The Latest P2P News – 18/8/16

P2P News – All The Latest Updates

 

Hi guys and welcome to our August P2P news blog round-up, as usual we will be giving you five of the latest stories from the P2P world. Today we start our round-up by looking at credit card giants Visa and MasterCard who are diving head first into P2P payments to focusing on UK SMEs who are flocking to P2P. Missed our last P2P News round-up? If so, catch up here.

 

Visa and MasterCard dive head first into P2P

Mastercard Visa P2P

A new partnership with Visa and Mastercard will help grow the reach of the clearXchange network, which allows customers at its member banks to make no-fee peer-to-peer (P2P) transfers.

This is for users who have a US-issued debit card, they will be able to use Visa Direct and Mastercard Send respectively to transfer funds in real time from holders of accounts at clearXchange’s member banks, which include Bank of America, JPMorgan Chase, US Bank, and Wells Fargo.

For major credit card networks this is a huge push to go digital. Both credit card titans have been working on their API platforms as well as rebranding their services. The Visa-Mastercard partnership gives clearXchange another string to its bow as it tries to grab digital P2P market share.

These partnerships should open up the world of P2P payments to an entirely new segment of the U.S. population, it can be inferred that it should in turn spur more payments of this type. A U.S. consumer survey revealed that 59% would use P2P payments due to convenience. In addition, 29% of those surveyed said they would use P2P payments for incentives.

 

Samsung Pay takes on PayPal in P2P payment

Samsung P2P

Sticking with payment giants, Samsung is also said to be planning to add a person-to-person, or P2P, transaction function to the mobile payment solution this year and will compete with PayPal’s P2P service Venmo which has gained popularity in The States and Japan respectively.

PayPal recently said the Venmo service saw the amount of transactions processed through the app increase 140 percent on-year to $4 billion in the second quarter. (The Investor, August 2016)

In Samsung’s native South Korea, Kakao, operator of mobile messenger KakaoTalk are spearheading the mobile P2P payment sector.

Commentators have mentioned that no single company is currently leading the mobile payment solution market, the adoption of a P2P function, if deployed, could give a boost to the mobile phone giant in increasing its presence in the market.

 

P2P in China: Why Firms Need Better Risk Controls

China P2P

This is one P2P issue that has had appeared regularly this year and something we have covered in a previous P2P news blog. P2P in China has become a controversial subject due to fraudulent activity taking place which resulted in a number of arrests.

Since 2015, many P2P platforms including Ezubao, the Dada Group, the Kuailu Group, the Zhongjin Group and others have been charged with illegal fundraising, involving tens of billions of yuan. (Wharton, University of Pennsylvania, August 2016)

However, this has not only happened in China, back in May the U.S. Treasury Department released a report criticising the peer-to-peer (P2P) lending business and recommended it be more tightly regulated (like it is here in the UK).

By the end of May this year, China’s P2P industry reached 2.036 trillion yuan (about $300 billion in transaction volumes).

Kaixindai‘s Zhihan Zhou was interviewed by the University of Pennsylvania and mentioned that the challenge for the industry in China goes from small to big. Many P2P platforms start from the lowest end (individual consumption credit) without gradual evolution. This causes trouble subsequently.

He uses U.S. based company Lending Club as an example – It originally hoped to evaluate personal risk based on data extracted from Facebook, Twitter and other social platforms. That is in America, which has much more sophisticated credit investigation and personal data systems than in China. So you can imagine a large amount of P2P business based on personal credit in China will meet trouble in operation if there is no appropriate risk control system in place. (Wharton, University of Pennsylvania, August 2016)

In addition he was asked about why do many P2P companies in China fail, Zhou said it could be linked to expanding too quickly, e.g. their operational capabilities including data accumulation and risk-control models haven’t caught up. He stresses that the industry requires the practitioner to understand both the internet and finance. People from traditional banks tend to stress more on risk control, but less on USX, especially on Internet-user experience. It’s all about balance.

Interested in both P2P and China? Read the full interview here.

 

How Brexit Has Impacted P2P Lending

Brexit crowdfunding

Managing director and founder of Funding Circle, James Meekings recently spoke to Bloomberg about Brexit and P2P Lending.

Bloomberg’s Adam Satariano asked James an array of questions, firstly he asked – “A key part of your business is having access to the European single market, Brexit has caused uncertainties are you thinking of changing your base of operations?”

James mentions that they have various offices in Europe from Berlin to London and have to abide by regulations in every country that they operate in. He also mentioned that the EU referendum doesn’t make a difference to how they behave in different countries.

Another question that was put forward by Mr. Satariano was about Lending Club and how they’ve been going through tumultuous times with its stock collapsing and questions about its internal controls, he asks James how their situation impacts the industry,investors, banks, and hedge funds that they rely on.

James openly admits that is has been a challenging year – from the worries of the Chinese economy, the Lending Club challenges, plus the EU referendum. He says the Lending Club challenges are isolated and are about control issues, in the UK we have a dedicate framework, and for Funding Circle they are seeing institutional investors being more aware and asking more questions about their operational risk framework, which he says is quite right. They have been reassured by the answers that the company has given them.

Watch the full Bloomberg interview here.

 

UK SMEs Flock to P2P Lending Boosting Jobs and Housebuilding

P2P News

The p2p and marketplace lending industry is driving small business and economic growth, particularly in areas hit hardest since the financial crisis, a new report suggests. (Altfi, August 2016)

A report by the Centre for Business and Economics Research (CEBR) revealed that SMEs are increasingly using p2p and marketplace lending platforms to meet their financial needs.

The findings showed that the North East of England was using this particular form of the alternative finance the most. In England, it was the region that was most affected by the 2008 financial crisis.

The CBRE’s research which was produced with Funding Circle, examined loans made through the platform to small businesses since 2010. The results found that lending by p2p platforms in the UK to small businesses rose by 50 per cent from the beginning of 2015 compared to the beginning of 2016. In addition, it claims Funding Circle’s loans have boosted the UK economy by £2.7bn since 2010, supporting 40,000 new jobs and helping small house builders to add 2,200 new homes.

CBRE and Funding Circle’s research also revealed that 61 per cent of borrowers saw their revenue increase as a result of taking a loan, while nearly half of the SMEs reported a rise in profits.

 

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 Info

The Latest P2P News – 20/6/16

P2P News – All The Latest Updates

 

Hi guys welcome to another edition of our P2P news blog. This week we start our news update by looking at the alternative finance challenges in mainstream lending for the SME market to focusing on the protection that P2P investors need. Missed our very first P2P round-up? If so, click here.

 

One In Six SME Owners Seeking Finance Say They Have Been Turned Down By A Mainstream Lender

SMEs P2P

Leading specialist lender Amicus conducted a study recently and found out that one in six (16%) SME owners seeking finance say they have been turned down by a mainstream lender (such as a high street bank).

Nearly a third of SME owners stated in the research that their inability to secure finance terms with a mainstream lender meant they had lost out on a business deal or investment opportunity. Because of this, SMEs have gained an interest in alternative finance – including forms such as property finance, crowdsourcing, invoice finance, asset finance and P2P lending.

Just over half of the SME owners that took part in the research believe that the huge amount of flexibility that alternative finance offers, is more appealing for SMEs to use, the number is up from 45% in 2015.

The respondents’ views on alternative finance included :- greater ability to lend (46%) was second and longer payment terms (34%) was third. Speed (30%), specialist knowledge of their clients’ industries and challenges (29%) and more compelling payment structures (27%) was ranked fourth, fifth and sixth respectively. (Stats taken from Finextra)

Over half of the respondents said they have already used alternative finance or considered using it.

Image source : Business Europe

Online Lenders Hit Back At The Deloitte Report

P2P Deloitte

Deloitte recently released quite a brutal report on marketplace lending, predicting that it will not pose a threat to the mass market or to banks or that it will be significant.

Those in the industry were quick to hit back at Deloitte’s reports. For example, Assetz Capital CEO Stuart Law shared his views on Business Insider saying that : “When a system fails, like the banking system in 2008, new entrants will emerge to correct the mistakes. We’ve seen a huge growth in the peer-to-peer finance sector because of that failure, and it’s no surprise that questions are being asked over how banks and Peer to Peer will sit together in the future.”

He also went on to say that he sees no reason why banks and peer-to-peer lenders can’t operate side by side as they are not addressing exactly the same markets.Last year his company and RBS announced a partnership whereby if RBS was unable to provide a business with a loan, it would pass the relevant details to Assetz Capital, which will work with the business to develop an appropriate loan package to suit both peer-to-peer investors and the business.

Deloitte’s report also states that P2P is more expensive than banks and whilst that may be true for some platforms, however, the likes of Assetz Capital are very competitive against challenger banks due to having a  low cost of funding and are expected to become more and more so with the introduction of the new Innovative Finance ISA (IFISA).

Read more industry opinions here.

Image source : Linc inc

Indian P2P Platforms Look At Blockchain Technology

India Blockchain

P2P companies in India (Faircent, Micrograam and i-lend) are looking at exploring blockchain technology in order to increase transparency levels.

India’s economictimes.com reported that these start-ups aim to serve as a “ledger system” to automate and record transactions on their platform. However, they have to wait for approval from the Reserve Bank of India for integrating the technology into their systems.

Micrograam’s founder, Rangan Varadan told Econotimes : “This can be done without the use of cryptocurrency. This could be a transformational tool in doing payment transactions.”

The Reserve Bank of India released a consultation paper that mentioned that P2P platforms in the country cannot directly engage in money transactions between the lender and the borrower, once the credit underwriting process has been conducted.

A fintech report by Nasscom and KPMG stated that there is huge scope in understanding the potential of blockchain technology in managing p2p remittances in the Asian country.

New to blockchain technology? If so, watch the video below.

 

China’s P2P Lending Faces A Regulatory Shakeup

China P2P

 

Staying in Asia, we now look at P2P in China (in our first P2P blog we also looked at Chinese P2P – view here), in a recent video spotted on Yahoo Finance, Lufax CEO Gregg Gibb enlightens CNBC viewers in a brief interview that there are thousands of P2P lenders out there in China and that from day one there has been a few practises that haven’t been right and as a result regulator pressure is coming in as there is a large need for borrowing, investing, and what working out is becoming to be clear.

Gibb stressed that a high level of transparency needs to go up and as soon as you create transparency, regulation becomes more easier. The CNBC news interviewer questioned Lufax’s transparency efforts, he told her that they make it very clear to every investor what they are investing in, who the money is going to and also to make it clear about the contractual relationship. Moreover, he mentions about the importance of using tools – e.g. to show how to rate and measure something. To sum it up, he says that it is all about the transparency aspect in P2P.

Although there isn’t a “one size fits all” approach to P2P, in my opinion China can look at The UK when it comes to P2P, over here, P2P companies have to record all transactions (the above example of Indian companies using blockchain would be good for companies around the world), as well as submitting full loan books and the performance of investment returns.

Watch the CNBC interview here.

 

P2P Investors Need More Protection

P2P protection

 

Andrew Tyrie, who chairs the Treasury Select Committee has stressed for the need for more protection for P2P investors.

Mr Tyrie challenged lenders’ systems of checking creditworthiness and asked how peer-to-peer lenders made sure they were getting accurate information about the risks. (Telegraph, June, 2016).

In a letter which he sent to thee Financial Conduct Authority (FCA), he stated : “Whether, and if so to what extent, investors would benefit from stronger consumer protection now needs careful thought. Poorly informed investors may be left with a false sense of security about the balance of risks versus returns.” (Telegraph, June, 2016)

Since April this year, P2P lenders have been allowed to offer their products inside an ISA.

The issue here is that there are a lot of lenders out there that are yet to be fully regulated by the FCA.

Christine Farnish, who chairs the Peer-to-Peer Finance Association, replied back saying that P2P websites are audited frequently, plus all members are required to publish in full the details of their loan books to ensure that investors are able to hold platforms to account on credit assessment.

As mentioned in the above news item and looking at the previous paragraph, there is a high amount of transparency in the P2P industry in the UK, however, it clearly shows that there needs to have more regulations set in stone, especially from the consumer side. Read more on the topic here.

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 – 13/4/16

Crowdfunding News – All The Latest Updates

Hi guys and welcome to another fortnightly crowdfunding news edition. As usual we will be looking at the latest goings-on in the crowdfunding world from exploring a secret Crystal Palace subway to looking at how researchers are turning to crowdfunding to develop an Alzheimer’s drug.

 

Crowdfunding Campaign To Reopen The Secret Crystal Palace Subway

Crystal Palace Subway

The Friends of Crystal Palace Subway are crowdfunding to reopen a stunning 150-year-old secret underpass to the public. (Time Out London, April, 2016)

The subway which was opened back in 1865 for upper class passengers travelling by the railway station nearby was also used as an air raid shelter, a children’s playground and a site for illegal raves! It was closed 20 years ago due to safety concerns.

Currently, The Friends of Crystal Palace Subway have raised enough money to start reinstating safe access, however, they still need more funds to carry out all the necessary maintenance on the subway.

Are you interested in helping maintain a heritage site? If so, get involved here.

Image source : Friends of Crystal Palace Subway

 

Government Tax Schemes Boost UK Crowdfunding

UK Crowdfunding

The success of the UK’s crowdfunding industry has been driven by the Government’s tax efficient investment schemes, such as the EIS and SEIS according to SME Insider.

Research from equity crowdfunding platform Growthdeck shows that 96% of all investment opportunities on crowdfunding platforms are in the Enterprise Investment Scheme (EIS) or the Seed Enterprise Investment Scheme (SEIS) that offer significant tax breaks to investors in exchange for funding small to medium enterprises.

The co-founder and CEO of Growthdeck, Gary Robins explains to SME Insider that : “Crowdfunding platforms have become a vital conduit for small businesses to access they funding they need to exploit their growth potential, providing a much-needed boost to the UK’s SME sector.”

In addition he also mentions in the article that government schemes like EIS and SEIS offer investors attractive tax breaks which are vital for sustaining growth in UK SMEs.

Growthdeck’s research shows that two thirds (66%) of all investment opportunities promoted on crowdfunding platforms claim to be EIS- eligible, in constrast, 39% claim SEIS eligibility.

 

A Lack of Regulation Holds Irish Crowdfunding Back

Irish Crowdfunding

Back in one of our blog posts from November we briefly touched upon the Irish crowdfunding scene, for those of you who don’t know much about crowdfunding in the Emerald Isle, Ireland has invested €401 million in start-up companies which makes it an ideal place for the sector and has the potential to be one of the strongest crowdfunding markets in Europe.

If it has the capital and has the potential – then why isn’t it doing well? Firstly, it has been documented that the Irish environment lacks bespoke legislation which may leave gaps in consumer protections and secondly from an Oireachtas Jobs, Enterprise, and Innovation committee report, legislators appear to have been comparatively slow to account for the increasing popularity of crowdfunding is in contrast with UK crowdfunding which is praised in the report.

More regulations and a better understanding from the government on how the concept works is a must, especially for indigenous players such as www.iCrowdFund.ie and www.FundIt.ie to prosper.

 

Football INDEX Raises £400,000 During Seedrs Campaign

Football INDEX

A crowdfunding story for all you footy fans out there! Football gambling platform Football INDEX recently launched a crowdfunding campaign on Seedrs to raise £800,000 and aims to be the world’s first football based stock market.

How does it work? Users build a portfolio and buy and sell players and can deposit as little as £10. Footballers are currently for sale from just £1.

Football INDEX CEO Adam Cole mentioned in Crowdfund Insider that : “My team and I built Football INDEX because we were convinced that most people didn’t want to trade traditional stocks and shares in companies like British Gas and HSBC. People want to invest their knowledge and ‘trade their passion’, and there is no shortage of knowledge or passion in football.”

Since Football INDEX’s launch, its Seedrs initiative has already raised £400,000. It is set to close in June and currently raised £800,009 on the platform.

Unfortunately at The House Crowd we can’t help you invest in Premier League players but if you’re interested in investing in property, why not take a look at our latest investments here.

 

 

Researchers Turn To Crowdfunding To Develop Alzheimer’s Drug

Alzheimers Crowdfunding

Tests on a drug with the potential to stop Alzheimer’s in its tracks are being funded by raffles, pensioners’ donations and a sponsored walk – because the research team cannot find money for pre-clinical safety tests any other way. (The Guardian, April 2016)

A team of researchers led by Dr David Allsop from Lancaster University’s division of biomedicine and life sciences are running a crowdfunding campaign in order to help fund necessary preparatory testing on their drug in the belief they may be looking at a cure for the progressive brain disease. Currently Dr Allsop and his team of researchers have raised £52,000 towards their target of £165,000.

Due to the global financial crisis, access to funding for basic and clinical research has been blocked, which has lead to some health researchers – particularly in the U.S. to turn to crowdfunding. This seems to be quite a common thing in the medical industry, back in one of our crowdfunding blogs in February we looked at biotech firm Axol Bioscience who smashed its crowdfunding campaign and over-funded up to a total of £1 million (view here).

Donations as little as £5 to carry out smaller tests is enough to keep research advancing until more lucrative sources emerge. Dr Allsop told the Guardian : “We are really excited because we think that we are on to something that stands a chance of working, but without crowdfunding we would have been stumped.”

Do you have an interest in medical science and crowdfunding? Read more on the topic here.

Image source : The Guardian

 

 

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 – 2/3/16

Crowdfunding News – All The Latest Updates

Hi guys and welcome to our fortnightly crowdfunding news edition, as usual we will be covering an array of interesting crowdfunding topics from around the world in five minutes. If you missed our last edition, you can catch up here. Today, we once again clock up the air miles from travelling to Canada via Kenya to ending our crowdfunding journey in Bradford.

 

UK Crowdfunding – A Worldbeater For Start-Ups

Crowdfunding News

The University of Cambridge and Nesta have just published their report on the progress made by the online alternative finance sector during 2015. (Huffington Post, February, 2016).

The report’s findings indicated that equity crowdfunding saw very considerable growth during 2015, increasing from £84 million in 2014 to £332 million and property which also featured in this segment accounted for £87 million of equity finance.

It was also revealed that £245 million of pure venture finance came from crowdfunding platforms such as Seedrs and Crowdcube. The platforms were estimated to have collectively raised 15.6 per cent of all venture funding in the UK. This really is an amazing achievement and puts the UK on the map for starting a business.

A key point from The University of Cambridge and Nesta is that by having full access to finance will allow SMEs to create jobs. The Huffington Post mentions that 60 per cent of people employed in the private sector work for small businesses and access to finance for them is vital for the UK’s future prosperity and growth.

 

LSE Research Backs Crowdfunding

Crowdfunding Research

From The University of Cambridge and Nesta’s research to now looking at research conducted by the LSE on crowdfunding.

LSE professors Saul Estrin and Susanna Khavul believe investors in crowdfunding campaigns behave in an ‘economically rational’ way, and whilst they do collaborate there’s no evidence of a ‘stampede effect’ among investors. (Proactive Investors, February 2016)

The professors have spent two years conducting analysis of data gathered from the Crowdcube platform and have used a qualitative approach in gaining investors thoughts on crowdfunding.

Crowdcube founder Luke Lang mentions that “The findings quash concerns that the crowd is made up of naïve ‘dabblers’ who stampede into supporting pitches that seem popular or cool.” (Proactive Investors, February 2016)

He stressed that the concept of crowdfunding is a rational marketplace mechanism where both investors and entrepreneurs come together and share their expertise that leads to the crowd to make well-informed decisions.

Interested in Estrin and Khavul’s research? Read more here.

 

Help Kenya, Not Kanye Campaign Boosts Canadian Charity

 

Help Kenya Not Kanye

U.S. rapper Kanye West’s plea for help with his supposed $53-million personal debt might instead lead to more donations for a African charity, based in Edmonton, Canada.

A couple of weeks ago, West pleaded for help with his finances on Twitter and even asked Facebook CEO Mark Zuckerberg for money!

He even made a shocking statement on social media that money spent funding his music is a better investment than opening “one school in Africa,” which he said wouldn’t really help “the country.” (CBC News, February 2016)

After making this outrageous comment, a former Kanye fan, Gabriel Ferrer, created his very own crowdfunding site called “Help Kenya, Not Kanye.” The public can donate money to 10 charities that help people in the east African country.

Todd Lorentz, the managing director of One Child’s Village stated in CBC News “What a sort of creative, brilliant idea of using the play of Kenya and Kanye, those words, to really shine the light on Africa and children and the needs of people in Africa, and specifically in Kenya”.

The Edmonton based charity relies on public donations to support Kenyan children who have been orphaned by HIV. They provide basic needs for the children, such as food, water, education, clothing and uniforms and school books.

Donations have started trickling into the foundation. Lorentz mentioned that the crowdfunding campaign has given the charity a major boost, especially considering donations have been down since the economic downturn in Alberta.

Last year the Canadian charity built a school in the capital Nairobi which currently has 200 students enrolled, and hired 10 local teachers.

Ironically, thanks to Kanye’s outrageous comments, hopefully more schools will be set up in the East African country. Serendipity has been a blessing in disguise for the charity and for the people of Kenya.

 

New Crowdfunding legislation Will Make It Easier For Australian Startups To Raise Capital

Australia Crowdfunding

 

New legislation to allow unlisted public companies to raise money through crowdfunding from mum and dad investors has passed through the lower house. (Business Insider Australia, February, 2016)

The bill faced heavy criticism from the opposition and will allow unlisted public companies with less than $5 million in assets and turnover to raise up to $5 million via crowdfunding each year.

Shadow minister for startups Ed Husic disagreed with minister for small businesses, Kelly O’Dwyer’s statement (who mentioned that the bill will help start-ups and other small businesses that may have difficulty accessing equity funding) and stated concerns around red tape, particularly the need for startups to become an unlisted public company if they wished to raise funds from using crowdfunding.

Mr. Husic mentioned that the opposition would propose changes to the crowdfunding laws after he had reviewed the final report.

If you would like to know more about crowdfunding in Australia, check out one of our previous crowdfunding blogs which features Australian property crowdfunding. click here.

 

Bantams Turn To Crowdfunding For Redevelopment

 

Bradford City Crowdfunding

League One side Bradford City has launched a crowdfunding campaign to redevelop its Coral Windows Stadium (aka Valley Parade).

The crowdfunding campaign, set up through ‘football fan-funding’ site Tifosy, is aiming to raise £250,000 to improve the facilities at the Coral Windows stadium from seat refurbishments to renovating the players’ changing rooms.

So far the campaign has raised £44,628 and has 52 days left.

Many football league teams have used Tifosy to raise funds, one that sticks out is Portsmouth’s training ground fundraising campaign which raised £270,000.

As much as we love footy at The House Crowd, unfortunately we can’t help you crowdfund your club, however, we can offer you some guides on Manchester (North and Central) and also our South Yorkshire guide. If you’re thinking of investing in these areas and are a footy fan, you’re spoilt for choice when it comes to watching quality football! ?

 

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 – 17/2/16

Crowdfunding News – All The Latest Updates

Hi guys and welcome to our fortnightly crowdfunding news edition, as usual we will be covering an array of interesting crowdfunding topics from around the world in five minutes. If you missed our last edition, you can catch up here. Today, we once again clock up the air miles and start our crowdfunding journey in New Zealand and finish in Greece for some baseball action!

New Zealand Beach Hits Crowdfunding Target

New Zealand Crowdfunding

A crowdfunding campaign in New Zealand to raise funds to buy a beach for public use has successfully hit its target.

Campaigners had until Tuesday to raise NZ$2m (£914,000, $1.3m) and place a bid on the currently private beach according to the BBC.

More than 36,000 people have now supported the beach campaign and donations continue to flow in from all over the country.

People were quick to get involved and the money was raised in less than a month after a group of friends plotted the purchase.

The beach in Awaroa, South Island, has been owned by a Wellington-based businessman since 2008. A real estate company has advertised the stunning area as a remarkable seven-hectare utopia” with “three modest buildings dotted amidst the mature native bush”. (RealEstate.co.nz)

The crowdfunding campaign’s Give A Little page has stopped showing the running tally once it hit NZ$2m, so the total amount of money has been raised is unknown.

About a fortnight ago, New Zealand’s prime minister mentioned that he wouldn’t rule out a government contribution if needed.

Crowdfunding Saves SMEs

crowdfunding smes

Since the 2008 financial crisis, SMEs have looked at alternative ways of gaining funding and crowdfunding platforms such as Kickstarter and Seeders have helped fuel the way that SMEs think about business and finance.

They beauty of crowdfunding for start-up companies is that the concept bypass traditional funding streams such as grant applications or bank loans as innovation charity Nesta mentions in The FT.

Figures indicate that the value of crowdfunding expanded globally by 167 per cent to $16.2bn in 2014, up from $6.1bn raised in 2013. (The FT, February, 2016) The crowdfunding industry doubled in 2015, according to stats from a City A.M. article, crowdfunding on a global level expanded to $34.4bn.

The UK seems to be championing crowdfunding compared with other countries such as Canada due to slower adoption rates and regulatory constraints.

UK start-ups such as Brewdog are a great example, the Aberdeenshire company broke equity crowdfunding records by raising £5m in the first three weeks of its fundraising round, using its own platform — Equity for Punks. You can read more about their story here.

A Brief Insight Into French Crowdfunding (In Numbers)

French Crowdfunding

The French Crowdfunding Association (Financement Participatif France) has recently compiled some data based on crowdfunding activity during the 2014-2015 period.

In France, the slowest area of growth was in donations / rewards. The lending or debt sector experienced the most dramatic growth according to Crowdfund Insider.

The French Crowdfunding Association mention that funds collected jumped from €152 million in 2014 to €296.8 million for 2015.

Let’s take a look at French crowdfunding in numbers

  • Rewards / Donations – €50.2 million
  • Loan Based/P2P – €196.3 million
  • Equity/Royalties – €50.3 million
  • The most active age in all crowdfunding categories is 35-49
  • Average investment for an equity was €4,342
  • Hottest sector for equity crowdfunding is property

In 2014 France updated regulations on alternative forms of finance, while the rules are not perfect as Crowdfund Insider’s JD Alois puts it, on the flipside, there is a healthy eco-system in place for crowdfunding. It seems that regulations need to be addressed further as one source has mentioned that crowdfunding in France is not as clearly defined as, for example, banking. We will keep you updated about more crowdfunding news in France in future crowdfunding news blogs.

Seedrs Hits £100 Million Invested In Early-Stage And Growth

cfing

Seedrs, the UK’s No. 1 equity crowdfunding platform, recently announced that it has had more than £100 million invested on its platform in early-stage and growth focused businesses since it launched back in July 2012.

2015 was a great year for the company, not only had over a £100 million invested on the platform, it also had over 38,000 investments made on the site.

Standout funding rounds on Seedrs in 2015 included, healthy eating high street brand, Tossed, which raised £1.34 million from 661 investors, and award-winning cloud accounting software, FreeAgent, which raised £1.21 million from over 700 investors. (Mondo Visione, February, 2016)

Seedrs now has significantly more people using its site than any other UK equity crowdfunding platform.

Last month the equity crowdfunding platform was named a Bloomberg Business Innovator 2016, an award that recognises “the people changing how the UK lives, works and thinks,” as well as joining Tech City UK’s Upscale Programme of 30 of the fastest-growing UK tech companies.

Greece Baseball Team Crowdfunding To Reach European Championship

greece baseball crowdfunding

One for all you sports fans out there! Greece’s men’s national baseball team has set up a crowdfunding page in order to raise funds so they can participate in the European Baseball Championship in Hoofddorp, The Netherlands.

The Hellenic side had qualified for the tournament having finished in tenth place at the 2014 edition of the event, which was won by the Dutch team and claimed the last remaining automatic spot.

Due to the country’s economic situation, the Hellenic Amateur Baseball Federation (HABF) has been shut down by the Government, putting their hopes of competing at the tournament in jeopardy.

Without a National Federation recognised by the Confederation of European Baseball, the team would be unable to participate in the event which takes place in mid September.

Tom Mazarakis, the team manager and former HABF President Panagiotis Mitsiopoulos are due to meet with the Government soon in an attempt to have a new Federation put in place.

If a new federation is granted, the team are hoping to raise $35,000 (£25,000/€32,000) through crowdfunding to ensure that it will be able to support the team on a long-term basis.

Love baseball and interested in helping the Greek team out? Click here.

Unfortunately at The House Crowd we can’t help you crowdfund your favourite baseball team, however, we can offer you at our very own Manchester guides (North and Central) and an ideal place to watch and play baseball!

 

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