Emerging Crowd, the first crowdfunding and investment platform focused on unlisted growth-stage companies in frontier and emerging markets, was launched in the UK.

The platform, which was co-founded by Lucien Moolenaar and Will Tindall, will offer the UK-based investors the opportunity to buy equity and bonds issued by businesses focused on selected frontier and emerging markets.

“Our aim is to build an online community of investors who are passionate about growth opportunities in emerging and frontier markets,” said Tindall.

“There are some incredible businesses with huge potential in these markets, but until now the vast majority of investors have had no way to reach these companies, let alone consider taking a stake in them,” he said.

Investors will be able to sign up to Emerging Crowd and connect directly to a carefully screened selection of growth companies raising money online.

Most of the companies raising funds on the platform will already have achieved impressive results, but like many small and medium-sized businesses around the world, they find themselves in a “funding gap” where the banks have failed to provide financing for growth.

All of the companies will be carefully vetted by the platform’s experienced investment analysts, and the investments will be backed up by hands-on due diligence and screening to meet the required investor protection standards. 

Unlike managed funds and ETFs, Emerging Crowd will open the door for ordinary investors, which will have the opportunity to engage directly with these businesses and to ask questions of the management teams.

Emerging Crowd will also manage a streamlined investor relations service on the platform so that investors can see their money at work. 

Emerging Crowd will look for quality unlisted companies and entrepreneurs with a proven track record, backed by strong management, good reputations and decent growth prospects.

The platform will initially focus on familiar sectors such as technology, consumer goods, agribusiness, property, and lifestyle, and the team have already held talks with a number of businesses interested in raising money on the site when it launches later this year.

“We think there will be great demand from UK-based investors for these businesses,” added Moolenaar.

“Not only do they offer the prospect of rewarding returns over the longer term, but investors will also be supplying new capital that can act as a much-needed catalyst for growth in these countries,” he said.

“Our members will have the opportunity to remain engaged with the companies and they will be able to directly see the impact their investments have in these rapidly developing economies.”

South Africa, as well as frontier markets such as Nigeria and Botswana offer investors a way to benefit from the opportunities found only in developing economies - which are often characterised by higher rates of growth, consumer-driven businesses, young populations and rapid urbanisation and industrialisation.

Nevertheless, investors will need to feel comfortable with the higher risk profile of investing in unlisted companies in frontier and emerging market countries.

In order to register to invest on the site, investors will need to meet the eligibility requirements laid down by the Financial Conduct Authority for investment crowdfunding.