Not many Fintechs dominate their sector let alone in one of the biggest markets in the world. PrimeRevenue was formed in 2003 and is the largest non-bank supplied of Supply Chain Finance in the world (working capital finance for global trade). They facilitate more than $200bn of payments per annum for 20,000 clients. In this show we dive into what it is that such a Fintech does. What can other Fintechs learn from one of the global best in Fintech?
Peter Cook who is head of all non-US sales talks us through how global trade actually works and the staggering sums of money that can be released from working capital using the appropriate techniques and how this can be win:win for vendor and buyer.
Britain needs both megabuilds but also a specialised SME property project finance market. Mike Bristow CEO of CrowdProperty a P2P based in Birmingham offers (to both sides) development finance loans and improves risk-returns by disintermediating the SME property finance market. We also debate whether P2P itself is morphing into asset securitisation for institutions (and to an extent retail funds as most folks are too busy/uninformed to second-guess experts by attempting to cherry-pick.)
Ten years ago Jeff and his co-founder came up with the idea for Equity Crowdfunding and seven years ago Seedrs became the UK’s (world’s?) first regulated Equity Crowdfunder. In this episode we revisit the origins of the concept, what it was thought to be then and how it has evolved with the person who can surely lay claim to be the father of UK equity crowdfunding.
As often everything takes time to evolve and build out. But ten years in much has been achieved – and not only much for Seedrs but importantly for the hundreds of companies who have raised vital capital on the platform. In the world of the now much forgotten “supply-side reforms” there is arguably nothing better that can be done for SmallCos than to have such an effective conduit to raising funds.
One thing that has taken time to evolve is for the rest of the world to catch-up with the UK’s lead. However as we shall hear there are promises that Equity Crowdfunding will finally become a Thing across Europe so plenty of exciting times ahead as well as behind.
Today we merge two fascinating topics – the Gold Medal for a startup – the Public Listing and innovating in Venture Capital to provide more patient capital. Our guest who connects these two is super-serial entrepreneur Tim Levene who listed Augmentum last year and is a real Fintech insider being on the Boards of Iwoca, Zopa, Seedrs, amongst others.
Tim’s career is most impressive, as we shall hear in the show – did you know he founded London’s juice bars called Crussh.
Before we turn to weaving in the Augmentum model of venture capital provided not from a limited lifetime fund but from a “permanent capital” closed-end investment trust let’s turn to listing which is something Augmentum have been through themselves
When you are a NewCo or Startup it seems inconceivable (even if you go round proclaiming the opposite) that one day you might be listed on the LSE. It can seem like starting some sport tomorrow and ending up being selected to run for your country. So there is quite some sense of achievement for the founder in doing so.
However wiser older owls realise that listing is no nirvana – ask Funding Circle who listed at 440p at the end of September and were trading seven months later at little over half this price at 250p.
There is no end to Fintechs reach – this week to the most fundamental industry in the world – Farming – easily forgotten but without which we would all die soon. 90% of the world’s commodities cannot be hedged exposing producers to huge risks. Stable are merging AgriTech with Fintech to enable producers to hedge/insure their risks.
Richard is both a Neolith and a Techolith – being Farmer and Fintech CEO and thus bridges these two worlds.
In our modern overly-financialised world they are something that most denizens of the City have much to do with. However back in the day the City was pretty much London and before shares existed the Royal Exchange which was opened in 1571 was a market for real stuff. Only later – well before the LSE – did it expand into shares.
So the origins of the City are totally in trading real things long before it traded abstract things.
Thus this week we go full circle – connecting not just one of the oldest industries in the world with the newest but also bridging over five centuries of The City’s history.
Creativity springs eternal. Here is yet another new topic, one that no one could have imagined even a couple of decades ago. Litigation crowdfunding gives litigants a new source of funding and investors a totally new investable asset with non-correlated returns. Cormac Leech CEO and co-founder of Axiafunder walks us through this complex landscape.
Litigation Crowdfunding investment is definitely not for the unsophisticated. Barristers rarely assess even the best of cases as having more than ~75% chance of success such are the vagaries of the legal process. Vice versa though, for reasons we shall come onto, investment returns are super-normal and a portfolio of well-managed litigation crowdfunding loans has the possibility of very high returns indeed.
Cormac was last on the show some three years ago, appropriately talking about innovating in P2P. Well here he is having done that big-time.
How are the changing tides and winds in newFS vs oldFS lending? How are the incumbents and newbies doing? How is the balance of institutional funding of P2P and retail going? What’s the best way to succeed? When does accepting institutional funds turn into just being a front-end for oldFS?
Landbay only do buy-to-let mortgages and since their first loan four years ago have done nearly one thousand loans with a total lent of over £200m and an astonishing 0% loss rate which is a tribute to their strict credit criteria (average LTV 70%) as well as operational efficiency.
They recently won the 2018 Best Buy-To-Let lender of the Year award ahead of Barclays, Lloyds and – well – all others 😀
They were also placed #20 in Deloitte’s Fast Tech 50
We all know that investing in the top P2P has been a good plan. But do corporate bonds offer better risk-adjusted value? Historically you had to have megabucks to buy bonds, or invest in a unit trust. However now WiseAlpha are Finteching the Corporate Bond Market and making direct investing available from as little as £100. Yields from high quality corporates can even exceed unsecured consumer debt on P2P platforms and the industry is far older and more solid.
We are joined today by CEO Rezaah Ahmad to discuss corporate bonds in the Fintech Age and WiseAlpha’s platform.
The corporate bond market is literally huge – $11.7trn and in a sense an amazing omission for Fintech so far in its mission to digitise and revolutionise the world of FS.
Using “P2P loosely there are over fifty to invest in, all with different standards and approaches. It’s a “fragmented and complex” market. Professionals do much due diligence before investing. How is an individual investor to cope? One strong contender for The Answer is “Aggregators” who do the due diligence, sign you up with said platforms and offer model portfolios
Iain Niblock co-founder and CEO joins us today to lay out the problems and challenges of investing in “P2P” which in practice covers many approaches in a diverse landscape.
Orca are also a rare example of a well-regional Fintech being based in Northern Ireland with an office in Edinburgh.
TransferGo‘s slogan is “Send money around the world. Fast. For just 99p” which is a super-cheap flat fee. In terms of price they deal at a variable 2+% to flat 0.45% (above £1000) on top of the mid-market rates with a known price when you deal. They also transfer in under 30 minutes and have a 96% 5* rating on Trustpilot which is the best in their sector.
However today we focus on the transaction fee. How can they charge so little? Is there some way the transaction fee can trend to zero whilst keeping a constant spread to mid-market rates?
How do Fintech FX’s actually do transactions way cheaper than banks when, after all, all money is held in bank accounts?
As we have heard many times before it is not – contrary to some spin/PR prevalent in the market – by doing “P2P FX”. So how is it done?