Tagged: risk

Weighing the Risks for the “Crowd” in Equity Crowdfunding

Risk Base Jumping Dive Fall

  Now that the long awaited and much anticipated federal crowdfunding rules under Title III of the JOBS Act have become effective, startup companies can raise seed capital from everyday, non-accredited retail investors through online equity crowdfunding platforms. Many of these investors are excited to… Read More

Fitch: Confidence in Marketplace Lending ABS Gets Hammered

Risk Money

The marketplace lending industry is getting hammered of late.  The after-shock reverberations following the resignation of Lending Club co-founder and CEO Renaud Laplanche continues to be a hot topic of conversation. Today, Fitch has come out with a report stating “investor confidence in marketplace lending… Read More

Singapore’s Silver Bullion Debuts One-Month Bullion Secured P2P Loans

Gregor gregersen

On Wednesday, Singapore-based bullion retailer, Silver Bullion Pte Ltd., announced the launch of its 1-month bullion secured peer-to-peer(P2P) loans. Silver Bullion previously offered loan durations of 6 months, 12 months and 24 months secured by physical gold and silver collateral stored in its vault, The Safe… Read More

Crowdfunding Platforms Must Be Conscientious In Disclosing Borrower Credit Information

Guard Safety

  In translating the JOBS Act into final regulations, the SEC sought to protect investors in myriads ways: limiting certain opportunities to accredited investors, implementing caps on the annual amount certain investors may invest, and requiring certain disclosures, among other things. Understandably, the bulk of… Read More

P2P ISA Challenge: “We Recognize that We as an Industry Need to Work to Persuade Advisers to Embrace P2P Lending”

risk free rate of return

The Innovative Finance ISA is a huge opportunity for the peer to peer lending industry.  Yet the introduction of the new ISA also highlights an ongoing issue for P2P platforms: The profound need to inform and educate potential investors and advisors of their services. Sure… Read More

Symbid States Investors are Ignoring Risks. Lack of Transparency & High Interest Rates Creates Unsustainable Trajectory

Symbid Campaign graphic

Symbid [OTCQB:SBID], one of the world’s first investment crowdfunding platforms, is warning about industry risk.  The company is warning that “investors are too preoccupied by interest rates and ignoring the risks”. According to Symbid, this lack of awareness has compelled them to launch a media… Read More

Crowdfunding Risks And Regs: FCA Chair And Acting CEO Tracey McDermott Speaks Before Treasury Select Committee

Tracey McDermott

Last week, Financial Conduct Authority Chair and acting CEO Tracey McDermott visited Parliament last week, and spoke before the Treasury Select Committee on topics including alternative financing sources. She addressed questions of risk for investors in crowdfunding and peer-to-peer lending, as well as the role of regulation…. Read More

SIPP P2P Lending Surges Despite Financial Advisors’ Risk Anxiety; Anticipate Updates from ISA and FCA

UK House of Parliament London BIg Ben Clock Tower

Self Invested Personal Pensions (SIPP) assist marketplace lenders such as Ablrate and Ratesetter (the first consumer P2P platform to be available through a SIPP),  in sourcing loans.  Research from Yorkshire Building Society “highlighted a lack of understanding about peer-to-peer investment (P2P) and the potential risks it poses… Read More

In Germany, Awareness of P2P Lending Lags UK By Three Years, And Lags US By Another Three Years: Video

lendico

    In Germany, investment crowdfunding is doing well–both debt-based and equity-based crowdfunding jumped notably in Q1 2015 versus Q4 of 2014, according to numbers from the German Crowdfunding Network. What of the country’s peer-to-peer lending? Dominik Steinkuehler, co-founder and CEO of Lendico, a multinational P2P lending platform,… Read More

Advice: Conducting Diligence to Mitigate Risk for Deep Technology Startups

Mitigating Risk investing in Technology

As more investors start to look to equity crowdfunding, to get beyond the typical mobile app startup, it’s important to see what’s going on in deep technology. We define deep technology as companies founded on a scientific discovery or meaningful technological innovation. Deep technology startups… Read More

In China, ‘Finding The Right Balance Between Financial Reform And Risk Prevention Will Be One Of The Most Important Issues Of Our Time’

tightrope walker

  “Finding the right balance between financial reform and risk prevention will be one of the most important issues of our time,” writes Ruizhe Zhang of Dagong Global Credit Rating Co Ltd, in a recent China Daily op-ed on ECNS. Following the release of Internet finance guidelines… Read More

Singapore’s Silver Bullion Launches Bullion-Backed P2P Loan Platform, Among World’s First

safe house silver bullion

    Would a “Safe Room,” a storage facility filled with 80 tonnes of silver and a tonne of gold, worth about S$120 million total, increase your confidence about participating in a peer-to-peer loan platform? Silver Bullion, a Singapore-based bullion retailer, is counting on it. The company just launched… Read More

How Good Is Too Good? The Underwriting Risks Of Crowdfunding Real Estate Deals

Risk Money

The awareness and popularity of real estate based equity crowdfunding (i.e. “RECfunds”) continues to grow exponentially. As do the number of real estate crowdfunding portals. RECFunds offer substantial benefits to today’s investors including access to multiple types of projects, smaller barriers to investment, and portfolio… Read More

Orchard Co-Founder & CFO Angela Ceresnie: This is Only the Beginning for Marketplace Lending, This is the Future of Credit

Angela Ceresnie Featured

  “The technology Orchard builds connects hundreds of millions of dollars of institutional capital to a rapidly expanding number of originators across multiple asset classes. This ultimately touches borrowers in an efficient and transparent manner, which truly makes what we do “many to many.” Orchard… Read More

Welcome to Australia, MoneyPlace: Newest P2P Lending Market Begins Trading in June Quarter

moneyplace-logo

MoneyPlace, Australia’s newest P2P lending market, has confirmed that it plans to begin trading in the June quarter, joining current popular platforms SocietyOne, RateSetter and ThinCats, according to BankingDay. The Melbourne-based company will focus on the personal loan market, with a minimum loan of $5,000 on three-year… Read More

Indiegogo’s Reputation May Hinge On Outcome Of GoBe Campaign

GoBe App

Put simply, the significance of automatically calculating calories consumed and burned cannot be overstated. Currently, calorie databases such as MyFitnessPal require manual input, and prove laborious when calculating home-cooked meals or more exotic cuisines. While the utility of food-logging with weight loss has been supported by medical… Read More

PayPal Calls For More Disclosure For Pretail-Powered Crowdfunding Campaigns

paypal

In a blog post published yesterday, PayPal Chief Risk Officer Tomer Barel announced a set of changes regarding how PayPal will approach crowdfunding as a payment provider. Consider this excerpt, emphasis ours… Together with the crowdfunding sites, we identify if campaigns are strictly fundraising or… Read More

Crowdfunding & What You Should Know About Online Payments Before Launch

online payments

Throughout 2013, PayPal and crowdfunding project creators repeatedly found themselves at odds. First it was Lab Zero Games, the company behind the hugely popular campaign for Skullgirls. Paypal froze Lab Zero’s account only to later release all but $35,000 of Lab Zero’s Indiegogo cash. It… Read More

Only The Beginning, Maybe: Putting Kickstarter’s Insane Growth In Perspective

Kickstarter Logo Black

For a lot of people, crowdfunding is Kickstarter. That is just how big New York City’s rewards-based crowdfunding stalwart has grown. Yesterday saw the release of Kickstarter’s 2013 recap. We covered it here on Crowdfund Insider, and it was inevitably picked up by just about every blog… Read More