their investment preferences and risk appetite.

How Does Leapfunder Work?

Leapfunder operates by connecting startups seeking capital with potential investors through its online platform. Startups can create investment rounds, providing detailed information about their business, financials, and funding goals. Investors can browse various investment opportunities, assess the associated risks and potential returns, and decide to invest in startups that align with their investment preferences. Investments are made through convertible notes, which are debt instruments that can be converted into equity at a later stage, typically during a subsequent funding round. The platform facilitates the investment process, including handling legal documentation and fund transfers. Additionally, Leapfunder provides ongoing support and communication to investors, keeping them informed about the progress and performance of their investments.

What Is the Risk When Investing on Leapfunder?

Investing through Leapfunder involves inherent risks associated with early-stage startups and convertible note investments. These risks include the potential for loss of the entire invested capital, as startups may face challenges that could lead to business failure. Convertible notes carry the risk of not converting into equity if the startup does not reach a subsequent funding round or if certain conditions are not met. The lack of a secondary market means that investors may find it difficult to sell their convertible notes or equity promptly or at desired prices. Additionally, the valuation of startups can be complex and may not reflect the true market value, leading to potential overvaluation or undervaluation. Investors are advised to conduct thorough due diligence, diversify their investment portfolios, and consider their risk tolerance before investing through Leapfunder.