News Briefing - Crowdfunding, SME And Alternative Finance

escalator ascending into light

1.UK – FinTech

AltFi reports:

Nutmeg has launched new API integrations with fintech apps Yolt, Emma and Money Dashboard. 

The connections will give Nutmeg’s 80,000 customers the ability to see their investments alongside current accounts, savings products and credit cards from other providers.

More specifically, itt will allow customers to see their Nutmeg ISA, Lifetime ISA, pension, general investment account and Junior ISA balances in the apps alongside other financial products they hold.  

Matt Gatrell, chief operations officer, Nutmeg, said: “Providing our customers with a single view of their wealth – be it their current account transactions, emergency savings pots, or their long-term investments – helps people to better understand their own financial position." 

The Open Banking initiative, which launched in 2018, aims to give consumers much greater control and visibility of their financial information and allows the regulated financial institutions that they use to share information securely.”

2. International – FinTech

TechCrunch reports a timely initiative:

 

“The new “normal” offers new opportunities. That’s the thinking behind a new pre-seed funding program from Heartcore Capital . The European consumer-focused VC usually invests in startups at seed and Series A, but recognising that many potential founders are in lockdown and with time of their hands, is moving to the top of the funnel with the launch of a pre-seed fellowship programme.

 

3. US – FinTech

 

Marvellous diction from Crowdfundinsider in a piece suggesting that equity crowdfunding will replace venture capital, post-Virus… Nurture those abandoned sprouts.

 

“As VC funding dries up Equity Crowdfunding (EC) is ideally positioned to nurture the abandoned sprouts.

 

Since the VC industry was officially founded 74 years ago it has seen very little innovation. To date it relies on good-ol-boy networks to find and evaluate startups and “gut feelings” (not data) serve as the primary drivers behind investment decisions. It’s no wonder that around only 2% of VC investment goes to women-led startups (despite 39% of businesses being women-led), and only 3% of VC funding goes to black or Latino led startups. What’s more, 74% of VC funds have zero female investors. Or, that despite all the amazing innovation that the world has seen in previous years, that the vast majority of VC doesn’t provide any returns.”

 

4. International – FinTech

Oxford University’s faculty of law runs a guest piece from an academic at the University of Tel Aviv on what Covid-19 might do to cryptos – and whether we should care.

“The empirical evidence on Covid-19 reveals some interesting insights, which can help make sense of investors’ behaviour during a time of crisis. In our paper ‘How Crisis Affects Crypto: Coronavirus as a Test Case’, we analyse the market cap and trading volume of the top 100 cryptocurrencies and check how they correlate with the outbreak of the virus in general and with the number of identified infections and deaths in particular. We find that, on average, each new Covid-19 case has led to an inflow of money into the cryptocurrency market, causing the value of tokens to increase. However, the relationship between the spread of the virus and cryptocurrencies has a U-Inverse shape, ie initially more Covid-19 cases led to higher investments in the cryptomarket, but there was a tipping point after which the effect reversed. “

 

5. International – FinTech

 

Bunq, the Dutch app-only bank, has announced it’s launching joint accounts for its Premium and Business account holders, according to AltFi.

“With Bunq+1 users will be able to create an account for anyone they want to, including partners and children.

Bunq+1 business users will be able to create accounts for employees helping them track expenses and company spending easily. 

All new users will receive their own card and will be able to spend and deposit money freely. 

Bunq’s CEO, Ali Niknam, who founded TransIP, the third biggest domain name and web hosting provider in the world, said: “At bunq, we are inspired by our users to create new features that makes life easier.”

“By listening to their feedback we have developed this elegant solution that makes shared finances easy for children, (co-)workers and partners all in one go.” 

Earlier this month it was revealed that Bunq was on course to help its customers become carbon neutral within the year following the widespread success of its Green card that lets users plant a tree every time they spend €100.

The digital bank also announced that to date it had helped users plant over 100,000 trees, the equivalent to 32,560 flights from Paris to New York.

As of September 2019, Bunq launched in all EU countries and, despite launching in non-Euro currency countries, including the UK, it remains a Euro-only bank.”