The regulatory environment around P2P lending can be quite perplexing and can serve as a deterrent to many trying to enter the industry and launch a successful lending platform. Through this piece, we hope to clear some of the legal mist and provide clarity on the regulations that need to be adhered to.
Today Crowd Valley publishes Crowdfunding Market Report for Q3 2014, unveiling the latest trends of this fast-growing industry, as observed by the company during the last quarter.
Since the start of 2014, the international crowdfunding market kept developing fast, with new actors moving the first steps into the arena and many policymakers inserting the topic in their agendas.
As Malaysia’s framework for online investment marketplaces (equity crowd funding) is unveiled, there’s a lot of buzz around the region about the impact of new online funding models. While countries like Malaysia are looking to other countries for benchmarks, initial frameworks are still largely mirroring one another and real world applications will show how they can be applied to new regions.
“Economic Crisis”. A term we heard a lot in recent years and, unfortunately, we still hear today in Europe and in the US. Yes, because the economic crisis is still a reality in many cases, especially among small businesses, one of the backbones of western economies.
Recently, it is not rare to read about the so called “crowdfunding fatigue”, which indicates the feeling of some people, annoyed by too many requests for participating into crowdfunding campaigns. But does such a thing as crowdfunding fatigue actually exist?
Considering that a three-percent return on common bonds is seen as high, there is no reason to doubt why individual investors are flooding to seven-percent return rates provided by mini-bonds. A rapidly growing number of well-established companies in the UK that are raising growth capital are looking to the public for sources of finance, and skipping the banks. Within a matter of a few weeks, companies have been able to borrow millions, at a rate much less than that offered by banks. However, due to the nature of the mini-bonds, many questions are starting to arise with this new ‘hot’ form of ‘easy’ financing. Is the high risk worth the high return? Is the individual investor protected enough?
Crowdfunding is quickly changing the way we are investing, but unfortunately, the online payment processing industry has been rather slow to update, causing roadblocks and mistrust for investors as well as for companies seeking financing. PayPal is paving the way to embracing crowdfunding as they adjust company policies.