A former Foxtons agent is aiming to crowdfund £450,000 for a company that intends to revolutionize the property industry. Launched in February of this year, Goodlord describes itself as an online platform for managing the full tenancy process for lettings and estate agents. The company aims to “avoid tenancy paperwork, cut the deposit collection process from days to minutes, and collect rent on time every month”; an impressive target in an industry where paperwork is traditionally a main component. The company handles all paperwork and payments digitally and says that Goodlord can be fully integrated into existing back office systems. It enables tenancies to be processed from any location, on any connected device, creating excellent potential for international sales. There are currently only a few other companies that offer the same service, so it has certainly identified a gap in the market. Richard White, CEO and man behind the idea, says what sets them apart from the competition is fourfold: “Firstly, we are free (unless you go for the white label version – EG their own branding with a one off fee £299). Others charge a monthly fee. We are also white label product – powered by Goodlord, but with an agents own look and feel. Thirdly, Goodlord integrates with existing platforms; most agencies use a software package and it is a big problem for them is they need to run two systems and have to do double data entry. Lastly, we have paid extreme attention to the user experience and it has been made as simple as possible so anyone can use it. One said that “it’s so simple my grandparents who are 86 could use it!” Arguably, this idea represents a complete modernisation of the lettings process. It could be said that moving all paperwork online is a bit of a risk – it takes just one malfunction of the system to bring an agency to a standstill. There could also be some public mistrust surrounding e-signatures, an integral part of Goodlord’s system, particuarly concerning security and fraud. However, Richard White believes this won’t be a problem: “Arguably our method of signing is more secure than paper. We link peoples electronic signatures to an on rails process which includes ID checks, credit and logging devices, IPs and passwords meaning we know exactly who the signing party is”. The property market seems to share White’s enthusiasm; Goodlord is currently used by 35 offices around the UK with a waiting list of agencies they are waiting to bring onto the system, and they have so far processed more than £2m in tenancy transactions. Goodlord is hoping to raise £450,000 on crowdfunding platform crowdcube.com. By Miranda Wadham

Hornby, the model and collectibles specialist, has today announced it will be launching its own crowdfunding project in an effort to revive interest in the group’s Airfix products. Founded in 1939, Airfix grew to be a popular pastime of young boys who relished popping open boxes of World War 2 tanks and meticulously constructing wartime vehicles they had heard stories about. The age of the internet has almost killed this off and Hornby has gone about tackling this head on by utilising the internet to give individuals the opportunity to decide which models they would like to make and financially back items of choice. Those who partake in the crowdfunding project will be able to build an exclusive vintage Airfix model. Richard Ames, Hornby Chief Executive Officer: “This is a really exciting initiative for Airfix. We have a very large back-catalogue of model kits, many that are still remembered fondly by our consumers. We get lots of feedback about which models people would like us to re-introduce. Our KitStarter crowd-funding platform will enable Hornby to interact much more closely with our consumers. This will help us gauge demand accurately and respond quickly to their requests. Then we can prioritise which models we re-introduce. “This initiative is one of a number where we are working hard to build closer links with our consumers. Many of these people are loyal enthusiasts who have been fans of Airfix for a long time and we enjoy interacting with them at model shows and via the model forums on our website. We are also confident that KitStarter will help us to reach a new generation of model enthusiasts that we can attract into the hobby.”

Read the Pitch Carefully Studying the pitch should be the first step in your research into the company, examining every detail of the pitch will build the base for your own research. Spread Your Risk This may seem elementary for seasoned investors but its mention is no less important. Diversification is key, whether your focus be in Blue Chip FTSE 100 companies, commodities or start-ups who finance themselves through Crowdfunding. Understand You Could Lose Your Entire Investment A vast amount of businesses fail in their first year. Crowdfunded businesses are not immune to this harsh statistic so you have to absolutely certain you can afford to lose your entire investment and that you do not need the funds any time soon. Check the Financials This includes the cash flow forecasts and balance sheet. Just because the idea may seem groundbreaking, it doesn’t guarantee financial success, if the company becomes overstretched and is forced to raise further funds you risk being diluted. Research the Key Personnel What are their previous successes? Have they failed in business before? Are they involved in any other business? How much have they personally invested? This is the absolute bare minimum you should be asking yourself before making an investment. Examine Competitors Important not only because competitors pose a threat to a young company but some of the bigger players maybe interested in acquiring the business you have invested in, this providing an exit strategy. If entering a highly fragmented market the chance of acquisition is lower than entering on with fewer individual companies. Research the Exit Methods Crowdfunding is considered highly illiquid, this means it is difficult to exit a position once you have entered it. Many projects say there exit plan would include a trade sale, an IPO or sale to private equity. Your due diligence should include potential suitors and there ability and propensity to acquire such a business. Also, a vital part of your research should be calculating a rough valuation for the business at such a point and the amount any acquirer is likely to pay. Don’t Fund a Project That Isn’t Offering Enough Equity or Yield The level of equity or the yield you will receive for investing in a Crowdfunding project should reflect the risk you are taking. Just like government bonds, the yield should be higher for those businesses that are more risky, you must carefully consider how much the business will remunerate you and the risk of you not getting your cash back. Be Clear On the Reason for Funding a Project This sounds obvious but Crowdfunding takes many different forms. You must decide whether you are funding an idea to receive rewards or make a real investment in an innovative start-up company. Many will use Crowdfunding to satisfy their philanthropic urges and other will seek out start-ups business that could change the way the world works and become highly lucrative for those early investors. Numerous projects offer attractive rewards for substantial levels of investment but you have to focus on whether the business has the legs show you any return on your hard earned cash. Test the Product/Service Yourself Unfortunately there isn’t a wide range of 3^rd party analysis or opinion on Crowdfunding projects so to gain a strong understanding of the products and services on offer, experiencing them for yourself is highly desirable.