Opinion

FCA RULES FOR NON-READILY REALISABLE SECURITIES AND IMPACT ON CROWDFUNDING

FCA RULES FOR NON-READILY REALISABLE SECURITIES AND IMPACT ON CROWDFUNDING

BY Dr Avtar Sehra Quantitative Analytics and Risk Management Director Introduction The FCA Consultation Paper (CP13/13) and the resulting Policy Statement (PS14/4) outline the FCA’s position on investment (equity/debt security) crowdfunding, and how this differs from loan crowdfunding (P2P/P2B). These papers highlight the significant risks investors face when investing in unlisted securities that are hard to value independently or sell on a secondary market. As a result it is required that firms offering such investments on crowdfunding platforms (or using other media) only promote these to certain types of retail investors (discussed below). Where no advice has been provided to retail clients it is also proposed to…

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Crowdfunding Growth: the United Kingdom leads

Crowdfunding Growth: the United Kingdom leads

The Increase of Crowdfunding in the UK iCrowdNewswire The JOBS Act of 2012 gave rise to a whole new industry in the U.S. Crowdfunding has grown by leaps and bounds all over the world, but nowhere has it grown as quickly and broadly as it has in the United Kingdom. According to an article published in Forbes last year, alternative funding in the UK increased 91% from 2011 to 2012. Peer-to-peer lending grew by 211% and equity crowdfunding grew a whopping 618% in the UK during the same time period. Since 2011, an estimated 5,000 SMEs have accessed early stage, growth, or working capital through alternative…

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Lending Club’s IPO and the Next Phase of Crowdfunding

Lending Club’s IPO and the Next Phase of Crowdfunding

By Steve Cinelli, CrowdFunding Beat  Sr.Contributing Editor, Lending Club Valued at $5.4bn in IPO ,The P2P and crowdfunding industry has entered a new, and possibly more legitimate space, in the framework of financial services. I refer to the recent S-1 filing of Lending Club (LC), which elevates the profile of both the company as also the distributed finance industry overall. Lending Club’s claim to an expected $5 billion market capitalization can be viewed as a major success in terms of value creation, market opportunity and the growth of new shadow banking methodologies. We have seen crowd platforms, whether in peer-to-peer lending (P2P) (Prosper and LC), real estate crowdfunding (Fundrise, Realty Mogul),…

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Crowdfunding: The journey to IPO

By Jean Miller, Equity crowdfunding in the UK has exploded. According to innovation promoter Nesta, equity–based crowdfunding grew by more than 600 per cent between 2012 – 2013, from just under £4 million to over £28 million. A new generation of investors is willing to get behind Britain’s great start-ups and support the brightest and best entrepreneurs in the hope that they will be the next Facebook, Amazon or Google. For those early-stage businesses harbouring hopes of a future market-listing, crowdfunding offers the opportunity to raise finance, grow sustainably and gain valuable experience of working with shareholders which will enable a smoother, more successful, transition to IPO…

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The rise of Impact Investing

CrowdfundingFeature

by angel news uk in Investment, People have always had a conscious and a sense of what is morally right and wrong. For example, charitable giving dates back through all stages of human history to help those in a vulnerable position. Whilst this usually is done through people giving away any spare income, it is only more recently that investors have seen this as a way to get a financial return whilst doing social good. In 2007, the Global Impact Investing Network (GIIN) was conceived by a small group of American investors who gathered together to discuss the emerging impact investing industry. A year later, a broader group of global…

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