News Briefing - Crowdfunding, SME And Alternative Finance

many hands in a circle

1.UK – P2P

 

Crowdfundinsider on Abundance’s new round of funding:

 

Abundance, an investment crowdfunding platform and leading “peer-to-peer ethical investment platform,” has closed its equity crowdfunding round on Seedrs.

Abundance states that it originally looked to raise £1.2 million from investors but ended the offer overfunded at £1,575,586. The share offering valued Abundance at £16.6 million pre-money. Abundance reported that more than 1000 investors backed the firm.

Previously funded by more than 75 angel investors, Abundance has raised £82 million since 2012. Abundance has listed 34 “green and socially useful projects.” Specific offerings have ranged from wind and geothermal energy projects to social housing. Abundance has returned over £17 million in principle and interest to its investors for its debt based offerings.”

https://www.crowdfundinsider.com/2018/12/142589-ethical-crowdfunding-site-abundance-closes-round-on-seedrs-at-1-5-millionn/

 

 

2. UK – P2P

 

The Scotsman on Orca’s multi-provider IFISA:

 

“An Edinburgh fintech has landed close to £600,000 in fresh funding to deliver its ambitious development plans, including the launch of a “first of its kind” individual savings account (ISA) in the new year.

Orca, which enables savers to spread their investment across several peer-to-peer (P2P) lenders, raised £574,280 via crowdfunding platform Seedrs, a number of venture capitalist funds and private angel investors.

The aggregator, which has a second office in Belfast, announced in September that it was targeting a £500,000 crowdfunding bid via Seedrs, whose backers include Sir Andy Murray.

Notable contributors to the funding round include Northern Ireland’s TechstartNI and Clarendon Fund Managers, as well as Scotland’s ESM Investments, an angel investment network comprised of more than 80 high-net-worth individuals investing in early-growth-stage technology businesses.”

 

3. UK – P2P

AltFi on the attest from Funding Circle. More bad news…

“Shares in the UK’s largest P2P lending platform Funding Circle have fallen more than 25 per cent in morning trading, following a downgrade from analysts at Citi.

Shares in ing platform Funding Circle have fallen more than 25 per cent in morning trading, following a downgrade from analysts at Citi.

In a note to investors today Citi said there was evidence of credit deterioration in the firm's loans, Bloomberg reports, following on from a separate half yearly report from the Funding Circle SME Income fund, a separate listed investment trust that invests exclusively in loans originated by Funding Circle, two days ago.

The fund said in the half-yearly report that it was expecting lower returns from loans within two annual cohorts - 2016 and 2017 - but this seems to have been interpreted by Citi’s analysts as part of a wider issue.

Funding Circle listed on the London stock exchange in October at 440p, valuing the company at £1.5bn, with today’s current dive this brings the fall in the firm’s share price since IPO to approximately 40 per cent. 

The stock is currently trading around 257p but has hit 240p this morning.  

Funding Circle listed on the London stock exchange in October at 440p, with today’s current dive this brings the fall in the firm’s share price since IPO to approximately 40 per cent.”

Breaking: Funding Circle’s shares plunge 25% - AltFi News


4. UK – FinTech

Electronic Weekly reports on a successful raise by a Shropshire AI company:

 

“Small Robot Company, the Shropshire  agritech start-up, has reached  its Crowdcube equity crowdfunding funding target of £500,000 within minutes of its launch. The campaign is continuing to gather momentum, and the company is now working to reach its stretch targets.

The company’s successful start to its campaign was was overwhelmingly due to backing from the farming community. It is also gathering pace with the technology community, including early investment from Matt Jones, Principle Designer at Google AI.”

Small Robot raises £500,000 - electronicsweekly.com


5. International – P2P

 

Technode reports on the reform of China's P2P lwnding sector:

 

“Only around 100 peer-to-peer (P2P) lending platforms will survive the Chinese market, according to Zhou Hao, chief marketing officer at Fenghuang Finance. This is largely due to the companies’ own shortcomings and Beijing’s crackdown on risky lending. Zhou said the surviving platforms would manage RMB 1 trillion ($145 billion) in capital needs. More than 5,000 P2P platforms have been shut down in an ongoing investigation by Beijing. Just 1,200 remained by the end of November.”