News Briefing - Crowdfunding, SME And Alternative Finance

many hands in a circle

1.UK – Equity

 Crowdfund Insider reports on Crowdcube’s latest figures.

 

“Last week Crowdcube published a quarterly report providing additional insight into the crowdfunding platforms operations. The UK based platform published the following comparative metrics indicating significant growth versus the same quarter year prior:

Key metrics for Q1 2019 compared to Q1 2018

  • £1.8 million revenue; an increase of 50%
  • £42.3 million of pledged investment; an increase of 6%
  • £29.3 million successfully invested; an increase of 16%
  • 51 pitches funded; an increase of 4%
  • 33,000 pledged investments; an increase of 8%
  • 29,000 successful investments; an increase of 29%
  • 40,000 member registrations; an increase of 31%
  • 1.3 million web visits to Crowdcube; an increase of 6%It is notable that top line revenue increased by 50% as the company pushes towards the long road to profitability.”

2. UK - P2P

Citywire reports on the difficulties of investment managers with capital in P2P.

“Fund managers Mark Barnett and Neil Woodford and other investors in P2P Global Investments (P2P) are having to be patient as the turnaround in the UK's first listed peer-to-peer lending fund takes longer than expected.

Annual results published yesterday showed the £632 million investment trust delivered a 5.21% return on net assets last year, up from 3% in 2017 when Pollen Street Capital, manager of rival Honeycomb (HONY), took over the struggling loan portfolio.

That performance masked the disappointment of the company not hitting its dividend target, however. In November 2017 P2P, which lends shareholders' capital through lending platforms, set a target of paying a covered 15p per share dividend by half way through 2018.

In the end P2P, in which Barnett and Woodford hold stakes of 33% and 14% respectively, paid total dividends of 48p per share. This was up from 47p the year before, but at a quarterly rate of 12p. Worse, the first three dividends of the year were uncovered by earnings although the fourth quarter payment was covered by reserves and offers a comparatively high yield of 5.8%, according to Numis Securities.”

P2P Global promises jam tomorrow after dividend miss - citywire.co.uk

3. UK – AltFi

P2P Finance News reports on a 'watchlist' tool from Bond Mason, which helps lenders keepan eye on under-performing loans..

“MORE than 10 per cent of BondMason’s portfolio is on a watchlist to monitor loans that are at risk of falling into arrears or default.

The direct lending investment manager operates a watchlist that monitors adverse issues such as whether a loan goes over term or misses a repayment.

Loans are put on the watchlist if the investment team believe they are at risk of non-performance and are then put in recovery if steps are taken to ensure funds can be returned to investors.

BondMason said 12.7 per cent of its book is on the watchlist, of which 7.5 per cent is being monitored and five per cent is in recovery.”

4. UK – AltFi

 

Johnny Mercer MP, a figure arguably on the fringes of the LCF scandal, was a guest on an episode of Have I Got News For You, taped on Thursday and airing tonight.

Meanwhile Finance Feeds, the marketing arm of a foreign exchange firm, reprises the LCF/Mercer saga as it sees it. The opening paragraph is a classic of “citizen journalism”.

5. International – FinTech

 

Value Walk looks at blockchain development in various countries in Continental Europe.

Blockchain Startups: A By-The-numbers Look At Europe's Key Leaders

6. International – FinTech

 

The Daily Hodl reports on crypto lending at a new exchange.

“Digital asset loan provider Genesis Capital has issued over $1.5 billion in loans since launching its crypto lending platform in March of 2018, adding $425 million in the first quarter of 2019.

An affiliate of Genesis Trading, one of the largest over-the-counter cryptocurrency brokerages, the New York-based lending platform offers institutions and market-makers the ability to borrow Bitcoin and other digital currencies in large sizes over fixed terms with a minimum loan size of $100,000. Total loans in the first quarter of 2019 increased by 17%.

The loan book is denominated in a mix of cryptocurrencies, including Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin and Ethereum Classic, with Bitcoin capturing 63.5% of loans originated.

Borrowing of the number one cryptocurrency has been consistent among high-frequency trading firms in need of capital with data showing that most of the Bitcoin loans were made to hedge investments, implement market strategies or invest in businesses, as opposed to price speculation.”