News Briefing - Crowdfunding, SME And Alternative Finance

crowd in nightclub, seen from a DJ point of view

1. UK - Equity

Not everyone is impressed by the latest round of BrewDog's Equity for Punks.One of Scotland's leading newspapers reports that the brewery's latest raise stopped well short of its target."BrewDog has raised over £23 million in its fifth UK crowdfunding round, more than doubling its initial target of £10m but falling well short of the £50m it had hoped to achieve."

Coverage in the Glasgow Hearald.

2. UK - P2P Lending

Yesterday we reported that KPMG was woried about regulation. Today MoneyWeek reports theFCA is "threatening a clampdown" on per-to-peer lending.

"Can you be trusted to be a sensible investor? The Financial Conduct Authority (FCA) has been pondering whether investors looking to put some money to work in alternative finance are capable of making sensible and informed decisions about the range of products on offer. If they can’t, should their cash be channelled into more open, transparent, mass-market products, such as unit or investment trusts or exchange-traded funds?

"I realise this all sounds a bit policy-wonkish, but when it comes to the world of alternative finance, especially peer-to-peer (P2P) lending, this regulatory attitude may be about to have a direct impact on your investments. A few weeks ago, the FCA produced a consultation paper entitled “Loan-based (‘peer-to-peer’) and investment-based crowdfunding platforms: feedback on our post-implementation review and proposed changes to the regulatory framework”.

MoneyWeek has the full story.

3. UK - Fintech

What is involved in launching a FinTech firm in the United Kingdom? A leading London law firm has produced a 20-page booklet on the subject, in the hope of attracting a few clients.The report addresses topics like recruiting andmanaging employees, protecting the firm's intellectual property, regulatory concerns and much more.

"Launching a Fintech Firm" is an Allen & Overy report, supported by TheCityUK.

4. UK - Alt-Fi

Britain's small and medium sized housebuilders are being encouraged to to consider alternative finance.

Trade body UK Finance and the Federation of Master Builders (FMB) have launched a guide for SME housebuilders to better navigate the development finance process, and access the funding they need.

The guide points towards mainstream banks and building societies as popular sources of funding, but it also suggests that SME developers should consider alternative finance options such as crowdfunding. This could be peer-to-peer lending, or equity crowdfunding.

More details about this story on Peer2Peer Finance News

5. International - Renewables

The continet of Africa needs to double its output of electricity by 2030 if it is to keep up with demand, according to research conducted by global legal firm DWFChristian Hellmund, Partner in Energy and Renewables, recently co-authored the report "What's holding Africa back? Delivering renewable energy in a challenging market." 

Economic growth, changing lifestyles and a growing population are all reasons to consumer more electricity. Mr. Hellmund is convinced renewable energy is set to play a huge part in the future.

The original story is published in Africa Outlook Magazine.

6. International - Equity

A "where did it all go wrong" story about an equity crowdfunded business in New Zealand.

for Riot Foods told shareholders Riot Foods this week as the founders wrote as a letter to shareholders revealing the business needed to find $1 million in the next two weeks or risk being sold.

It seems a lot of things went wrong, including a supplier going into receivership and an entire factory rusting over.

Newshub New Zealand has the story.