AxiaFunder review 2024
Is AxiaFunder a good platform for litigation crowdfunding? Find out in our AxiaFunder review below:
AxiaFunder
Pros:
Cons:
Review summary:
AxiaFunder is probably the single best litigation crowdfunding platform right now. On the platform, you can invest in cases that have yielded an average return of 35%. To date, nine cases have been resolved successfully. The return will probably be lower in the future at around 20-30% (as advertised on the website). The asset is, by its nature, uncorrelated to the broader market, which makes it an attractive opportunity for diversification in one’s investment portfolio. AxiaFunder is highly rated in Trustpilot reviews.
It’s free to use the platform.
Introduction to our AxiaFunder review
Are you considering investing via AxiaFunder? Then read on. We’ve written this AxiaFunder.com review to help investors determine if AxiaFunder is the right choice for them.
Below you will find an overview of the things that we will discuss more in detail in this AxiaFunder review. Simply click on the links to jump to the thing you want to know more about.
Learn about this in our AxiaFunder review:
- What is AxiaFunder?
- Key features
- Who can use AxiaFunder?
- How safe is AxiaFunder?
- Our experience with AxiaFunder
- AxiaFunder reviews on Trustpilot
- Best AxiaFunder alternatives
- Conclusion of our AxiaFunder review
What is AxiaFunder?
AxiaFunder is a litigation crowdfunding platform based in the UK. It connects investors with carefully vetted legal cases, allowing them to invest in legal claims that have the potential for high returns if the cases are successful.
AxiaFunder primarily focuses on commercial litigation, where claimants require financial support to pursue legal action against defendants. This not only helps claimants access justice but also offers investors the chance to earn returns based on the outcomes of the cases.
AxiaFunder was launched in January 2019. Since then, the platform has continued to grow in terms of the number of investors and cases won.
Currently, there are over 1,900 registered users on the platform. 9 resolved cases generated an average return of 35.00%. But keep in mind that the expected long-term return advertised by AxiaFunder is around 20–30%.
AxiaFunder conducts thorough due diligence to assess the merits and risks of each case before listing it for investment.
AxiaFunder’s investment opportunities are open to qualifying investors based in the UK and EEA. Non-EEA investors (including US and Canada-based investors) are generally eligible to invest subject to some additional approvals.
With as little as £1,000, you can open an account and start investing at www.axiafunder.com.
AxiaFunder statistics:
| Founded: | 2016 |
| Asset Type: | Litigation |
| Investment Type: | Partnership shares |
| Investment Period: | 2 – 36 Months |
| Investments Funded: | £ 13,593,440 + |
| AxiaFunder Users: | 1,900 + |
| Minimum Investment: | £ 1,000 |
| Maximum Investment: | Unlimited |
| Target Investor Return: | 20-30% |
How AxiaFunder works:
AxiaFunder works by letting investors crowdfund cases that would otherwise not be pursued due to a lack of funds or similar reasons. These can be case types like:
- Professional negligence
- Breach of contract
- Insurance claim
- Shareholder dispute
Litigation crowdfunding can help level the playing field for justice and let claimants with a strong case, but too little funds have an opportunity to pursue a case.
If the case wins, the investors that have invested in the case get a share of the proceeds recovered by the claimant. If not, some or all of the funds will be lost.
All the cases that you can find on AxiaFunder have been screened by lawyers who are typically willing to risk their own fees for a win.
Key features
We have already taken a look at some of the reasons why AxiaFunder has become a popular choice among investors. In the following, we take a closer look at some of the key features that make it a great litigation crowdfunding platform to invest with:
1. AxiaFunder secondary market
One of the most important features is the AxiaFunder secondary market. This feature was added in September 2021.
The AxiaFunder secondary market allows you to sell your partnership shares in a case to other litigation finance investors before a case is settled. This is especially useful if you need the money for other investments. Or if you want to withdraw your funds.
In order to sell your partnership shares in a case on the secondary market, you can follow this process:
- Go to https://www.axiafunder.com/
- Log in to your account
- Select “Secondary Market” in the navigation
- Click “Add a listing”
- You can now select what you wish to sell
If you wish to buy from the secondary market, simply go to the available holdings page and indicate that you want to purchase the partnership shares in a particular offer. You will need to be accepted by the seller.
Sellers on the secondary market will have to pay a fee of 2.5% of the purchasing price. The fee for buyers is 3%. The secondary market fee is quite high compared to other crowdfunding platforms, but AxiaFunder’s unique offer might make it worth it.
The minimum transaction on the AxiaFunder secondary market is £1,000.
2. Investor insurance
AxiaFunder only funds cases that have an After-the-event (ATE) policy in place that protects its investors against the downside risk of having to pay an adverse costs order if the funded case is unsuccessful.
In some cases, there will be an additional cover for the claimant’s legal costs (that have been funded by AxiaFunder’s investors), meaning some or the majority of the investors’ capital will be protected (i.e. the protection is only partial because this insurance cover excludes AxiaFunder’s fees).
The partial capital protection could for example be 85%. This would mean that you are only risking 15%, as the other 85% are insured.
3. AxiaFunder portfolio product
In May 2022, AxiaFunder launched a new portfolio product. This product allows investors to effectively diversify their investments on the platform across a large number of individual claims.
According to P2P Finance News, the portfolio product targets returns of up to 28%.
Who can use AxiaFunder?
AxiaFunder’s investment opportunities are open to self-certified sophisticated investors, high-net-worth individuals, and professional investors. Both individuals and companies can invest via AxiaFunder.
Individuals
To invest via AxiaFunder as an individual, please follow the following steps:
- Login into your AxiaFunder account, select “Account”, and choose “Complete
your profile” in the drop-down list - Complete the investor suitability test
- After completing the test, select Individual as an investor type
- Provide personal information and upload an identity document (most non-UK
investors will be asked to provide proof of address)
You can create an account at www.axiafunder.com.
Companies
To invest via AxiaFunder via your company, please follow the following steps:
- Login into your AxiaFunder account, select “Account”, and choose “Complete your profile” in the drop-down list
- Complete the investor suitability test
- After completing the test, select “Institution” as an investor type
- Provide company and personal information and upload a number of documents – including the certificate of incorporation, articles of association, and a beneficial ownership statement
- Upload an identity document to verify your identity
Available countries
AxiaFunder’s investment opportunities are open to qualifying investors from most countries. Non-EEA investors (including US and Canada-based investors) are generally eligible to invest, subject to some additional approvals.
How to invest via AxiaFunder
In the following video tutorial from AxiaFunder, you can learn how to invest via the platform:
How safe is AxiaFunder?
AxiaFunder seems like a safe platform for litigation crowdfunding, as it has a great track record and an experienced team to back it up. However, investors should be aware that no investments are 100% which is also the case on AxiaFunder.
The main risk you are running when investing via AxiaFunder is that the case is lost. In this scenario, you will end up losing some or all of your invested funds. This is expected to happen on this platform.
AxiaFunder has a high win rate, which is a good sign for investors. But when you invest on the platform, you risk losing some or all of your invested funds in a particular court case, if the case is lost.
To mitigate the risk of losing a case, AxiaFunder has an experienced case assessment team who carefully assesses each claim against a number of important criteria, including but not limited to legal merit, legal team, ATE insurance, economics, and enforceability.
Of every 20 cases reviewed, AxiaFunder expects to only select one for funding on the platform.
Diversification can also help to reduce the risk of a negative outcome, and AxiaFunder recommends that individuals look to spread their litigation investment across at least 5–10 cases.
As illustrated on AxiaFunder’s website, by allocating their funds across a portfolio of 10 cases, each with a fairly conservative estimate of the probability of success of 70% (many funders quote win rates of 85-90%), an investor could, in theory, be able to realize annual returns of over 40% pa.
As an alternative to letting investors build up their own portfolio of litigation cases, AxiaFunder has also recently launched a new portfolio product that allows investors to diversify their investment across 15-90 housing disrepair claims. The new portfolio products aim to generate an investor return of around 25-28% p.a.
Our experience with AxiaFunder
AxiaFunder is in our experience a good platform for litigation crowdfunding.
The team behind the platform seems very experienced and has done a good job at selecting cases. This has resulted in a lot of case wins on the platform, which has yielded a super high average annual return.
AxiaFunder reviews on Trustpilot
Trustpilot is a great place to learn what other people think of AxiaFunder. We have collected some relevant AxiaFunder reviews from Trustpilot for you to take a closer look at:
Best AxiaFunder alternatives
Are you uncertain whether AxiaFunder is the right fit for you after reading this review? Here are some of the best AxiaFunder alternatives:
1. LexShares
LexShares is a litigation finance platform from 2014 that allows investors to fund legal cases in exchange for a share of the potential financial recovery. This platform connects plaintiffs in need of funding with investors looking to diversify their portfolios through legal investments.
LexShares is based in the U.S. and primarily serves the U.S. market. While it’s generally more convenient for U.S. investors due to financial regulations, non-U.S. investors can use it with some additional steps. Keep in mind that AxiaFunder has a lower minimum investment requirement, which might appeal to more investors.
Conclusion of our AxiaFunder review
AxiaFunder is probably the single best litigation crowdfunding platform right now.
Currently, there have been 9 wins and 2 losses on the platform, resulting in a -96% to 175% return for investors. While it is not expected that this win rate can continue, it indicates that AxiaFunder has a good process for selecting cases for investment.
AxiaFunder is also highly rated on Trustpilot, where most reviews are positive.
The most negative thing about AxiaFunder is the fact that if you lose on a case, some or all of your money will be lost. Furthermore, there are not a lot of statistics to get an idea of what the long-term return will be. This is advertised to be around 20-30% by AxiaFunder.
One of the main advantages of AxiaFunder is that it offers a great way for investors to diversify their portfolios. The platform also has a good track record, with a high success rate for funded cases.
The platform is also suitable for individuals who have a strong interest in specific legal cases and who want to support the case financially.
Overall, AxiaFunder is a well-established and reputable litigation funding platform that offers investors an opportunity to earn high returns, but it is not suitable for risk-averse investors.
