Pavel Kohout, Symfonie Capital, LLC - finance-edu.cz · P2P and Crowdfundng – the Revolution in Finance Pavel Kohout, Symfonie Capital, LLC London: 16 High Holborn, London WC1V
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P2P and Crowdfundng – the Revolution in Finance
Pavel Kohout, Symfonie Capital, LLC
London: 16 High Holborn, London WC1V 6BX l Prague: Klimentska 1216 / 46, 110 00
Designing the right contractual structure is critical to success for a P2P lending
platform.
Equity Crowd Funding Models
Marketplace and matching
(Angellist, Gust, Matchboard)
Brokerage / Intermediation
(Seedrs, Crowdcube, Equitynet)
Managed investing
(Symfonie and other angel funds)
Banking and Regulation Regimes
• Social funding, rewards, sales can fall within payments processing directive. Most of these sites use licensed credit card companies to process the transactions.
• Lending sites – in some countries only banks can be in business as lenders, so P2P companies, in other countries (e.g. UK, Poland, Czech, Slovakia any company can be in the lending business. In the US lending sites face banking regulations as well as securities regulations. Nowhere in Europe is P2P investing classified in securities regimes. It usually is sale and purchase of receivables or is payment processing, depending on contractual structure.
• Equity sites – usually regulations apply to sale of private securities. The US and UK have specifically allowed crowdfunding for small companies and startups.
• Every site must determine a business model
that fits into the legal and regulatory scheme in
the country where it is domicled.
• The internet breaks down national borders,
since any citizen of any country can
The Road Ahead
• The industry is vulnerable to changes in regulation
• P2P lending continues to move into the main stream for borrower and investors
• Crowd equity funding is untested – we don’t know what returns (%) investors will receive on average
• For investors will “Diversify by making many small sized investments” translate into “make the same small mistake lots of times”?
• Startups fail far more often than they succeed. Will crowdfunded startup be more successful?
• At some point many investors will lose a lot of money due to some fraud or poor corporate governance. How will the industry and regulators respond and how will investor behavior change?
•
Symfonie P2P and Crowdfunding Approach
• SymCredit – P2P lending platform founded by Symfonie to make P2P loans
starting in Czech Republic and Poland.
• SymVest – allows investors to co-invest with the Symfonie Angel found in startup
and early stage companies. Most crowd funding models are brokerage models.
SymVest is an investment management model, which should give investors
greater confidence in the investments they make.
Appendix
London: 16 High Holborn, London WC1V 6BX l Prague: Klimentska 1216 / 46, 110 00
• This document has been prepared by Symfonie Capital Investment Management LLC (“Symfonie Capital”) for persons reasonably believed by Symfonie Capital to be persons of the categories to whom Symfonie Capital are permitted to communicate financial promotions. This document does not constitute or form part of any offer or invitation to sell, or the solicitation of an offer to subscribe or purchase any investment. Symfonie Capital believes that the information it provides is accurate as at the date of publication, but no warranty of its accuracy or completeness is given and no liability in respect of errors or omissions is accepted by Symfonie Capital or any partner or employee of Symfonie Capital. Past performance is not necessarily a guide to future performance.
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