A two part article that investigates how P2P Lending and Investment-Based Crowdfunding make it possible to earn a better return by cutting out the middleman.
‘Other Investment Options’
SyndicateRoom requires that all of the companies using its platform must raise at least 25% of their capital from a professional arms-length investor. Smaller investors get exactly the same terms and this has helped them to raise around £12 million in their first year to help finance 22 different businesses.
Goncalo de Vasconcelos, their co-founder and CEO, says successful companies tend to take between three to seven years to achieve an exit. ‘I am very comfortable that some of our companies will eventually earn investors a return that will be many times their investment. This is, of course, yet to be proven but our investor-led model is the only one that allows online investors to make more informed investments alongside professional business angels and venture capitalists.’
You can read more here, as long as you are a subscriber to Shares Magazine: http://www.sharesmagazine.co.uk/articles/power-to-the-people