Feb 25th 2016 News Digest Lending Times

UK Fintech VC numbers for 2015.
An example of challenger (=entrepreneurial) banks’s strategy.
Claims that p2p will have no impact on the mortgage space.
P2PGI key numbers: £800m, 6%-8% dividend yield, 180,000 loans from 16 platforms.
OnDeck stock takes down LC stock as well.
Numbers on UK p2p market growth.


Feb 25th 2016
Title Description Interest level Publication
VC Investment in UK FinTech soared in 2015 by 35% to $901 million The UK attracted the highest volume of VC deals outside the US and third in terms of total investment behind US and China. Two of the world’s biggest VC deals from the UK: Atom Bank ($125 million) and Funding Circle ($150 million) There were 860 VC deals globally, attracting $12.5 billion in investment AAA Medium
UK fintech VC investment booms to almost $1bn There were 72 deals in total, with the large funding rounds from Funding Circle, Transferwise, WorldRemit, eToro, RateSetter, Azimo, The Currency Cloud, MoneyFarm, and Seedrs helping drive up the total. AAA Computer Business Review
Crowdfunding for homes? Residential investment for as little as £50? Sounds incredible. We meet Property Partner's Dan Gandesha Since launch a year ago (January 2015), we have crowdfunded 150 properties with a total of more than £22.6m invested on the platform. £4.1m has been invested in our unique secondary market, which allows investors to trade their property shares with other investors, and exit the market at a time and price of their choosing. Our aim is to increase the number of listed properties tenfold over the next 12 months across the UK, with ambitions to expand internationally thereafter. Ultimately, we plan to build a global property stock exchange. A London Loves Business
Recruitment In The P2P Lending Era “The ideal candidates will have had prior P2P or Marketplace lending experience overseas, but they are rare and can often be hard to bring into Australia due to visa restrictions. They also take time to move etc. But the Aussie returners from the UK are a great pool to tap into with our partner in London, Ecom Recruitment, and that’s proven to be a good solution. At S2M we’re looking for candidates who have innovation in their blood, that are driven by being entrepreneurial and want to make significant change.” A Alt Fi News
How challenger banks and P2P lenders can work together – Harriet Green asks OakNorth’s Rishi Khosla Challenger banks ( entrepreneurial banks ) like OakNorth, which launched last year, exist. Sitting in a similar space to P2P lenders in terms of loan size, co-founder Rishi Khosla tells : “we really want to be known as the ‘entrepreneurs’ bank’”. After obtaining a banking licence, the serial entrepreneur immediately set about building a relationship between the bank and P2P platform Crowd2Fund. “It’s logical for banks and P2P platforms to co-exist, and co-operate. Often, the risk profile platforms need to go to doesn’t match the kind of investors they’re working with, but we can help mitigate some of that risk,” AAA CITY A.M.
P2P lending no threat to mortgages Peer-to-peer (P2P) lending will have “virtually no impact” on the mortgage space, according to an industry leader. AAA Investment week
Budget 2016: Tax breaks for P2P startups can boost SME funding Aspects like exemption from inspectors, one day registration process, and income tax exemption for a period of three years can be very helpful for the startup ecosystem. AAA The Financial Express
P2P trusts: 'We only invest in loans we know will stand up to 2008 market conditions' Less than 18 months after launch, P2P Global Investments (P2PGI), the first peer-to-peer lending investment trust, was already one of the biggest trusts on the London Stock Exchange, having raised over £800m through several fundraisings. The trust targets an annual 6%-8% dividend yield by investing in over 180,000 loans from 16 carefully selected platforms from a global base of more than 200. AAA Investment Week
Goji CEO Says FCA & HMRC Must Align on Innovative Finance ISA There is a nuanced, but potentially substantial, disconnect in the understanding between how the FCA and HMRC. B Crowdfund Insider
India Brief: LoanZen Nabs Seed Funding from Angel Network Tracxn Syndicate Yesterday news about Loan Zen raising money from Tracxn angel network. B Crowdfund Insider
P2P Lender Wellesley & Co. Appoints New Group Chief Risk Officer Yesterday news about new appointment as risk officer. B Crowdfund Insider
Lending Tree Raises 2016 Outlook; Expands Share Repurchase Program For fiscal 2016, Lending Tree now forecasts revenue in a range of $370 million to $380 million, or up 46 to 49 percent over full-year 2015, and an increase from prior guidance range of $315 million to $320 million. They announced a $40mil share buyback. A Nasdaq
ThinCats accepts skinny rates in marketplace sector ThinCats Australia, a marketplace lender, told prospective investors in a presentation his week that it was advancing business loans at "rates between 11 per cent to 16 per cent per annum." These lending rates are much less than those of some rivals in the presentation, including OnDeck (USA), Prospa, Get Capital and Moula. A Banking Day
LendingClub Growth Might Not Be What You Thought, Sterne Agee CRT Analyst Warns Sterne Agee CRT's Henry J. Coffey downgraded the rating on LendingClub Corp LC 0.47% from Buy to Neutral, while reducing the price target from $10 to $8. B Benzinga
Lending Club not spared by OnDeck's weak outlook Acknowledging 2016 guidance was weak, OnDeck Capital (ONDK -7.5%) bull Canaccord Genuity says management is focused on 1) controlling marketing spend; 2) slightly lower gain on sale as investors price in higher defaults; 3) increased tech spend to support major partnerships.Sticking with its Buy rating, Canaccord does cut the price target to $12 from $18.Lending Club (LC -5.3%) has fallen in sympathy, and now sits with a two-day loss of about 10%.Glass half full? With investors souring on online lending, IPOs from competitors like LoanDepot and Elevate Credit have both been pulled over the past few months. AAA Seeking Alpha
The growth of UK peer-to-peer lending & crowdfunding: a good news story The market grew to £3.2 billion; 1.09 million people invested, donated or lent via online alternative finance (AF) platforms in the UK; 254,721 individuals, projects, not-for-profits and businesses raised finance via online AF platforms; Online AF platforms took 12% of the small businesses lending market, and 15.6% of the UK seed and venture-stage equity investments market; 45% of AF platforms reported some institutional lending; and 32% of P2P consumer loans, and 26% of all P2P business loans, were funded by institutions. In fact, in 2015: 20,000 SMEs borrowed £1.82 billion using AF platforms – the equivalent of 3.4% of gross national bank SME lending in 2014, and 13.9% of new bank lending to small businesses in 2015; and Equity based crowdfunding contributed £245 million of venture financing, the equivalent of 15.5% of total UK seed and venture stage equity investment. AAA Lexology


Author : George Popescu

About the author

George Popescu

Serial entrepreneur.

George sold and exited his most successful company, Boston Technologies (BT) group, in 2014. BT was a technology, market maker, high-frequency trading and inter-broker broker-dealer in the FX Spot, precious metals and CFDs space company. George was the Founder and CEO and he boot-strapped from $0 to a $20+ million in revenue without any equity investment. BT has been #1 fastest growing company in Boston in 2011 according to the Boston Business Journal and the only company being in top 10 fastest in 2012-13 as it was #5 in 2012. BT has been on the Inc. 500/5000 list of fastest growing companies in the US for 4 years in a row ( #143, #373, #897 and #1270). After the company sale in July 2014 until February 2015 George was Head-of-Strategy for Currency Mountain ( ), a USD 100 million+ holding company focused on retail and medium institutional currencies, precious metals, stocks, fixed income and commodities businesses.

• Over the last 10 years, George founded 10 companies in online lending, craft beer brewery, exotic sports car rental space, hedge funds, peer-reviewed scientific journal ( Journal of Cellular and Molecular medicine…) and more. George advised 30+ early stage start-ups in different fields. George was also a mentor at MIT’s Venture Mentoring Services and Techstar Fintech in NY.

• Previously George obtained 3 Master's Degrees: a Master's of Science from MIT working on 3D printing, a Master’s in Electrical Engineering and Computer Science from Supelec, France and a Master's in Nanosciences from Paris XI University. Previously he worked as a visiting scientist at MIT in Bio-engineering for 2 years. George had 3 undergrad majors: Maths, Physics and Chemistry. His scientific career led to about 10 publications and patents.

• On the business side, Boston Business Journal has named me in the top 40 under 40 in 2012 in recognition of his business achievements.

• George is originally from Romania and grew up in Paris, France.

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