News Briefing - Crowdfunding, SME And Alternative Finance

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1.UK – Equity

The Herald on yet another equity raise from BrewDog.

“BrewDog is inviting beer fans to invest in the business for the sixth time in just nine years, as it raises funds for new breweries, bars and other projects.

The craft brewer told existing investors - known as "equity punks" - over the weekend that it would seek to raise a fresh £7 million.

If the company reaches the targeted amount, it would bring the total raised since BrewDog's first equity crowdfunding round in 2010 to £74m.”

BrewDog bids to raise £7m for bars and breweries


2. UK – P2P


P2P Finance News reports:

“PEER-TO-PEER investors may soon be able to back Islamic finance after European alternative lender Robocash Group partnered with a Shariah-compliant firm in Indonesia.

Robocash Group has teamed up with Indonesian Islamic finance firm Reliance Finance to launch a Shariah-compliant personal finance product in the country, for Muslims who avoid traditional financial services such as loans due to interest payments being deemed as forbidden.

Robocash said Shariah adoption in fintech is still lagging in many countries including Indonesia and said it wants to enhance access to finance for the Muslim population following the Islamic principles.”


3. UK – P2P

P2P Finance News reports:


LendInvest  has secured a £200m funding line from HSBC UK, allowing it to make its first move into the residential mortgage lending space.

The online property lender said it plans to offer its first home loan by the end of the year, which will be available to homeowners who need short-term bridging finance for up to 12 months.

The move is part of LendInvest’s plan to disrupt the £200bn mainstream UK mortgage market as it becomes a whole of market mortgage provider.

Using its marketplace model and proprietary technology supported by institutional backers, LendInvest has lent more than £2bn to borrowers to date, it says, building scale short-term finance and buy-to-let markets. It counts Citigroup, Nomura, European banks and UK-listed challenger banks among its sources of funding.”


4. UK – FinTech


ITProPortal runs a piece by a consultant on trends in FinTech.


“Earlier this year, it was revealed that record levels of investment in UK fintech had been seen over the 12 months prior, reaching a high of £2.6bn. But as the country navigates uncertainties, what can this relatively young industry expect from 2019? Can fintech maintain this increased investment interest, or will trends change as start-up companies look to climb the investment ladder and scale up their businesses?

Investment trends are often driven by the attitudes of those investing. When institutional, venture capitalist, high-net-worth and private equity investors see the potential for value in a sector, we tend to see a trend of increased investment. However, like fintech itself, investment in the sector is disrupting the status quo. These increased levels of UK fintech investment over the past 12 months are instead most likely to have been driven by the investees, rather than the investors. Whilst investor appetite to secure equity in high potential technology business has been present for years, we are now starting to see more companies with a viable product and a ‘go to market’ strategy.

This strategy is starting to appeal to more mature investors, who perhaps may have taken small stakes in these companies at an earlier stage but are now willing to invest more significantly in the fintech sector. For example, we have seen success stories from the likes of Monzo, who recently raised £85m in their Series E fundraise. As the 13th member of the UK’s ‘Unicorn Club’, Monzo sits alongside Revolut, Transferwise and Funding Circle in a list ever increasingly dominated by fintech companies.

As the fintech sector continues to mature, businesses are reaching a level in their lifecycle where their value is perhaps more apparent. Within the sector we have seen a large proportion of businesses publicly listing and others selling to financial institutions at remarkable values of over 20 times their revenue or adjusted profits. We’ve seen these companies turn ideas into reality, which in turn entices more traditionally conservative investors to get involved. One such example of this is was the recent announcement that Transferwise is looking to float part of their business, and it is rumoured that Goldman Sachs will be leading the investment round.”


5. US – P2P


Crowdfund Insider reports:


“Global financial service platform Kabbage announced on Monday it has closed a $700 million securitization. The company claimed it was the largest asset-back securitization (ABS) by a small business online lending platform to date.

According to Kabbage , the oversubscribed transaction saw strong demand from both new and existing institutional investors, further demonstrating the market’s continued confidence in the strength of Kabbage’s platform. Kabbage also reported that to date, it has helped more than 170,000 small businesses access over $6.5 billion in funding via its automated underwriting models which analyzes the live business data of customers to provide a funding decision in minutes.”