AxiaFunder is the UK’s first commercial litigation funding platform. The platform launched in January last year and aims to connect eligible investors (typically institutions, high-net-worth or sophisticated retail investors) with claimants seeking funding.
Investors receive a return on their capital if the case wins and lose some or all of their capital if the case loses.
AxiaFunder brings together a mix of finance, litigation funding and startup expertise. AxiaFunder's head of case assessment, Michael Lent has significant experience in commercial litigation. Michael was first registered as a solicitor in 1978.
By matching pre-vetted litigation cases with funders, AxiaFunder is able to create new investment opportunities while offering claimants a viable solution to their funding requirements.
Intended impact
The UK litigation funding market is growing, yet we believe that the market for smaller claims (requiring <£1m in funding) remains relatively underserved.
Enter AxiaFunder - the litigation crowdfunding platform aimed at legal claims requiring funding from £10,000 up to £1 million.
Small businesses and individuals may find themselves confronted with prohibitive legal costs when defending their interests. AxiaFunder aims to help "level the playing field".
At AxiaFunder we take a rigorous approach to assessing potential deals: amongst a number of important criteria, cases must have strong legal merits, attractive economics (damages to cost-to-litigate ratio of typically at least 5x), and a high chance of enforceability of any judgement.
For investors, litigation funding offers a ready way to diversify exposure. Legal claims are uncorrelated with traditional asset classes, such as equities, bonds, property or commodities, and instead have their own unique risk/return profile.
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