Network turns to crowdfunders to fund growth
To raise funds for its next phase of growth, financial services network What Group Investments has turned to crowdfunding platform InvestingZone, executive chairman Neil Harkin has said.
The York-based network said it was seeking crowdfunding of £350,000 for a 14 per cent stake in the business.
With £100,000 already pledged, Mr Harkin said there was widespread opportunity for investors.
He said: “We have ambitious plans to grow our business, as our network and direct sales force expands to service the vast personal protection gap we need to ensure that our clients and advisers are fully supported in the areas of sales administration, training and compliance, and that our business operations perform effectively.”
In 2000 Mr Harkin and managing director Gregg Taylor co-founded – along with Simon Chamberlain – financial advice firm Thinc, before selling it to Axa in 2006.
In 2010 they launched What Insure, then developed What Partnership, which was launched in 2011. Subsequently, they have established What Protect (a trading style of What Insure) and partnered with LifeQuote to plug the gap in the personal protection and advice market.
It now has 33 franchise territories, with 68 regional and associate partners operating across the UK.
In September 2014 it launched What Direct, an initiative to provide local teams of protection specialists across the country, to help its target market – private individuals and families.
Adviser view
David Penny, managing director of Somerset-based Invest Southwest, said: “Post-RDR, the big providers stopped giving advice to clients, so this created an opportunity for smaller firms to expand. If finance can be secured by crowdfunding, and as long as it meets its capital adequacy requirements with the FCA, and if they can secure a loan on good terms, then good luck to them.”
