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The best source for news and information about crowdfunding for good.

Crowdfunding for Social Good

Devin D. Thorpe

Devin Thorpe

Platforms

News about crowdfunding platforms.

Reality Crowd TV Launches Virtual Incubator and Crowdfunding Network Platform for Entrepreneurs

Reality Crowd TV has created an entrepreneurial ecosystem designed for early stage start-ups to go from inception to successful funding in 6 months or less.

Hartford, CT (PRWEB) February 25, 2015 – The crowdfunding industry has been frequently highlighted in the media over the last few years because of the high profile projects that have been funded. The crowdfunding industry has been growing at a brisk pace with impressive revenue growth for the last three years. This growth has given birth to many new crowdfunding platforms and services which are now being offered in this rapidly evolving space.

One company that is leading the charge in this new revolution is Reality Crowd TV (RCTV). RCTV is an entrepreneurial focused firm that promotes the booming crowdfunding industry. The Company’s main focus will be to demonstrate how aspiring entrepreneurs can transform their kitchen table ideas in everywhere, USA, into the boardroom of tomorrow by using the crowdfunding model. RCTV teaches people that crowdfunding is not only an effective funding mechanism but a powerful marketing vehicle that can create a valuable customer base before a concept even comes to market and prove validation for an idea right from its inception.

The company’s new virtual incubator is a Quora (quora.com) like platform designed for its users to draw upon the collective knowledge of the incubator members to help entrepreneurs learn all the nuances of launching a start-up company. The platform is set up like a social media site with all the functions needed to effectively communicate with all groups and members. The Platform launched earlier this month with over 500 members and growing every day.

Founded in December of 2013, Reality Crowd TV engaged in a nationwide tour across the United States which included stops to Connecticut, New York, Boston, Washington D.C., Atlanta, Jacksonville, Austin, Houston, Denver, and Seattle in an effort to promote the nascent crowdfunding ecosystem and the many participants in it. Many of these stops were captured on video and can be found on the company YouTube channel.

Upon returning back to Connecticut in April 2014, the company had its first major breakthrough by adding a crowdfunding & digital media consultancy practice as part of the package to help entrepreneurs and their startups raise capital. Since April, the company has consulted 10 successful crowdfunding campaigns in varying capacities raising an aggregate of $825,000. Details of these successes can be seen in the Connecticut Innovation Summit Pitch Presentation.

The company has several more new projects in the works to be rolled out later this year, including their Reality Crowd TV Virtual Crowdfunding Summit to be hosted in November and December 2015. Many of the leading minds in crowdfunding and business are scheduled to speak at the summit later this year.

New Revenue Stream For Crowdfunding Professionals

Krowdster launches affiliate program for crowdfunding consultants and publishers to cash in on explosive growth

Krowdster, the world’s first crowdfunding analytics, research and supporter discovery tool has launched a new affiliate program for crowdfunding consultants and publishers.

The affiliate program capitalizes on Krowdster’s explosive growth; since opening for business nine weeks ago, the unique Krowdster web app has racked up more than 2000 active users. App users have access to a range of cloud based tools, helping them to harness the power of big data to improve their crowdfunding campaigns. Krowdster connects crowdfunders with over 350,000 crowdfunding campaign supporters on social media, with 2500 new backers added each day across Twitter, Facebook, Google+ and Tumblr.

Tapping into this network of entrepreneurs, investors and crowdfunding influencers, the new Krowdster affiliate program offers consultants and publishers an industry-leading 30% lifetime commission for referred sales. Krowdster founder Josef Holm said, “This is a great way monetize leads that can otherwise not be monetized”. It’s simple to join, with new affiliates able to get self-started immediately, and then weekly pay outs made for referred memberships.”

The Krowdster affiliate program is open to affiliates in any country with a PayPal account. When a user referred by an affiliate opens a membership account with Krowdster, the referring party earns 30% of the membership fee for the lifetime of that user account. The program is backed by a powerful tracking and reporting system, giving control and insight for those using affiliate marketing as a main or secondary source of income.

Affiliates have the ability to generate unlimited linking codes and then track success through a range of traffic sources. Traffic can be sent to a high converting homepage or optimized landing page with Krowdster providing expert support to help affiliates maximise their income from the program.

Easy to use, affordable and securely cloud-based, Krowdster makes it easy to plan and run a successful crowdfunding campaign, without being a big data guru. The power of Krowdster gives anyone with a budding project immediate access to professional crowdfunding research, optimization tips and supporter list building. It supports every major platform including Kickstarter, Indiegogo, Tubestart, Rockethub and Pozible with benchmark set ups and useful metrics such as campaign volume, funding ranges and success rates.

Krowdster also allows would-be crowdfunders to predict the success of their campaign before a single pledge has been made by leveraging insights from more than 500,000 past projects. Using the Krowdster web app, campaign owners can maximize their chances of success with big data analytics powered guidance across every aspect of their campaign. From uncovering the platform with the most favorable success rates in specific categories to pinpointing average funding achievements, Krowdster makes crowd funding effortless.

To become an affiliate, visit https://www.krowdster.co/affiliates

New Crowdfunding Platform Using Shoes as Currency

New website allows user to raise funds with shoes instead of credit cards

Orlando, Fla.(February 4, 2015) – Funds2Orgs, a for-profit social enterprise, is reinventing crowdfunding with the launch of “Shoe Funding.” On Funds2Orgs’s new website www.shoefunding.com entrepreneurs and others hoping to raise funds for a special endeavor can earn money by collecting new and gently used shoes.

Here’s how it works: Groups and individuals run national campaigns asking supporters to pledge a certain number of pairs of shoes to donate. These shoes can be dropped off at a local collection center or a mailing label can be printed. Once the shoes are collected, Funds2Orgs pays the fundraiser for each donated pair.

Funds2Orgs has been organizing shoe drives to support micro enterprises in developing countries since its inception in 2013, but this new web-based crowdfunding platform enables users to collect shoes across the U.S., as opposed to just in their own city. Local “ShoeFunding” campaigns have already raised more than $1 million for schools, charities and religious groups in a little over a year.

“In the past, those hoping to raise money needed to ask others to dig into their wallets for support, but now they can simply dig into their closet,” said Funds2Orgs founder and CEO Wayne Elsey. “Not everyone has money to spare, but most have at least one pair of shoes they can part with.”

Campaigns are managed on www.shoefunding.com. Participants create customized fundraiser webpages to include information on their fundraising mission, goals and to share images, videos and progress with their followers.

Ideal “ShoeFunding” drives might include:

  • Schools, churches and nonprofits funding new programs, mission trips, class trips, equipment or facilities
  • Entrepreneurs looking for seed capital to fund a new business, microenterprise,invention or endeavor
  • Individuals looking to support people in need or special causes

Take Heather Beam, a mother who utilized the Funds2Orgs shoe drive program to help fund the costly process of adopting a child from the Philippines. In six months, Heather collected $2,500 towards adopting 14-year-old Christine, who will be joining the Beam family in May.

The good news is, once the donated shoes are received, Funds2Orgs will then sell them for a nominal fee to budding entrepreneurs in developing nations, such as Haiti and Guatemala, to resell for their own micro enterprises.

Visit http://funds2orgs.com.

Silicon Valley CrowdFunding Conference to be Held on March 5-6

CrowdFundBeat Media is pleased to announce its Third Annual CrowdFunding Conference, to be held 5-6 March 2015 at the Computer History Museum in Mountain View, California. This year’s conference theme shall be Alternative Finance, which will entail keynote addresses and panel discussions on topics such as Peer-2-Peer Lending, Real Estate and Corporate Crowdfinancing, new forms of Perquisite Crowdfunding, and developments on the international front. As in past conferences, CFB Media is bringing together executives, thought leaders and pundits within and about the industry to provide attendees unique insights, current growth rates, and prognostications as to where this industry is headed. Now nearly six years old, much has taken place within the space, with business models being both successful as well as needing adjustment, which we will hear directly from those that are making the necessary moves.

There will also be discussions on the legal elements of the industry, with plenary sessions on the JOBS Act, intrastate crowdfunding initiatives, and the status of Regulation A+ offerings. Further, additional sessions will be devoted to “Who is the Crowd”, and the inclusion of institutional investors and the self-directed IRA community.

Registration is limited to 300 attendees.

CrowdfundBeat would like to extend its thanks to the 2015 sponsors of Alternative Finance, including Ellenoff Grossman & Schole LLP, PENSCO Trust Company, Manatt Phelps Phillips, Patch of Land, Bancbox, Our Crowd, Leverage PR, FundHub, CrowdValley, PRIMARQ, DiversyFund, CrowdFunder, Realty Mogul, Digital Film Crowd Network, AIMkts, IRA Services and AppsFunder.

About CrowdFundBeat Media

CrowdfundBeat Media is the leading media company covering the crowdfund industy, publishing its daily webzine across the globe. With editions in the USA, Canada, United Kingdom, Italy, Germany, France and Holland, its reach enjoys approximately 100,000 of monthly visitors. In addition, its video library of over 1,000 clips provides crisp insights from global crowdfunding thought leaders. Lastly, CrowdfundBeat produces a series of conferences through the year, including the upcoming and exclusive CrowdCaucus in Washington, DC, in May 2015.

Safeway Contributes over $300 Million to eScrip Partner Schools

SAN MATEO, CA — February 3, 2015Safeway Inc. (NYSE: SWY) and eScrip, the premier year-round national fundraising program especially for schools, today announced that Safeway has contributed over $300 million to the eScrip program since it began in 1999.

The eScrip fundraising model is a proven and powerful program that allows thousands of partner merchants, like Safeway, to contribute a percentage of a participating customer’s purchases back into education – and is free to participating schools.

“We applaud Safeway for all they have done and continue to do through the eScrip program — they are an outstanding community partner example, said Ian Diery, CEO of ESI. “eScrip allows parents to designate who receives the percentage of sales from their purchases – the choices parents make on where and how they shop can make a huge difference to their school.”

Safeway has made extraordinarily generous contributions to the local communities they serve, and are committed to giving $18 million in annual support, making a huge difference in children’s education. The eScrip program is a fundraising program that allows Safeway customers to register their Safeway Club Card with eScrip so that a percentage of their qualifying purchases are contributed to their child’s school or group.

Safeway’s contributions help fund critical programs at schools and provide supplies to help students succeed. Together with eScrip, Safeway is making a difference, one school at a time.

ABOUT ESCRIP

Headquartered in San Mateo, CA, eScrip is a subsidiary of Electronic Scrip Incorporated (ESI). eScrip is the longest running, most successful shop-to-fundraise program in the United States. With the introduction of eScrip, ESI pioneered a new phase of cause-related marketing and remains the committed leader in the market. eScrip is dedicated to establishing relationships between commerce and community by providing resources to organizations that support children. To date, with participation from millions of families and over 45,000 schools, the eScrip program has generated more than $420 million in merchant contributions to schools across the country. For more information, visit www.escrip.com; to visit the shopping site, go to https://shopping.escrip.com/.

ABOUT Safeway

Safeway Inc., which operates Safeway, Vons, Pavilions, Randalls, Tom Thumb, and Carrs stores, is a Fortune 100 company and one of the largest food and drug retailers in the United States with sales of $36.1 billion in 2013. The company operates 1,331 stores in 20 states and the District of Columbia, 13 distribution centers, 19 manufacturing plants, and employs approximately 138,000 employees. The company’s common stock is traded on the New York Stock Exchange under the symbol SWY. For more information, please visit www.Safeway.com.

ABOUT The Safeway Foundation

Founded in 2001, The Safeway Foundation supports causes that impact our customers’ lives. Safeway stores provide the opportunity to mobilize funding and create awareness in our neighborhoods through the generous contributions by our customers, our employees’ passion and partnerships with our vendors. We focus on giving locally in the areas of health and human services, hunger relief, education and helping people with disabilities. Safeway Inc. and The Safeway Foundation have invested $1 billion in our neighborhoods since 2001. For more information about The Safeway Foundation, visit www.safewayfoundation.org.

Opportunity Hub Partners With Kingonomics & Digit To Launch #WealthMonth

Over 50 Free Events Open To The Public

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Atlanta, Georgia – February 1, 2015 – Historically known as Black History Month throughout America, Opportunity Hub has partnered with Kingonomics and Digit to launch #WealthMonth in an effort to address our nation’s poverty and wealth gap with innovation, entrepreneurship and access to capital being presented as the solution.

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Throughout the month of February, Opportunity Hub (OHUB) will be hosting the “Wealth Month” event series inspired by Rodney Sampson’s best selling book, KINGONOMICS: Twelve Innovative Currencies for Transforming Your Business & Life, Inspired by Dr. Martin Luther King, Jr. The Wealth Month series focuses on educating its participants on definitive solutions to close the wealth gap in America by saving money, starting and scaling growth oriented businesses and learning how to invest via tools such as crowdfunding and angel investing. As the nation’s largest minority owned multi-campus coworking space, entrepreneurship school and incubator, Opportunity Hub invites existing and aspiring innovators, entrepreneurs and investors to participate in over 50 educational based events designed specifically for Wealth Month.

unnamedDuring February, #WealthMonth’s lead sponsor, Digit, a silicon valley venture backed financial technology company that helps people automatically and intelligently save money without thinking about it, will contribute five ($5) dollars for every new user that signs up for the free service. OHUB will use the monies to grow its seed investment fund and code school scholarships designed to engage more underrepresented minority (URM) communities in tech and startup culture. Digit’s service is free and easy to use. Campaign supporters can try out the service here, https://digit.co/r/ohub

Featured programming includes over 30 introductory daily classes at OHUB’s campuses, including a legislative hearing on Georgia’s Angel Investor Tax Credit under The Gold Dome, a 1-day Accelerator with TiE, 2 Hackathons, FinTech Forum & Pitch Day with Village Capital, SXSW Meetup, and the 1st SBA HBCU Millennial Trep Day. OHUB Mentors In Residence are committed and dedicated to closing the wealth gap by presenting innovating tools for saving money, teaching everyday citizens to start and scale growth oriented businesses and creating a pipeline of small, large and institutional investors and stakeholders.

unnamed (1)The highlighted event of the month is the Ten Thousand Innovators, Entrepreneurs and Investors Conference & Expo taking place on Saturday, February 21 and Sunday, February 22 at New Birth Church in Lithonia, Georgia. The projected live-in-person attendance is 10,000. The global live streaming attendance could exceed 20,000.

All of Opportunity Hub and Kingonomics’ events in February are free and open to the public. Early registration is advised as most events and classes will fill up fast. Register for all events at www.wealthmonth.com or see the events calendar at www.opportunityhub.co/events.

Deal Makers Comment On Crowdfunding Platform Acquisition

This post was originally produced for Forbes.

Last month, impact investing and crowdfunding platform Gate Global Impact was acquired by Investview, Inc. Vince Molinari, CEO of Gate Global Impact and Dr. Joseph Louro, CEO of Investview, will be joining me for a live discussion about the deal and its impact. Note that Gate Global Impact sponsored the Social Enterprise and Crowdfunding Conference, which I organized in September of 2014.

In a statement describing the transaction, Louro said, “There are three significant components of this monumental acquisition, first is the impact of the GATEWAY technology platform which provides in the electronic investing regulatory compliant marketplace. Secondarily the leadership of Vincent Molinari and Joseph Latona Jr. as demonstrated from congressional testimony on the Jobs act to developing technology which I believe is the ultimate compromise in the democratization of public and private capital formation by bringing all investor types from crowdfunding to accredited to institutional to governmental with a leading compliance infrastructure that offers investor protections and access to quality deal flow all meeting under one tree. Additionally this is evident by the incredible partnerships the GATEWAY platform has in their respective spaces such as The United Nations Global Compact, and being selected and an OPIC EDN originator.”

On Thursday, January 29, 2015 at 5:00 Eastern, Louro and Molinari will join me for a live discussion about the transaction and the combined business’s future plans.

More about Gate Global Impact:

GGI, Inc is a wholly owned subsidiary of Investview Inc that will operate the GATEWAY 2.0 electronic marketplace. GATEWAY is an impact investing-focused electronic regulatory compliant marketplace that provides market infrastructure and related services for the emerging Impact Investment industry public and private investments with a sustainable social and/or environmental component. Please visit www.gateglobalimpact.com

More about Investview, Inc.:

Investview, Inc. is a diversified Financial Services Company which includes a Registered Investment Advisory Firm and intends to utilize the Firm’s technology to generate recurring fees and commissions from potential Investview customers. Traditionally, Investview provides and delivers a comprehensive online program of investor education, offers proprietary investor search tools and trading indicators, distributes weekly newsletters and offers access to live weekly Trading Rooms Investview is continuing to emerge as a Financial Services Company seeking diversification of revenue. For more information on any of the Investview products, please visit: www.investview.com.

Dr. Joseph Louro

Dr. Joseph Louro

Louro’s bio:

Dr. Louro is a successful businessman who possesses the skills and capabilities to guide Investview through its development stage and prepare the company for growth. He has successfully operated companies in multiple business sectors and has been involved in educating through lecturing in the education space domestically and internationally.

Dr. Louro, from 2006 to 2011, served as the CEO and President of LDG-Louro Development Group, a business development company focused on real estate transactions, new construction and downtown development projects as well as foreclosure-bankruptcy turnaround solutions.

From 1981 to 2006, Dr. Louro acted as an international speaker for live seminar educational companies. Dr. Louro’s topics for physicians and businessmen included success principles, practice management skills and leadership skills. Dr. Louro also taught staff and employees how to enhance the customers overall experience through first class service.

Dr. Louro was licensed by the State of New Jersey in 1981 by the Board of Medical Examiners to practice as a Chiropractor and, has since demonstrated the ability to run multiple offices with an integrated staff of chiropractic, medical and osteopathic physicians while also teaching and consulting.

Vince Molinari

Vince Molinari

Molinari’s bio:

As founder and chief executive officer of GATE Technologies, Mr. Molinari has been the driving force behind GATE’s mission to create new market infrastructure that brings transparency, efficiency, and liquidity to the unstructured global alternative asset markets. He is responsible for GATE’s strategic planning and business initiatives, including corporate alliances and strategic partnerships. His vision is based on a core belief that “actionable knowledge” drives investments, and that technology can close the gap between traditional and emerging alternative markets. Vincent believes opening the private market for investment can spearhead economic growth and job creation. The company’s initiatives in Impact Investing reflect Vincent’s commitment to bringing positive change through financial innovation.

Vincent is also the founder of Global Access Holdings LLC, a financial media and analytics company, which identified a global trend line of illiquid securities and the potential market need for alternative asset trading platforms. Prior to Global Access Holdings, he was chairman & CEO of Burlington Capital Markets LLC, a financial services company specializing in institutional execution services and investment banking activities. In addition, he co-founded Inculab, a technology business incubator. Vincent began his career at Lehman Brothers Inc., and has also held senior positions at Janney Montgomery Scott Inc., and Ridgewood Capital Funding, LLC.

Vincent is a Founding Board Member and Co Chairman of the Crowdfund Intermediary Regulatory Advocates (CFIRA) which was established by the crowdfunding industry’s leading platforms and experts to work with the Securities & Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and other affected governmental and quasi-governmental entities on establishing industry standards and best practices. He is also a Co-Founder and Executive Committee Board Member of the Crowdfunding Professional Association (CfPA), a leading trade organization for the Crowdfund industry. Vincent was named as one of the Top 10 Most Influential People in Business Crowdfunding in Forbes.

Small Business Marketplace Lending Platform Bolstr Raises $1.7m in VC Funding

Deal upsized to $1.7 million from Montage Ventures, Kapor Capital, DRW Trading Group among others.

CHICAGO, Jan. 29, 2015 /PRNewswire/ — Bolstr, a marketplace where emerging consumer, retail and manufacturing businesses can access growth capital from accredited investors, has raised $1.65 million in series seed funding, an amount that was recently upsized from the original $1.5 million target. Backers include Montage Ventures, Kapor Capital, DRW Trading Group, Merrick Ventures, and Wilson, Sonsini, Goodrich & Rosati.

Led by former investment bankers, Charlie Tribbett and Larry Baker, Bolstr aims to help emerging small businesses access capital from a pool of accredited investors utilizing an innovative revenue share structure. Through the platform, business owners are able to quickly raise capital to fuel growth while maintaining 100% equity ownership. Each monthly payment back to investors is sized by a set percentage of gross sales, providing investors with liquidity early and often. Businesses also benefit from flexibility in the repayment structure, since each payment is proportional to their gross sales volume.

Payments are made until investors make a set return back on their investment, so the time frame of each loan is variable, and there are no prepayment penalties. This provides protection for seasonal businesses that are investing in growth initiatives. This also provides investors with return upside as a business grows revenue, and repays investors back sooner than anticipated.

“Marketplace lending is a $1 trillion market (LendingClub, OnDeck Capital etc.), and specifically, the landscape for small business funding is quickly shifting away from traditional banks and more so to platforms like Bolstr,” said Charlie Tribbett, Co-Founder of Bolstr.

“Bolstr leverages technology and data science to approve and fund businesses up to $500,000 rapidly, with flexible deal terms, while giving accredited investors first time access to private, liquid investment opportunities,” adds Larry Baker, Co-Founder of Bolstr.

What makes investing on Bolstr attractive is their proprietary underwriting process, designed to efficiently and effectively evaluate and understand credit risk for each business. Metrics analyzed include traditional factors such as liquidity ratios and credit scores but also incorporates metrics such as Yelp ratings and reviews on social media.

Bolstr estimates that there are roughly 8 million potential accredited investors in the US who have yet to make private business investments due to lack of access to emerging opportunities, and a lack of understanding of the potential risk. To appeal to these accredited investors, who must verify with Bolstr before investing, each business on the platform goes through a detailed underwriting evaluation. This model allows investors to gain first-time access to private, liquid investment opportunities with higher returns than managed funds or traditional fixed income opportunities.

Thus far every business that has raised funding on Bolstr has reached its target within five days, there have been zero defaults, and 64% of the investors within any given deal have been new investors. Bolstr makes money by charging a flat fee to every business that is approved to list on the platform, and does not take transaction-based compensation.

About Bolstr

Based in Chicago and founded in 2011 by former investment bankers Charlie Tribbett and Larry Baker, Bolstr is a marketplace where emerging consumer, retail and manufacturing businesses can access growth capital from accredited investors. Every raise on Bolstr uses an innovative revenue share investment structure, where businesses can access $25,000 – $500,000 to invest in growth, retain 100% of their equity, and make flexible monthly payouts to investors, since they are sized proportionally to their revenue. Investors then receive revenue-based payouts until they make a multiple back on their investment. For more information, please visit bolstr.com, Facebook or Twitter or watch How it Works.

Funding Circle Launches Fractional Loan Marketplace So More Americans Can Invest In Successful Main St. Small Businesses

– Funding Circle now the only major P2P lender in the U.S. to offer qualified individual investors access to secured small business term loans, a traditionally hard-to-reach asset class –

Funding Circle, the global small business loan marketplace, has become the first and only major peer-to-peer lender in the U.S. to offer individual investors the opportunity to invest in secured small business loans with the launch of its new Fractional Loan Marketplace.

Through its affiliated broker-dealer, Funding Circle Securities, investors can now buy fractional pieces of secured small business loans ranging in size from $25,000 to $500,000 and in term from one to five years, with coupon rates of 5.99-20.99%.

Funding Circle co-founder and U.S. managing director Sam Hodges said the new marketplace opens the traditionally hard-to-reach asset class to more individual investors who can now build diversified portfolios with smaller amounts of capital by investing in portions of loans instead of whole loans.

“We’re excited to be the first major P2P lender in the U.S. to offer qualified individual investors unique access to a curated selection of true small business term loans underwritten by our seasoned credit professionals using robust data analytics,” he said. Our borrowers are high-quality businesses left behind by banks due to industry inefficiencies, tighter lending regulations and archaic underwriting models. These are established businesses that have assets and cash flow to secure loans, plus a legitimate plan for growth.”

Since Funding Circle was founded in 2010, 35,000 investors have lent more than $800 million to 7,000 small businesses globally.

“There is tremendous demand in the market for fast and affordable small business loans; we’re about to cross $1 billion in originations globally,” said Hodges. “With the launch of our Fractional Loan Marketplace, we expect it will be another good year to tap into investors seeking yield in a low rate environment and bring more capital into this attractive asset class.”

Investors can access Funding Circle’s Fractional Loan Marketplace with a minimum opening balance of $50,000 and a minimum investment per borrower-payment dependent note (BDN) of $1,000. Investors receive access to data from across the full Funding Circle loan book, and can either browse the marketplace and select individual investments or set criteria and invest automatically through an auto-bid function. Every loan on the marketplace is underwritten by Funding Circle’s experienced underwriting team and assigned a risk score ranging from A+ to C. Funding Circle is currently only accepting investment from individuals and entities who meet the SEC’s criteria for accredited investors.

For the nine million accredited investors in the U.S., Hodges offered his top tips for individuals considering investing in P2P loans:

  1. Do your research: Given the investor appetite for yield, there are a lot of new entrants into the P2P lending market, so make sure you are partnering with a well-established and respected originator. Look for a platform that is well capitalized with clear and transparent underwriting procedures, experience and proper infrastructure around servicing.
  2. Hold them in your IRA: Along with attractive yields and consistent returns, enjoy the tax benefits of holding P2P loans in an individual retirement account. If your current retirement account cannot accommodate P2P loans, consider opening an IRA through one of the major P2P lending platforms to access tax-free or tax-deferred income.
  3. Automate your investing: Save yourself hours of wading through hundreds of loans each week by working with a platform that offers an auto-bid function. Based on your investment goals and risk tolerance, simply set your investment criteria – such as preferred rate, term, risk level, industry sector or region – and then set it and forget it.
  4. Reinvest your gains: As you receive principle and interest payments, ensure they are automatically lent back out to new borrowers, so you can spread your money across even more loans and further diversify your portfolio. The last thing you want is cash sitting in your account earning no interest and bringing down your overall return.

About Funding Circle:

Funding Circle is the world’s leading online marketplace lender exclusively focused on small business. By combining cutting edge technology with industry-leading risk management models, Funding Circle provides small businesses with fast, fair and transparent finance and investors with access to attractive returns through an online marketplace. Since its foundation in 2010, Funding Circle has lent more than $800 million globally to help small business owners grow their businesses, create new jobs and ultimately accelerate economic growth. More information is available at www.fundingcircle.com/us

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