Abundance Investment has made several changes to its secondary market, including making it easier for investors to sell investments and for lenders to compare and buy them.
The ethical investment platform has created a clearer process for sellers to help them set a fair price for their investment and see how it compares to what other investors are looking to sell.
Abundance has also simplified the process of buying an investment to cut down the time it takes to complete a sale for both the buyer and seller.
In addition, the platform has made it easier for investors to see which investments are available to buy, filter them by impact sector or investment terms and more easily compare investments that have been put up for sale.
Buyers can see which seller is offering the lowest price and how that impacts the effective return for the lender purchasing the investment.
“We developed some improvements to the secondary market which make the process simpler for both customers to trade,” said Bruce Davis (pictured), managing director of Abundance.
“Customers value the secondary market as a way to diversify their investments and also to invest in particular types of projects from the 43 different investments we have funded through the platform since 2012.
“An increasing percentage of customers joining Abundance have bought investments through both our primary issuance (companies raising finance for green projects) and the secondary marketplace (customers seeking to sell investments) – 40 per cent of new customers in the last 12 months alone.
“Abundance pioneered the creation of secondary markets in crowdfunding, which has been widely copied.
“The development of secondary markets is an important pillar in the maturity of investment crowdfunding as a financial sector and allows customers more choice in the way they build up a diverse portfolio of individual investment in green and socially positive projects or businesses.”
Earlier this year, Abundance revealed that the platform narrowed its losses in 2020 as the pandemic hit, but has forecasted rising revenues and profitability within “the coming years”.