News Briefing - Crowdfunding, SME And Alternative Finance

Health researchers look at xrays

1.UK – P2P

 

Crowdfund Insider reports research from 4th Way that indicates P2P can carry less risk than equity investing.

 

“Peer to peer lending research firm 4thWay has published a note touting the benefits of investing in P2P loans in contrast to more volatile equity investing.  4thWay says that Brexit induced market volatility should compel investors to consider investing in online loans.

4thWay says it is simple for lenders (ie investors) to diversify across thousands of investments – loans – as opposed to a typical stock investor who diversifies across hundreds of shares through share funds. Additionally, lenders are frequently in a better place in the queue compared to equity investors when recovering losses is involved, in case a company struggles or fails.”

Research Firm Touts Benefits of P2P Lending During Brexit Uncertainty | Crowdfund Insider

2. UK – SMEs

 

P2P Finance News on SMEs’ fears that Brexit will hurt.

 

“SMALL businesses could struggle to meet their essential running costs due to Brexit-related cashflow problems, new research suggests.

A survey of 335 UK small- and medium-sized enterprises (SMEs) conducted by insurance premium finance company Premium Credit found 45 per cent are very concerned about managing their cashflow in the event of a poor Brexit outcome.

Almost half (47 per cent) said they are also worried about their ability to pay for business insurance.

The Federation of Small Businesses recently warned that UK SMEs are under increasing pressure, partly because of Brexit uncertainty since the vote in 2016, but also because of high business rates and rising employment costs. This has led to business insolvencies reaching a four-year high in the year to the fourth quarter of 2018.”

 

Business Quarterly looks at a new round funding for a biometric tracker,

 

“Innovative biometric tracking service, Forth, which helps people to navigate their way to better health using simple at-home finger-prick blood tests, has secured new investment from its first institutional investor.

 

The new investment came from The Development Bank of Wales, together with a group of angels from Angels Invest Wales and South West based angel investors, including Craig Gulliford, CEO of Creo Medical.

Gulliford, who was an early investor in the company during its first raise on Crowdcube in 2017 and has since joined the board, said: “I have an affinity for technology-based companies that have an innovative and disruptive proposition backed by great people. Forth ticks this box and the management team crucially also have the energy, passion, determination to succeed at all costs.”

  

4. US – FinTech

 

Scotiabank and The Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM), commonly referred to as Tec de Monterrey, announced last week they have teamed up to launch Factory A in Mexico City, which is the bank’s first fintech accelerator program, according to Crowdfundinsider.

“According to the duo, 10 fintechs will be selected for the program and must consists of young entrepreneurs from Latin America to join the program’s Entrepreneur Coworking ecosystem. Each fintech will participate in prototype labs and receive legal counsel, public relations support and mentorship from leaders across the bank and Tec de Monterrey’s networks.”

5. International – SMEs / Alt-Fi

 

Ventureburn runs a piece that claims to offer an all-you-need-to-know guide to SME funding in the alt-fi space.

 

“This article is the most comprehensive guide for anyone who wants to get involved with, or have a better understanding of, the country’s fast-growing startup space. It is a part of a series of articles we will pilot, which will also include the West African and East African startup space.

We have scoured South Africa’s entrepreneurial landscape and hand-picked some of the top players to get you started, looking at all sectors from education, investment (angel, venture capital, private equity), government, accelerators and incubators to media players (print and online).

Bookmark this one. The intention is for this article to be a living thing, which will grow into the ultimate resource for South African tech startups and entrepreneurs. Also, with your comments and suggestions we hope to create a clear overview of the people and organisations that influence and shape South Africa’s tech venture space.”