The Latest P2P News – 29/7/16

P2P News – All The Latest Updates


Hi guys and welcome to our second P2P news edition of the month! As usual, we will be giving you a quick snapshot of the latest news with five key stories. We focus on an array of P2P topics from P2PFA releases P2P lending data for Q2 to looking at how P2P is heating up the world of fintech. Missed our last round-up? If so, catch up here.


P2PFA Releases Peer to Peer Lending Data for Q2

P2P News

The UK Peer to Peer Finance Association (P2PFA) recently released its second quarter numbers for 2016.

Their data indicates that cumulative lending now stands at £5.8 billing with £658 million in lending occurring during Q2. last year, (in the same quarter) total new lending registered at£507,936,000. But Q2 numbers are a dip from Q1 2016 when total new lending came in at £715,421,000. Both the number of borrowers and lenders increased from Q1 to Q2. Zopa remains the largest lender by cumulative total followed by Funding Circle. (Crowdfund Insider, July, 2016)

Chair of P2PFA, Christine Farnish CBE mentioned in a recent Crowdfund Insider article that peer-to-peer lending is now a mainstream alternative finance product – continued expansion in the number of investors and borrowers has clearly shown this,more than 150,376 lenders and 332,107 borrowers currently using P2PFA platforms.

ThinCats, which is a P2PFA member, company founder Kevin Caley also shared his thoughts in the article, Mr. Caley stated : alternative finance “is playing a major role in bridging the UK’s business funding gap.”

He is also stressed that although there is still a lot of uncertainties due to the Brexit vote, peer-to-peer platforms won’t be sitting on their hands and will continue to bring disruptive innovations to the market as well as being an alternative to traditional market based lenders.

Read more on the P2PFA research here.


UK Invoice Finance Platform, Raises Another £7.2M

MarketInvoice P2P

MarketInvoice, which plays in the peer-to-peer lending space by enabling U.K. businesses to raise money from institutional investors and high net worth individuals by ‘selling’ outstanding invoices, has raised a further £7.2 million. (Tech Crunch, July 2016)

MCI Capital, a listed Polish private equity group as well as existing backer Northzone have been involved with MarketInvoice’s funding – which now brings the total investment to just over £18 million.

The company told Tech Crunch that the raised funds will be used to help sustain its claimed position as the leader in invoice financing in the U.K., and also for product development.

In a nutshell, MarketInvoice works with hedge funds, asset managers, family Offices, and high net worth individuals. In addition, real-time auctions are used to determine how much of an invoice’s value will be provided as capital (minus the bidder’s cut), the company then makes money by also taking a small cut.

To sum it up, they enable businesses (from SMEs to larger companies) to free up money owed before an outstanding invoice is paid, thus providing much-needed liquidity. In turn, it gives investors a new asset class. Invoice finance and other forms of P2P lending play into a narrative that has seen banks reluctant to lend to small and medium-sized businesses and interest rates at a historic low, as Tech Crunch’s Steve O’Hear mentions.

Image source : Tech City News

Governance and Regulations are Key to the Future of P2P

P2P news


As mentioned in previous P2P news blogs, governance and regulations are key for the p2p industry, especially in countries such as China which has seen a lot of fraudulent activity (the Ezubao case springs to mind which was briefly mentioned in our last P2P round-up).

So why do we need it? Regulation and governance helps to protect both the investor and borrower, and gives the sector added credibility and will only serve to boost awareness and participation, as Money observer’s Chris Maule points out in an Interactive Investor article.

Here in the UK, measures have already been put in place, the industry here is known for being transparent, for example, the P2PFA make sure its members publish their loan books, reveal bad debt rates and include five years’ worth of credit performance.

The actions of the recent Lending Club case (which you can read about in one of previous P2P blogs) should be a sobering reminder of what could happen if they fail to play their parts in developing a transparent and honest product.

Image source : The Connectivist

P2P Funds Are Unaffected by Brexit vote



Peer-to-peer (P2P) lenders could stand to gain a greater market share as some banks have reduced appetites to lending in the wake of Brexit, according to Chirag Shah, CEO of Nucleus Commercial Finance. (Bridging and Commercial, July 2016)

Nucleus Commercial Finance’s CEO explained that P2P lenders are at an advantage as investors are less likely to withdraw their funding, this is all linked to some lenders that have begun to lose their funding lines as a result of financial turmoil caused by the recent EU referendum.

FundingKnight‘s managing director Jasper Ehrhardt, also agrees that P2P has been untouched by post-Brexit uncertainty.

His view is that P2P has an added advantage of having access to non-institutional funds, which are unaffected by Brexit and are the underlying drivers for continuing the low level of returns available from more traditional vehicles, such as savings accounts.

In addition, he stresses that the incentive has stayed the same, as P2P continues to see above-average rates of return on platforms, compared to bank and savings deposits.

Read more industry views here.

P2P is Heating up the World of Fintech

p2p fintech


We all know about how fintech is revolutionising finance and disrupting the banking sector and never before has the industry seen such a rapid and strong movement until now.

It’s now easier than ever to digitally connect people to money, and P2P lending takes advantage of that, and is growing by the numbers (as previously mentioned in the first news item).

Nikos Antoniade, CEO of easyMarkets, a company specialized in analyzing financial markets, says that the rise of fintech-related technologies is overwhelming, and that despite of all criticism, P2P lending is here to stay. (, July, 2016)

With so many segments of fintech, from payments, insurtech, asset management, etc. P2P is definitely one segment that is heating up, as this chart below from Zopa shows.


Zopa P2P Graph


Image source :


What Are Your Thoughts?

Which of our chosen P2P stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information

The Latest Crowdfunding News – 20/7/16

The Latest Crowdfunding News


Hi guys and welcome to another crowdfunding news edition, as usual, we will be giving you a snap shot of the latest news from the crowdfunding world, this week we predominately stay in the UK, however we end our round-up in Africa and look at the latest crowdfunding start-ups to keep an eye on. Missed our last crowdfunding news update? If so, catch up here.

Why Fintechs Are Turning To Equity Crowdfunding For Investment

fintech equity crowdfunding

Quite a few UK fintechs such as GoHenry, Mondo, and Tandem (who have all raised over £1 million from using equity crowdfunding) – but why have they used this approach?

Firstly, using equity crowdfunding is great for brand awareness and customer acquisition, UK fintechs have attracted significant attention in the media and as a result have raised awareness of their innovative ideas and products. From raising awareness, a majority of fintechs have gained potential investors to sign up for their products.

Moreover, due to the fact that scene continues to produce more and more start-ups by the day, it’s become increasingly hard to stand out. Therefore, offering customers the chance to become shareholders, (like Mondo and Tandem did), companies can drive customer engagement and loyalty.

Start-ups also use equity crowdfunding because it gives them control. This is because they can gain a higher valuation compared with traditional methods. According to research by Beauhurst, direct investors seem willing to accept lower equity stakes for the same investment than VCs or Angels. (Business Insider, July, 2016)

They beauty of using this approach is the diversity of investment sources. Crowdfunding offers an alternative to traditional sources of funding, which could be very beneficial if economic turbulence negatively affects VCs’ willingness to invest. Because of the Brexit, we might see more fintech start-ups turn to crowdfunding.

Read more here.

Crowdfunding : A New Era on The Cards?

Crowdfunding News Crowdfunding Finland

Two months ago, new rules* came into play which allow average people to invest in start-ups through crowdfunding sites that reward investors with equity. The new rules usher in a new era of crowdfunding that is accessible to individuals of all economic backgrounds, as mentioned by Crowdfund Insider’s Christian Catalini.

As part of the federal JOBS Act, Title III rules allows the average investor the opportunity to share in the returns of the “next big idea” as Catalini mentions in his recent article.

President Obama has said he sees it as a game-changer, these set of regulations will help all investors—regardless of income or net worth—will be able to invest in high-potential startup companies.

Title III will therefore help funding for small businesses, an essential vehicle for marketing and branding as well as a tool for building a committed user base for new ventures.

*Rules in the USA.


London-Based Crowdfunding Platform Goes Dutch

Seedrs Netherlands

London-based crowdfunding company Seedrs has expanded its international presence with a new office in Amsterdam. (City A.M., July 2016)

Seedrs, which does already has links elsewhere on the continent, a software development office in Portugal, and back in October it announced a new partnership with Benelux-based bank ING.

Chief executive and co-founder of Seedrs told City A.M. : “We have always had a pan-European vision for Seedrs, and the launch of our Amsterdam office brings that vision one step closer to reality.”


Khan Backs Twenty Crowdfunded Projects Across London

London Property Prices

The London mayor is helping to crowdfund 20 ‘citizen-led’ projects aimed at improving local communities across the capital.

The crowdfunding projects include: ‘Kitchenette Karts’ in Tower Hamlets, a healthy, sustainable fish and chip truck, ‘Old Kent Road Studios’ in Southwark, a project which aims at transforming 60 vacant garages into workshops and studios, and ‘Pengelicious’ in Bromley, a food festival. (KCW Today, July 2016).

Sadiq Khan recently mentioned that: “Our crowdfunding initiative is a chance for all Londoners to take part in the regeneration of their neighbourhoods from the grassroots up. Today I’m pledging support to an extraordinary range of local groups, for projects that will help strengthen their local communities and make London an even greater city.”

Interested in the projects? If so, check them out here.


5 African Crowdfunding Start-ups To Keep An Eye On

Africa Crowdfunding

Africa has seen a plethora of start-ups from all over the continent and crowdfunding has bags of potential to solve the continent’s lack of access to finance challenges.

Here (in no particular order) are five of the most innovative African crowdfunding startups to keep an eye out for.

Usizo – Bitcoin startup Bankymoon from South Africa has announced it will launch a crowdfunding platform, Usizo, that allows public schools in the continent to use blockchain technology to crowdsource utility credits.

This revolutionary concept means that anybody from around the world can make a payment directly from using their preferred crypto-currency, and help fund the energy or water needs of the school.

Realty Africa – Is the first crowdfunding platform that’s dedicated to property investments in Sub-Saharan Africa. The company was launched last year, in a nutshell, allows investors from all over the world to invest in the growth and development of the region.

Realty Africa provides investors with access to markets that have been historically out of reach, allowing them to invest amounts from US$1,000 upwards. Moreover, the platform allows communities and project developers to raise capital, without high interest payments or collateral requirements.

ABREC.FinanceUtile – Originally developed by the African Biofuel and Renewable Energy Company (ABREC) and in partnership with French crowdfunding platform FinanceUtile, is a dedicated crowdfunding platform for SMEs operating in the Sub-Saharan African renewable energy sector.

ABREC.FinanceUtile supports entrepreneurs in the renewable energy space by facilitating the transfer of know-how and technology, while also boosting access to reliable electricity generation in sub-Saharan Africa.

Lelapa Fund – Is a niche crowd investment platform dedicated to African companies (as described on their website). Investors can buy shares online in pre-vetted start-ups and small businesses whose products and services are sold on high growth consumer markets across the continent.

Thundafund – The South African start-up is one of the crowdfunding veterans on the continent, launched back in 2013, Thundafund has raised over ZAR5.7 million (US$396,000) from various crowdfunded projects.

They have recently put together work shops to educate fellow South Africans about how the crowdfunding process works.


What Are Your Thoughts?

Which of our chosen crowdfunding stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information

The Latest Crowdfunding News – 4/7/16

The Latest Crowdfunding News

Hi guys and welcome to our latest crowdfunding news blog post – as usual we will be giving you five stories from the crowdfunding world from the sharing economy is unfazed by Brexit to looking at crowdfunding and the blockchain. Missed our previous crowdfunding news round-up? If so, catch up here.

The Sharing Economy Is Unfazed By Brexit


The UK’s sharing economy could boom to 20 times its worth in just 10 years, according to PwC. (City A.M., June, 2016)

The sharing economy sector here in the UK, which includes the likes of Kickstarter, Uber, Spotify, etc. is currently worth around £7bn.

PwC revealed that the sharing economy industry could see a 20-fold increase in growth by 2025.

Economists at the audit firm mentioned that even though the UK has voted to leave the European Union, the sharing economy’s vast expansion should still be on track.

The fundamental drivers of the sharing economy e.g. technological advancements, demographic change and urbanisation will continue over the long term which is great news for start-ups and as the old saying goes, sharing is caring, and the sharing economy is here to stay.


Baidu Adds Strict Requirements For Chinese Crowdfunding Platforms

China P2P

From the UK to now moving east to China, Chinese search engine Baidu last month announced it would now require crowdfunding platforms to abide to a strict set of qualifications designed to limit promotion from less reputable sites. Baidu mentioned it would no longer open new accounts for crowdfunding platforms to access their “pay for performance” networks unless they were approved (as mentioned in Crowdfund Insider).

If a platform fails to meet the necessary requirements Baidu have stressed that they will remove full access of their promotional services.

This is really good to see, as regulations in this particular world have been questioned for having a lack of strict rules in place.

Chinese crowdfunding platform Baichouhui’s co-founder Chang Zongfeng mentioned in China News/Crowdfund Insider that It’s good that Baidu has added strict regulations, which will benefit the industry in the long term. In addition, he mentioned that equity crowdfunding should have more stringent requirements for investors as it’s riskier than crowdfunding ordinary projects of lower value.

China is known for its vast amount of crowdfunding platforms, it has been reported that the Asian country has 400 crowdfunding platforms as of Q1 of 2016. Moreover, the volume of crowdfunding in China has been estimated to be around 3 billion yuan (about USD $448 million).


Finnish Fintech Pioneer Scores €1.2m To Finance Its Expansion In UK Market

Finland Crowdfunding

Finnish crowdfunding platform Invesdor has been bullish on the UK market despite the uncertainties of the recent Brexit.

The Finnish fintech pioneers closed a fund raise scoring €1.2m to finance its expansion here in the UK.

Invesdor view the UK as the biggest equity crowdfunding market in Europe and say that the fundraise represents an important milestone for their development strategy.

Co-founder and CEO Lasse Mäkelä mentioned in Alfi that : “There are interesting times ahead of us in European equity crowdfunding, and our investors seem to think so, too. Lately, it has seemed like new competitors are popping up everywhere you look.”

Mäkelä senses that the equity crowdfunding market might be moving towards a period of consolidation and believes that a time of mergers and acquisitions for platforms is on the cards.


Blockchain & Crowdfunding

blockchain crowdfunding

A new era of crowdfunding has been revealed from using blockchain technology. CCEDK, a crypto exchange from Denmark which has recently rebranded itself. They recently came up with an idea that they could serve its customers better by acting not primarily as an exchange, but as a gateway into the world of the blockchain.

So how does this work exactly? In a nutshell, crowdfunding over the blockchain enables ordinary people to access investment opportunities that they would never otherwise even see. The exciting feature of crowdfunding with cryptocurrency is that it allows the investor to trade their investment immediately on the trading platform OpenLedger. (Forbes, June 2016)

OpenLedger therefore offers third parties to hold an amount on a specific account in a short period of time in order to further the use for funds, providing an administrative and legal hub for investors.

The beauty of using blockchain technology is that it encompasses :- security (no one can freeze, seize, hack or attack your wealth and your identity can never be stolen; secondly, acceptance (you can spend your money instantly and anywhere where major debit cards are accepted); thirdly, privacy (only those you authorise can see your accounts). Lastly, accountability, having signature accounts which allows to share control of accounts with friends, family, and business associates.

As a whole, these form the Decentralised Conglomerate ecosystem, which is basically designed to boost the chances of success for entrepreneurs, whilst at the same time rewards its own stakeholders. Alignment of interests and incentives is imperative for the sharing economy.

Read more on this fascinating concept here.


Crowdfunding : One Of The Biggest Fintech Developments Of 2016

Crowdfunding News Crowdfunding Finland

Fintech – a buzzword you hear a lot these days, has seen significant expansion with no signs of slowing down as it continues to transform finance.

Besides the likes of big data, cloud computing, and payment innovation, crowdfunding has as risen to prominence in recent years.

From looking at the Massolution Crowdfunding Industry 2015 Report, the crowdfunding industry is worth $34 billion and could continue to grow to $96 billion by 2020.

Ali Ramadan from Bird & Bird mentioned in a recent Wired article on crowdfunding : “It’s another example of disruptive technology changing the status quo in equity and financial services when it comes to access to capital”, he explains. “One of the main reasons we are seeing business turn to crowdfunding is because of the potential to raise funds quickly and with less stringent terms than those which may be imposed by investors outside of a platform”.

Want to know more about crowdfunding? If so, check out our crowdfunding process page.


What Are Your Thoughts?

Which of our chosen crowdfunding stories has interested you the most? We would love to hear from you, feel free to leave us a comment on our Facebook and Google Plus pages. If you prefer to tweet us, tweet @TheHouseCrowd.

In the meantime if you want to know more about Property Crowdfunding do register for our Information Pack which will tell you all about it. 

Register Now For More Information