May 27th, 2015 by: Grow VC Group

Investing in start-ups without knowing the team, is often mentioned as a problem for investors. Even though online investing has made the process of investing in start-ups easier, there is still a gap where investors cannot meet the team in person and understand the business on a more
personalized level. As a result, a lot of the angel investing is based on geographical closeness, which makes non-local investors miss out on great opportunities.

However, Equity Crowdfunding Syndicates solves this information problem and allocates capital more efficiently on the market. It is a co-investment model, diminishing risk. The system is based on three parties, the leader, backers and the start-ups. Lately online investing platforms in the US have seen a great increase in syndicate crowdfunding. In terms of the numbers of ventures raising capital, syndicates have in some cases overtaken other investment models and this trend is projected to grow.

Read the whole article on Crowd Valley Blog.

Syndicate

May 26th, 2015 by: Grow VC Group

Over the course of many years, we have been approached by many organisations looking to incorporate fintech innovation into their growth plans.

From guiding startups to government agencies, and from Latin America to South East Asia, we have documented and researched the hurdles and challenges faced, even as we see tremendous growth in fintech adoption.

Here, in the first of a series of articles, we present an overview to the 5 key stages any organisation no matter how large, the best teams consider when embarking. Whether you’re meeting your co-founders in Starbucks or sitting with executives in a board room, here’s a journey we are equipped to take.

5 steps fintech startup

Read the whole article and true life examples on Grow Advisors Blog.

May 25th, 2015 by: Grow VC Group

A report published by Accenture highlights the fast growth of Fintech in the US and Europe. According to the publication, global investments in fintech companies grew by 201% in 2014 with the biggest share going to the US and the second biggest to the UK and Ireland. Europe overall seems to have achieved the faster growth rate, as investment in the region rose from $264 million in 2013 to $623 million in 2014.

The increasing relevance of this disrupting sector could not go unnoticed by the traditional finance institutions, for which fintech plays a sort of paradoxical role: on the one side it could be a threat taking away market shares, on the other it could help banks create better, more convenient products and services for their clients.

Crowd Valley observed in its latest Digital Investing Market Report a growth in the number of banks that are exploring the opportunity to enter the peer-to-peer lending marketplace. The report from Accenture confirms the trend but also highlights some obstacles banks face in front of fintech.

If the future of fintech looks bright, how does the banks’ look like? It is up to them and their ability to live and adapt to the digital revolution.

Read the whole article on Crowd Valley Blog.

fintech

May 22nd, 2015 by: Grow VC Group

Crowd Valley has observed over the past two years a growing interest from traditional finance personnel, such as fund managers and investment advisers, towards P2P marketplaces. This trend has also been observed by finance journalists who recently reported that Wall Street is seeing an increase of investment of P2P debt by fund managers.

Two of the major P2P platforms in the US stated that in 2008 most of the loans taking place on their websites were fractional, with many lenders investing about $25 per loan. Now, recent estimates show that the trend has inverted, with approximately 65% of P2P loans financed entirely by institutional investors.

Given the outstanding growth of P2P lending, underlined by recent statistics, it is of little surprise that this new market caught the attention of Wall Street professionals too. While the sector grows and establish in the upcoming years, it is likely we will see more and more Wall Street into the P2P market.

Read the whole article on Crowd Valley Blog.

Wall Street

May 21st, 2015 by: Grow VC Group

In the beginning, your online investment community was small and most of your customers were friends and family. Back then, it was easy to verify your customers and life was easy. But then, your business grew and the number of enquiries and potential customers ballooned. You even started receiving requests for information from far away places. Congratulations.

On the surface this is a nice situation for any new business to be in. In reality this marks the start of a very important process that has far-reaching implications, including whether your business will continue to grow or fall by the side. Knowing your customers is a critical step that needs to be planned and carefully managed at every step of your growth. In many jurisdictions, getting this wrong will end up annoying regulators and possibly rest in mis-selling services to inappropriate customers.

When it comes to online investment, including equity crowdfunding and crowd investing, many market regulators require you to carry out minimum know your customer (KYC) checks.

Read some basics on Grow Advisors Blog.

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