benaj
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Post by benaj on Nov 14, 2018 9:06:14 GMT
In the past few months, there are more and more platforms seeking funding via crowdfunding. Would you see this as an alternative for investment or just another flag about your p2p investment?
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Post by wiseclerk on Nov 14, 2018 10:22:56 GMT
Very true observation
Just keep in mind that investing in equity is a different asset class than investing in p2p loans
In short: + it is much more illiquid + much more long term + much higher risk (of total loss of investment)
That said it is interesting. i do just allocate a much tinier fraction of my investments into this
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ton27
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Post by ton27 on Nov 14, 2018 13:09:36 GMT
Very true observation
Just keep in mind that investing in equity is a different asset class than investing in p2p loans
In short: + it is much more illiquid + much more long term + much higher risk (of total loss of investment)
That said it is interesting. i do just allocate a much tinier fraction of my investments into this
All your points are true but there are compensating factors: Higher potential returns. Better chance of DD EIS eligible equity offers tax advantages (especially for higher rate tax payers)
I also allocate small amounts of my investment into such equity.
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bigfoot12
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Post by bigfoot12 on Nov 14, 2018 16:05:18 GMT
In the past few months, there are more and more platforms seeking funding via crowdfunding. Would you see this as an alternative for investment or just another flag about your p2p investment? I haven't invested in any. I came close with AC a few years ago and in retrospect that might have been a missed opportunity, but at the time there was too much redacted information in the 'prospectus'. Most are me too outfits with nothing new to offer and little in the way of experience. The sector as a whole isn't that great with many many competitors and many years with little in the way of profits or growth and exponentially increasing revenues with linear costs seems to be somewhat elusive. The leader is turning itself into a bank. With increasing regulation there will be increasing costs. There is increasing evidence that some of the managers are outclassed by the borrowers. Wholesale lenders are skipping out the layer and lending directly and there are many of those competing for the borrowers, often offering products to investors which are superior to P2P. Platforms are finding competitors from other experience companies such as Octopus and Downing. And that is without considering the impact of Goldman Sachs. Once Marcus starts lending some of these platforms might struggle even more. I'm not saying that there wont be a new platform raising money with a great idea (quite possible), and talented people who can execute it well (less likely), but you will spend a lot of time reading through many no hope companies, or others that are late to the show, before you find them.
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