News Briefing - Crowdfunding, SME And Alternative Finance

crowd concert

1.UK – Equity

“Investors who backed money transfer startup Revolut during a crowdfunding round two years ago have now realised returns of 19x on their original investments, according to data from Crowdcube and reported in FinExtra.

Revolut originally raised £1.01m via Crowdcube in July 2016, only a year after the company was founded, and at the same time as Balderton Capital and Index Ventures made investments. At that point the company was valued at approximately £42m.

In April this year, Revolut received a $250m investment led by DST Global, setting a valuation for the company of £1.2 billion, making it one of the first crowdfunded unicorns. At the same time, crowd investors were offered the opportunity to sell their shares back to Revolut, realising a handsome return on their original investment.”


2. International - FinTech


The Cambridge Centre for Alternative Finance (CCAF) at the Judge Business School at Cambridge University in the UK, has launched their second annual Blockchain study following their first successful blockchain benchmarking report in 2017, according to Crowdfundinsider.

“CCAF recently completed their 2nd Global Cryptoasset Benchmarking Study and is in the midst of its global Fintech Benchmarking report.

CCAF is widely viewed as the leading entity providing academic research for global financial innovation. The Centre’s report are used by regulators and policymakers around the world to help guide Fintech innovation.

The 2017 CCAF Blockchain report reviewed how both public sector entities and private enterprise are pursuing Blockchain or Distributed Ledger Technology (DLT). The authors captured data from more than 200 central banks, corporations, startups and other public sector institutions.

This year’s benchmarking report is being segmented into three different areas:

  • Blockchain Operators & Users – The purpose of the survey is to collect information on the level of adoption of blockchain and distributed ledger technology (DLT) in an enterprise setting
  • Central Bank & Public Sector Blockchain – The purpose of this survey is to help officials understand how blockchain and distributed ledger technology (DLT) systems are being developed and used in the public sector across all five continents.
  • Blockchain Vendors Survey -The purpose of the survey is to collect information about permissioned platforms built on blockchain and distributed ledger technology (DLT), as well as software and technology vendors that is useful to a wide group of stakeholders. With this research we are aiming to collect useful benchmarking data while not exposing any trade secrets or security practices that could assist a competitor or adversary.”

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3. International – Equity


Israeli moves...


“Equity crowdfunding has been around since 2012, when then President Barack Obama signed into law the U.S. legislation known as JOBSact—Jumpstart Our Business Startups. The legislation regulated and authorized funding of small businesses by easing many of the country's securities regulations.


4. International – P2P


Linked Finance, an Irish peer-to-peer (P2P) lending platform, recorded its strongest quarter to date in the three months to the end of June, facilitating over €10.1m to Irish SMEs, according to the Irish Independent.


“This followed on from a strong start to 2018, with total lending for the year now more than €18.7m, up 65pc on the same period in the previous year.

The increase in lending is down to both the volume and size of loans. The number of loans that went live on the platform rose by 39pc in the period to 335, with average loan size up 19pc to almost €56,000.”


5. International – AltFi


International Tax Review runs an overview of Mexico’s “crowdfunding ecosystem”.

Mexico’s alternative finance market has grown significantly. Regulators now face the challenge of setting rules that allow the industry to flourish, while in parallel trying to ensure they will have sufficient powers to adequately supervise such a constantly evolving space.