happy to take risks for higher returns

Peer-to-peer lending may have begun to change people's perception of investing. Savers are reading the risk warnings and voting with their money - and a significant number are choosing the riskier options, in the hope of bigger rewards.  

young woman offers you a juicy apple

The relationship between risk and returns isn't new - here's an article from six years ago on exactly the same subject - and it certainly isn't peculiar to crowdfunding.  But we don't think messages about responsible and realistic investing have been getting through to the crowdfunding community. Now, it is starting to change.

IFISA Confusion: We Checked The Facts

We've been reading allegations that the regulator doesn't see eye-to-eye with the taxman over the new Innovative Finance ISA (IFISA).  FT Adviser broke the story on Tuesday and it was picked up by Crowdfund Insider and Money& Co. yesterday. 

This news is worrying, if true. As we reported two weeks ago, lending platforms are going through an obstacle course to get their IFISA offerings approved by both the FInancial Conduct Authority (FCA) and HM Revenue and Customs (HMRC) before the new tax year starts on the 6th April. If the organs of government are arguing over the details, businesses and taxpapers cannot resolve the uncertainty. 

UK Startups Want To Stay In Europe

bar chart showing strong support for EU membership

Britain's startup entrepreneurs value our membership of the EU and will be voting 'Remain' in the refrendum, according to a survey published today.

The survey was conducted by Coadec, the Coalition for a Digital Economy, which was founded by tech entrepreneurs and  campaigns for government policies that support digital startups and help them contribute to the UK's economic growth.

Powa Technologies, A Unicorn In Trouble

The Lion and the Uncorn

Powa Technologies, a British 'unicorn' company valued at £1.8billion, was forced into administration on Friday afternoon, after, astonishingly, it ran out of money. We understand that investors withdrew funds after the Financial Times reported that the mobile commerce company had been struggling to pay its staff and suppliers and had only $250,000 in the bank.

Powa has never raised money via crowdfunding. All its investment rounds have been done in the mainstream of finance. But we're covering the story here because we've read such negative press about crowdunding and failure in the last week or two, and we want our readers to be able to make a relevant comparison.  

Now Peer-To-Peer Really Can Be Alternative

This morning's Financial Times suggests that the time has come for peer-to-peer lending to shed the word 'alternative' and admit that it is thoroughly mainstream. The FT clearly doesn't share our understanding of the word, or the way that finance has developed in the last two years.

dictionary definition of alternative

We agree with the writer, Emma Dunkley, when she says that when Zopa launched in 2005, nobody saw what was coming.

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