The Risks Of Equity Crowdfunding

Archetypal business people discussing charts

(Source: Pixabay)

Crowdfunding represents a massive change to the way businesses raise funding, and one criticism that is worth taking seriously is that the changes haven't been throught through. That's a risk inherent in innovation; the players in the crowdfunding sector are making it up as they go along.

The Rise Of The Robo Advisors

Your next financial adviser may be more like Metal Mickey than Michael Milken. If reports we're hearing are true,  a combination of artificial intelligence and a drive to keep down costs means that many forms of financial advice may be taken over by machines.

Your robo-adviser will gather the Know Your Customer (KYC) data, profile you, and make suggestions based on deep data and sophisticated algorithms.

1950s pulp fiction shows robots in control

Regulation Must Serve A Purpose

Rules and Regulations - an old document

Source: Wikimedia Commons

One of the recurring themes of crowdfunding is calls for regulation. Another Crowd believes that overall, the Financial Conduct Authority (FCA) is doing a good job, and the pragmatism, sensitivity and focus of our regulation has a lot to do with why the UK now leads the world in the adoption of crowdfunding and alternative finance.

We were pleased when the FCA resisted calls from an MP to offer stronger investor protections, because it was more important (in our view and the FCA's) to focus investors' minds on the risks they were taking.

IFISA Demand Looks Strong Despite IFAs

the community raises its hands

(Source: Pixabay

The lack of interest shown by professional advisers is proving no obstacle to demand for the new Innovative Finance ISA (IFISA) According to a report today on, peer-to-peer platforms are optimistic and are preparing offerings for the April launch.

"Despite wariness amongst financial advisers about pushing the new Innovative Finance ISA, many peer-to-peer (P2P)  lenders say there is strong interest in the new saving vehicle amongst new and existing customers" says the article, citing a study by FT Adviser.

The Rise Of The Social Shareholder

a social gathering of shareholders

As more people invest in unlisted secutities, it's no surpise that social platforms should evolve to serve social shareholders. This week we learned that Capdesk, a Danish startup, will be opening an office in London in February.

“The identity (of) a shareholder is changing – return on investment is no longer the sole motivator to invest, it is also about the experience. Capdesk accommodates this change and encourages founders and investors to explore synergies to help the business.” Casper Arboll, co-founder.