News Briefing - Crowdfunding, SME And Alternative Finance

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1.UK – P2P/IFISA

Peer2Peer Finance News reports:

“MORE THAN a fifth of ISA transfers to LendingCrowd’s Innovative Finance ISA (IFISA) have come from stocks and shares or other peer-to-peer lenders, the platform has revealed.

Data from the Edinburgh-based P2P lender shows that, as expected, the majority of transfers to its tax wrapper since launch in February 2017 has come from cash at 66 per cent, but a significant amount has also come from stocks and shares and other IFISA providers.

Stocks and shares ISAs have accounted for 18 per cent of transfers and the remaining 16 per cent were from IFISAs previously held with rival platforms, LendingCrowd said.

 “It’s clear that cash ISAs are falling out of favour among savers who are tired of seeing the value of their money eroded by inflation,” Stuart Lunn (pictured), founder of LendingCrowd, said.

“Our IFISA is proving extremely popular, and we expect demand to continue rising rapidly as more people realise their money could be working much harder for them.”

The P2P platform was among the first IFISA providers on the market and offers an annual rate of six per cent in its auto-lending product and between 5.95 per cent and 14.25 per cent for those selecting their own loans.

It is currently offering new and existing investors up to three per cent cashback when they invest at least £2,500 on its platform by 30 April 2019.”

 

2. UK – P2P

 

Peer to peer lending platform Folk2Folk has relaunched their entire product line. Folk2Folk is a unique online lender as it targets localized loans and has a strategic local presence across the U, according to Crowdfundinsider..

“Folk2Folk explained the changes in a release where management said the range of interest rates would extended. A higher rate of up to 9% would be allowed and a lower end rate of 0.38% per month would “reward borrowers” with a lower risk profile.

Additionally, Loan to Value (LTV) would now be pegged at up to 60% of market value to “help even more businesses” gain access to the capital they need.

Regarding the Innovative Finance ISA (IFISA) the annual arrangement fee is being eliminated to boost investor returns.

Improving the product range and flexibility of their loans is designed to enable more SMEs access debt finance for growth and while investors gain better returns.

Folk2Folk is an online platform that is akin to a matchmaking service where local investors at paired with local businesses in need of finance. Folk2Folk says this model creates additional value through the creation of local jobs, retention of local talent, and helping to contribute to the “vibrancy and sustainability of local economies and communities; something that is of vital importance to us all.”

The range of rates, from 4.5%-9% p.a., is expected to encourage lenders to invest in opportunities that suit their preferences on interest rate, LTV, location, sector and risk appetite. A minimum investment is £20,000 with no upper limit.

Since platform launch, Folk2Folk has financed over £275 million in SME loans. The award-winning platform reports zero losses to investors to date. Folk2Folk was approved by the FCA in 2016 and is a member of the P2PFA thus it adheres to a high standard of lending and transparency.Folk2Folks states that it is ensuring it continues to price risk fairly for both its borrowers and its investors.”

3. US – AltFi

 

R Web carries a release for an SWSX accelerator.

‘Newchip is pleased to announce the launch of its online accelerator at SXSW for entrepreneurs who are ready to take their startup to the next level. The Newchip Accelerator is a thirteen-week online program designed to prepare its participants to launch, scale, and fund their startups.

The Newchip Accelerator features startup training, mentoring, and a curriculum focused on preparing participants to pitch to VCs, angel investors, and to apply for funding on equity crowdfunding platforms. Its online community comprises a group of committed entrepreneurs eager to learn in a dynamic and collaborative environment focused on achieving success. The first cohort launches April 1st and the deadline to apply is March 15th.”

4. International – P2P

 

AltFi News reports the run-off a Spanish P2P platform.

 

"Barcelona-based Loanbook Capital will begin to runoff its loanbook, thinning its portfolio as existing loans are paid off without taking on new lending.

The decision was taken due to fundraising issues that prevented Loanbook from growing its Spanish loan book as an independent company. AltFi understands the business last night wrote to its investors, informing them of the funding difficulties and adding that it wouldn't be accepting new funds at this time.

Loanbook confirmed to AltFi that it has put an orderly process is in place to continue servicing its existing loan portfolio to maturity, and is considering its strategic options for the longer term."

5. International – AltFi

 

IndianWeb2 carries news of a report on Indian altfi.

 

“E-commerce and consumer Internet companies have raised over $7 billion  in private equity and venture capital funds in 2018, says a report by EY.

Of the total investment, startups such as Oyo, Swiggy, Byjus, Paytm Mall, Pine Labs, Zomato, Udaan, Policybazaar and Curefit collectively raised the lions share of USD 4.6 billion in 2018, says the report.

The report covers sectors such as travel and hospitality, edutech, payments and wallets, fintech and healthtech, among others, as part of the e-commerce and consumer internet segment.”


Regards,