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24/02/2021
Sneakypeer Newsletter Week 8
Welcome back to the Sneakypeer newsletter! Below you will find industry news from last week.
Brickowner launches secondary market
Brickowner, a property investment crowdfunding platform based in the UK, has recently launched its secondary market, allowing investors to buy and sell their shares in property investments at their original price of 1 pound each. According to Brickowner, the new marketplace will elevate the liquidity of the investments originated on the platform.
According to Fred Bristol, the CEO of Brickowner, investing in property has been a challenge for many investors, as platforms often set a high minimum investment. With Brickowner, however, investing in commercial and residential property has been made more accessible, as the minimum amount is just 500 pounds. The launching of the secondary market will now allow investors to sell these investments to others, as well as invest in loans sold by other investors.
25 percent of investors plan on engaging in the alternative finance sector this year
According to a study done by bridging lender Market Financial Solutions (MFS), a quarter of investors plan on investing in the alternative finance sector throughout the upcoming year. Although a third of the 975 surveyed investors have already invested in this sector in the past twelve months, 61 percent stated that they have insufficient knowledge to continue or try investing in alternative finance.
According to Paresh Raja, the CEO of Market Financial Solutions, the ongoing pandemic has resulted in increased popularity of the alternative finance sector. Due to mainstream providers restricting their products and services to minimize potential risk exposure, investors are searching for investment opportunities elsewhere.
Debitum progressing towards licensing
Debitum Network, a Latvian alternative investment platform, applied for the investment firm’s license in Latvia in early 2020. The platform entered 2021 with a new legal entity and is currently implementing a general client questionnaire to move forward with the licensing process. From 22 February onwards, all investors will be able to access the questionnaire which will be mandatory to continue using the platform when Debitum fully obtains the license.
The platform has highlighted multiple goals of the investor questionnaire, some of which include: learning about investors’ knowledge about investing instruments and the corresponding risks, recognizing investors that must receive maximum security measures for their investments and deposits, as well as for deciding if users possess enough experience to keep investing on the platform.
