News Briefing - Crowdfunding, SME And Alternative Finance

Crowd investing is more interesting than archetypal business people discussing charts

1. UK – P2P

 

An alternative finance fund is in difficulties.

Troubled nvestment trust Ranger Direct Lending (RDL) has announced that Jonathan Schneider has stepped down as a director.

The alternative finance-focused fund, which is in the process of being closed down, said on Monday that Schneider is leaving with immediate effect after assisting with the transition of new board members appointed in July to begin the winding-down process.

“Schneider remained on the board following the company’s annual general meeting earlier this year in order to assist with the transition to the then newly appointed directors and now that this transition is complete, he believes it is an appropriate time to step down from the board,” RDL said in a stock market update on Monday.

The trust announced in June that it would be closing down, following investor outrage over management and performance.

RDL said it does not intend to appoint a replacement for Schneider and Brendan Hawthorne will replace him on as chair of the audit committee.”

Peer-to-Peer Finance News.

2. US – Equity

 

Crowdfund insider looks at equity inesting.

“Investing in early-stage firms is highly risky. As this publication has stated time and again, many, if not most, early-stage firms will fail or simply bounce along failing to achieve the founder’s expectations of great financial success.

Investment crowdfunding platforms typically list mainly startup or growth stage firms – so most are not making money yet as they look to scale aided by risk capital from angel investors, VCs, and/or retail investors.

If you are not a risk-tolerant individual and you are considering backing an early stage firm, it may be better to invest in an ETF, or another fund, and skip the crowdfunded offer. But if you are willing to acknowledge that all of your money could be lost, and you have the skill set to do some due diligence, then maybe early stage investing is for you. You may also experience some outsized investment returns. Investment crowdfunding can be somewhat similar to what VCs expect to achieve – if you hold a diversified portfolio. A few big hits can make up for all of the dogs – and perhaps in a big way.”

Investing in Crowdfunded Companies: Concept & Team Count but Pay Attention to Deal Structure

 

3. US -FinTech

 

Is the SEC doing a “go slow” on blockchain securities? 

Investment crowdfunding platform StartEngine launched a Reg A+ self-crowdfunding offer for security tokens some time ago. Unfortunately, the offering has not yet been qualified by the Securities and Exchange Commission, reports Crowdfundinisider.

“Last week, StartEngine opened up a “limited time” $10 million security token offering (STO) using the Reg D 506c securities exemption – an offering only open to accredited investors.

According to an email circulated by StartEngine,  the Reg D STO will only remain open until the Reg A+ STO is qualified

For investors participating in the Reg D offer, tokens may be purchased for $7.50 each or a 25% discount to price expected in the Reg A+ STO. A minimum investment for the accredited offering has been set at $10,000.

Under Reg D, issued securities must be locked up for one year. Under Reg A+, securities can become immediately tradable – a characteristic of the securities exemption that has made it of interest to the STO/ICO realm.

StartEngine is not alone in having to wait on the Feds to qualify their offering documents. In fact, this publication is not aware of a single Reg A+ security token offering that has ever qualified. The SEC has taken a go-slow approach to issuing securities on the blockchain.”


4. International – FinTech

 

AltFi looks at FinTech and identity in developing countries.

 

“In developing countries, where 20 per cent of individuals surveyed by Findex 2017 reported the main reason for not having a bank account is lack of a proper ID, financial technology providers are leading efforts to close the gap between unbanked individuals without IDs and access to financial services. However, the potential of fintech companies to deliver alternative IDs is undercut by financial service providers’ ability to conveniently use the IDs in their daily operations.”

5. International – FinTech

The Thailand Securities and Exchange Commission (SEC) is expected to approve the first initial coin offering (ICO) portal at some point this month, according to a report in the Bangkok Post.

“The approval follows a royal decree from last May that stipulated that the Thai SEC would be the main regulator for digital token offerings and undertaking of digital asset businesses. The Royal Decree on Digital Asset Businesses B.E. 2561 (2018) is designed to regulate and supervise offerings of digital tokens and undertaking of digital asset businesses, including exchange,s brokerages, and dealing in crypto.

But it appears the first approval may be on track but there are others in the queue. The Post states that six businesses are seeking licences to operate as a digital asset exchanges: Bitcoin Co (bx.in.th), Bitkub Online Co Ltd (bitkub.com), Cash2Coins Co Ltd (cash2coins.com), Satang Corporation Co Ltd (tdax.com), CoinAsset Co Ltd (coinasset.co.th) and Southeast Asia Digital Exchange Co Ltd (seadex.io). There are two other businesses who are looking to operate as digital asset dealers: Coins TH Co (coins.co.th) and Digital Coin Co Ltd (thaiwm.com).

Any platform that lists ICOs is expected to provide an element of due diligence before the offering is made available to investors.

Thailand has been fairly innovation-friendly when it comes to Fintech in general. The southeast Asian country joins a handful of other nations which are seeking to create bespoke rules to encourage ICOs – not ban nor discourage them.”