News Briefing - Crowdfunding, SME And Alternative Finance

crowd in nightclub, seen from a DJ point of view

1.UK – P2P

Peer-to-Peer Finance News reports:

“European lending marketplace Mintos has raised €5m (£4.3m) as it aims to launch banking services to its customers.

Latvian venture capital firm Grumpy Investments, which was previously known as Skillion Ventures, has made the investment into Mintos.

Mintos says the capital will be used to launch a its own IBAN personal bank account and debit card. The peer-to-peer lending platform is also planning to double the size of its team as it expands globally.

Personal accounts will allow Mintos investors to make and receive payments from around the world as well as receive their salaries directly into a Mintos account.

“Providing customers with a personal IBAN account and debit card will mark a major leap in our services and significantly improve the user experience,” said Martins Sulte, Mintos’ chief executive and co-founder.”

 

2. UK – P2P

 

There’s more on the woes at the Ranger IT, from Peer-to-Peer Finance News.

 

“Analysts are predicting the early termination of Ranger Direct Lending’s (RDL) management will reduce costs but have raised questions over the timetable for closure and value that can be gained from the fund’s remaining assets.

In a note to clients, analysts at Numis Securities Research responded to the news that RDL will terminate its investment management agreement with Ranger Alternative Management II on 12 February 2019 – more than two months ahead of schedule.

Furthermore, RDL has announced a special dividend payment of $1.10 (85p) per share, which will be paid to investors on 16 November.

However, Numis has warned that despite these positive developments, there could be more pain for RDL investors further down the line.

According to its most recent portfolio update, RDL’s net asset value (NAV) was up by 0.15 per cent in September, but a further write-down is expected in relation to the fund’s defunct Princeton holdings.

As of 30 September 2018, Princeton’s assets were valued at $28.5m, representing 14.1 per cent of RDL’s of net assets. It is not yet known how much of these funds can be recouped before the closure of the fund.”

3. US – FinTech

 

Crowdfund Insider reports a raise for a robo-adviser.

 

“Toronto based Fintech dig1t Inc. has closed on a CDN $ 9 million series A funding round. The Robo-advisor provides wealth management tools powered by advanced analytics and risk management tools. The d1g1t platform offers portfolio management services to professional advisors and their individual investors.

The funding round was led by Purpose Financial, which is headed by Som Seif and backed by the Ontario Municipal Pension Retirement System (OMERS). Other investors in d1g1t include Extreme Venture Partners and Portag3.

The company reports that their  wealth management platform is now going live with four clients, responsible for managing an approximately CAD $13 billion of assets under management (AUM) for over 5,000 households.”

Robo-Advisor d1g1t Raises CDN $9 Million Series A 

4. US – FinTech

TechCrunch reports:

Bain Capital Ventures (BCV), the venture capital arm of the private equity giant Bain Capital, has brought in $1 billion to invest in startups across industries and stages.

The capital has been spread across three funds: $650 million for its eighth flagship vehicle, $250 million for a co-investment fund focused on growth-stage investments and an additional $100 million directly from the partners at Bain Capital, which will be deployed on every investment out of the latest fund.

Founded in 2001, BCV is known for its investments in LinkedIn,  Rent the Runway, SurveyMonkey, SendGrid and DocuSign. Initially, the firm was more of a growth-stage investor, though it’s warmed to early-stage companies, making a total of 106 early-stage investments, 52 of which were at the seed stage, since 2013. The firm says that’s triple its total volume of seed and Series A investments from previous years, thanks to the members of its West Coast investment team, who are responsible for striking a majority of BCV’s early-stage bets.”

 

5. US – Equity

 

Crowdfund Insider offers updates on SEC raise rules:

 

“SEC Regulation A (commonly referred to as Regulation A+) was implemented by the SEC in 2015 pursuant to major Congressional legislation, the Jumpstart Our Business Startups Act of 2012 (the JOBS Act). It allows companies to raise up to $50 million in a 12 month period from both accredited and non-accredited investors – and broadly solicit and advertise the offering – without engaging in a fully SEC-registered IPO, and without the same burdensome level of ongoing disclosure to investors. 

You will, however, have to prepare a fairly detailed disclosure document, including audited financial statements, and have it reviewed and “qualified” by the SEC before you can accept investor subscriptions.  The review process can generally be completed in a two-month time frame if you engage qualified securities counsel and auditors to guide you through the process.”