We have featured the Burrito Bond and some Kentish crowfunding before, focusing mainly on the terms offered at the buzzy modern end of finance. The implicit question has been who (on earth) is buying this stuff?
It has nagged at James Tomlins of M&G Investments as well so, in an attempt to suggest an answer, he has built a profile of the quintessential “mini-bond” investor.
Location – London – the food selection on offer (Taylor St Baristas, Chilango and Leon) is only of any practical use to someone who lives and works in London and can access the relevant branches on a regular basis. Until such time as these chains expand outside the capital, our quintessential mini bond buyer is almost certainly a Londoner.
One day we will cease to be amazed by the wonderful new world of crowdfunding, but that day has not yet arrived.
In the FT on Wednesday is a story about crowdfunding debt finance for, among others, a restaurant chain. More on that in a second, but let’s enjoy the quote from James Tomlins, a high-yield bond portfolio manager at M&G: Read more
So you like the idea of a buy-to-let property empire but don’t have the cash, time, or expertise?
Fear not, because with the liberal application of crowdsauce, you too could become a landlord with as little as £500. And you’ll get a 5 per cent annual return from day one…
Come with us to the Northeast, where the bleeding edge of crowdfunding is to be found: Read more
The UK Financial Conduct Authority has published its long awaited rules for crowdfunders and peer-to-peer lenders. You can read the full policy statement here, but lets cut straight to some frothy outrage from Barry James, founder of the Crowdfunding Center.
On a day like today one has to wonder whether our FCA is the worst regulator in the western world. The words that spring first to mind are inflexible, stubborn and unimaginative. Maybe it’s time for a change. Read more
FT Alphaville’s series on the rise of the collaborative economy has so far looked at a new type of growth, how peer-to-peer lending is a return to full-reserve banking, and the link between social networks and evolutionary game theory.
In the latter post we considered the value of reciprocity and collaboration, and whether what appears to be altruistic content generation really is self-serving after all?
But what about the rise of completely altruistic models like crowdfunding websites? Read more