Category: Finance

Cash ManagementFinanceSecuritiesTransactional and Investment Banking

What is next for cryptocurrency?

The rise of cryptocurrency is to be seen as a democratising force within the global economy. For example, secured token offering, has emerged as a true competitor to the traditional Initial Public Offering (IPO) for growing businesses. Judging from the growing acceptance of cryptocurrency by countries and companies, it is predicted that institutional investors will move towards secure cryptocurrency investments over the next decade, if not earlier. Ana Bencic, President and Founder of NextHash explores this phenomenon in more detail.

 

Uber Technologies Inc.’s large initial public offering launched in May and the ride-hailing app has run into some trouble. Uber proposed to go public with a $120 billion valuation, to be pitched by financiers at Morgan Stanley and Goldman Sachs ahead of its IPO. Nonetheless, the company eventually listed with a $75.5 billion market cap. The New York Times elucidated that institutional investors, many who privately owned Uber stock, would not purchase additional shares at a higher price. Uber had received in excesses of $10 billion from institutional investors and private equity firms, among other investors, according to the report and many bought their Uber shares at valuations below $61 billion.

 

The ride-hailing giant priced its IPO on Thursday 9th May at $45 a share, raising a minimum of $8.1 billion and putting Uber’s IPO well behind some of the other, large offerings on the U.S. market in recent years. Facebook Inc raised $16 billion its offering in 2012, while Visa Inc. raised close to $18 billion in 2008 and Alibaba Group Holding Ltd. brought in around $25 billion in 2014.

 

Initial Public Offerings can offer companies the prospect to raise new equity capital; to monetise the investments of private shareholders such as corporation founders or private equity investors and to enable simple trading of existing holdings or future capital raising by becoming publicly traded enterprises. 

 

Nevertheless, for companies looking to list, there are potential drawbacks. Foremost, there is the risk that the required funding will not be raised. Additionally, the cost for accounting, marketing and legal professionals to get to the point of an IPO can be sizeable. It might also necessitate a significant amount of time and effort from the management team, potentially disrupting them from their primary task of running the business. Furthermore, as in Uber’s case, there is a. While no promises can be made in these circumstances, many may be looking at the recent state of these tech unicorns (privately held start-up enterprises valued at over $1 billion) such as Uber and even Facebook may have people pondering if the next big thing will follow the same path. 

 

Aside from financial sacrifice, the time and effort to get to the IPO stage and the administration required once a company has gone public or floated, is considerable. For companies at the front-line of technological advancements, time is of the essence. According to Street Directory, an IPO typically takes between six and nine months. In some cases, this procedure can take up to 18 months. For high-growth businesses, this kind of interval may well bump potential unicorns off their path to a £1 billion valuation and present their rivals with a huge advantage. So what other prospects do highly scalable businesses have? 

 

The cryptocurrency market provides distinctive opportunities for businesses in need of access to vital growth finance and for investors desiring access to potential unicorn businesses at an early stage. This is made likely by cryptocurrency platforms’ capacity to operate across borders, an advantage that isn’t possessed by conventional markets.

 

In April, the French parliament permitted a ground-breaking financial sector bill which aims to encourage both cryptocurrency traders and issuers to set up in France. Organisations looking to issue or trade both existing and novel cryptocurrencies will soon have the option to apply for official accreditation.  The scheduled certification process exhibits a degree of official acknowledgement of the cryptocurrency marketplace. Bills like this enable French investors to trade and invest cryptocurrencies, as well as facilitating businesses to be traded as a Secured Token Offering which would give investors, traders, and entrepreneurs a way to trade and exchange tokens for cryptocurrencies, bringing the ecosystem into the cryptocurrency world. In exchange for charging tax, France is laying the foundations for the Europe-wide adoption of cryptocurrency trading.

France is pushing for the European Union to adopt a regulatory framework on cryptocurrencies.

 

There has been a largely positive attitude towards cryptocurrency by several countries. Malta, Slovenia and France are strong examples of those who are encouraging the implementation and use of cryptocurrency for trading and investment. The ability to invest or trade freely and across borders is an attractive prospect for businesses, who are able to receive financial investment from foreign parties.

 

New technologies are allowing businesses that are not in a jurisdiction that has cryptocurrency regulation in place yet to be included in the new, second generation of scaling business investment. 

 

With Brexit on the horizon for the UK, economists are making their forecasts about how the worth of the pound will be affected. Due to the interdependence of the pound and euro, some have claimed that in either of the potential outcomes- there will likely be some loss in value to these traditional forms of currency.  Cryptocurrencies offer an alternative to traditional, fiat currencies for both consumers and companies, due to their unique advantages of being decentralised, transparent and wholly unaffected by the Brexit situation

 

With incongruent regulation and legal frameworks throughout the globe, platforms that empower a corporation or investor in one jurisdiction to trade or exchange tokens or currency with another trader in another country with a different statute could open the doors to potential unicorn companies to thousands of family offices, hedge funds and institutional investors in a matter of years. In the medium term, platforms that give businesses access to global growth finance could help developing countries and the wider global economy grow at a truly competitive rate to their Western counterparts. 

 

CONCLUSION

 

Cryptocurrencies have spent the last few years in a stage of growth and maturation. The emergent importance of blockchain-based cryptocurrencies is easy to grasp today. From the snowballing rate of adoption of Ethereum and Bitcoin by conventional institutions, the instituting of digital-assets trading platforms and the implementation of cryptocurrency-specific legislation by numerous countries both inside and outside of the EU- cryptocurrency is seeing far greater adoption by both institutional and private traders/investors. With the ability to invest in a corporation from anyplace in the world, quicker than by traditional means and with a far greater potential for a swift return on investment, cryptocurrency offers manifold unique and substantial advantages that have fortified it a lasting place in society.

 

 

Foreign Direct InvestmentHigh Net-worth Individuals

Puzzel receives growth investment from Marlin Equity Partners

Puzzel, a leading European omni-channel cloud contact centre software provider, today announced the completion of a majority recapitalisation and growth investment from Marlin Equity Partners (“Marlin”), a global investment firm with over $6.7 billion of capital under management. Puzzel’s best-in-class, multi-tenant cloud contact centre as a service (“CCaaS”) platform allows clients worldwide to manage and optimise their customer interactions across voice, email, chat and social media platforms.

“Puzzel’s leading position in the market, knowledgeable employees and pioneering technology platform positions us well to successfully scale our business,” said Børge Astrup, CEO of Puzzel. “Marlin has a proven track record of supporting and partnering with high-growth software businesses and we look forward to working with them to execute our strategic plan to accelerate growth, bring new and added functionality to our customers and expand into new markets.”

“In Puzzel, we saw a business with a comprehensive omni-channel CCaaS solution that is both scalable and flexible, and designed to support contact centres of all sizes,” said Mike Wilkinson, vice president at Marlin. 

“The company has experienced tremendous growth across Europe that is being further fuelled by feedback and advocacy from market-leading customers. We are excited to partner with an exceptional management team to seek new partnerships, invest in new opportunities to enhance the product suite and expand the company’s geographic presence.”

About Puzzel
Puzzel is a leading cloud-based contact centre software provider and one of the first pioneers to develop a cloud-based contact centre offering. Today, Puzzel combines its omni-channel technology with artificial intelligence capabilities to provide comprehensive, end-to-end customer interaction solutions in an age of digitisation. Puzzel was named a Challenger in the 2018 Gartner Magic Quadrant for Contact Centre as a Service, Western Europe, Report 2018 for the fourth consecutive year for its strong growth, functional capabilities, strengths in standards and compliance, customer service and support. The company is headquartered in Oslo, Norway, with offices in six European markets including the U.K. For more information, please visit Puzzel.

About Marlin Equity Partners
Marlin Equity Partners is a global investment firm with over $6.7 billion of capital under management. The firm is focused on providing corporate parents, shareholders and other stakeholders with tailored solutions that meet their business and liquidity needs. Marlin invests in businesses across multiple industries where its capital base, industry relationships and extensive network of operational resources significantly strengthen a company’s outlook and enhance value. Since its inception, Marlin, through its group of funds and related companies, has successfully completed over 140 acquisitions. The firm is headquartered in Los Angeles, California with an additional office in London. For more information, please visit Marlin Equity

Corporate Finance and M&A/Deals

APSCo Announces Trade Delegation to US and Canada

The Association of Professional Staffing Companies (APSCo) has announced it’s much anticipated five day Trade Delegation to New York and Toronto beginning on the 11th November 2019, following successful visits to Singapore, Brazil, Japan and China in previous years.

The event, which is kindly sponsored by Saffery Champness and Squire Patton Boggs, marks the second time the trade association has travelled with members to North America, after a delegation of 28 visited New York and San Francisco in 2017. Feedback from the previous cohort was extremely positive, with Chris Jackson, Founder Director of Understanding Recruitment commenting, “I collected a huge amount of information to take away and am now in a position to make a good and educated decision on whether we’re going to hit the States over the next 12 months”.

During the trip, delegates will receive privileged access to key contacts across the sector, briefings from specialists about business opportunities and market trends and practical advice from experienced recruitment leaders operating in the region.

The delegation will be led by Ann Swain, Chief Executive of APSCo, who commented:

“With a $133bn turnover, the US staffing market is the largest in the world, while Staffing Industry Analysts forecasts that the Canadian staffing market will be worth CAD 9.7bn in 2019. This strength, together with low barriers to entry has made the United States and Canada target destinations for ambitious firms looking to expand their global footprint and diversify their growth strategies.

“If you are looking to develop your business across the pond, or simply want to ‘dip your toe in the water’ this trip is an ideal way to make a cost-effective assessment of the opportunities available.”

Delegates will visit New York on the 11th and 12th of November and Toronto on the 14th and 15th of November, with a day travelling in between.
For further information and to book your place, please email [email protected].

Finance

Solar power company says commercial-scale solar power will offer businesses financial rewards without feed-in tariffs

Contrary to the opinion of much of the renewable energy sector, the abolition of the Government’s feed-in tariff scheme (FiTS) today is not necessarily bad news. Commercial-scale roof-top solar power is booming and will continue to flourish even when the FiTS ends, says solar power company, Mypower, which was responsible for introducing solar power to Gloucester Cathedral as well as to industry, commerce and farms. The FiTS has supported the development of renewable energy since 2010, but Mypower believes its removal will boost the commercial sector’s adoption of solar power and help companies to significantly reduce their operational costs. Government should now focus upon energy storage technology as this is the next barrier to clean energy growth.

Roof-top commercial-scale solar energy has been successfully competing with ‘conventional’ energy generation in the mainstream market for some time. It is a financially viable source of energy being at least 60% cheaper than National Grid supplied electricity, costing 4-6p/kilowatt hour (kWh) compared to a minimum of 14p/kWh respectively. Solar PV systems are 50% more efficient and two-thirds cheaper than ten years ago: a 50kW system costing £130,000 in 2009 now costs under £40,000. Solar power now offers companies a return on investment of over 14%.

Mypower has been designing and installing solar PV systems to SME’s, corporates and farmers for ten years, and believes that removing the FiTS will create a stable and market driven demand for solar PV systems within the corporate sector: “Ending Feed-In Tariffs removes reliance on Government policy which is a positive move for companies. Plus they can already receive greater payment for the spare power they sell to the National Grid than was being offered by the Government scheme.” explained Ben Harrison, Managing Partner at Mypower.

He continued “Previously, there was uncertainty about how Government policy would change the FiTS along with widespread negativity in the marketplace reacting to announcements over the years, dissuading many from considering solar power at all. Plus some companies’ perceived the FiTS as complex and others wouldn’t consider taking subsidies as a matter of principle.”

Mypower believes the feed-in tariff scheme has been the incentive that stimulated end users’ interest and purchasing. However, it has now done its job and is no longer required. The next impairment to advancing renewable energy, thinks Ben, is the current limitation in energy storage capacity. The Government needs to concentrate attention upon supporting this area. Dedicated investment and volume sales are required to make the same dramatic leaps forward in energy and batter storage technology as happened in the past decade for solar-generated electricity.

Last year, the UK Government launched the Faraday Challenge to invest £248 million into battery development companies and initiatives between 2018-2022. In comparison, President Macron has just announced the French Government’s investing £597 million (700 million Euros) into battery cell manufacturing, whilst the German government has committed over £1,750 million (2 billion Euros) for building battery cell factories. The German Government offers subsidies to homeowners to install battery storage, with Italy and Ireland planning to introduce their own schemes.

“We’d urge the UK Government to consider an on-going subsidy system aimed at accelerating the development of the next generation of this technology. Whoever discovers the holy grail of energy storage will have discovered the goose that lays the golden egg and it would be a significant boost to the UK economy if it could be a British company.” said Ben.

Finance

Balancing the Books on delivery – the right approach for retailers

A clear and well-prepared delivery strategy can be the stepping stone for retail growth; gaining and retaining customers to help drive revenue. Every facet of delivery, from checkout to doorstep influences the likelihood of that customer purchasing from that retailer again. Poorly executed delivery costs UK retailers up to £1.2 billion in avoidable costs each year, according to IMRG’s latest estimates, which emphasises the importance of choosing the right delivery approach.

So, what aspects of delivery should retailers be investing in as a priority? Where should they be focussing their efforts in order to maximise their return?

Are retailers looking at customer experience incorrectly?

There has been a trend in recent years for retailers to flock towards ‘next day or no cost’ delivery but operational and commercial common sense tells us that there is no such thing as ‘free delivery’ for retailers. The online supply chain has a finite capacity for an ‘everything tomorrow’ approach and retailers need to consider this before jumping to ‘free delivery’ as a first port of call.

There is a real danger of retailers over-promising and under-delivering when the average shopper doesn’t necessarily want a premium delivery option all the time. Every shopper is different, and every delivery may have different requirements depending on what it contains, and why and when it has been ordered. All of this should be taken into account as part of a robust delivery strategy.

Your last-minute shoppers will always want ‘fast and free’ but what most shoppers really want is a clearly communicated delivery offer that follows through on what is promised. Perhaps retailers should instead be looking at offering a broader range of delivery options and the chance to specify when or where the delivery will arrive. Customers wants convenience, so retailers need to offer the widest range of delivery options they can to appease them. This is emphasised by the latest research into consumer delivery from IMRG and Global Freight Solutions, which outlines that in 2018, 41 percent of consumers indicated they had abandoned their cart due to insufficient delivery options.

The Brexit effect

As the deadline for Brexit gets ever closer and remains uncertain, its impact on delivery looms larger.

Up until now, it has provided opportunities for online selling into Europe with a weaker pound making UK retailers a more attractive proposition to EU shoppers. Since the referendum decision at the end of June 2016, we have seen the proportion of UK cross-border volume going to Euro destinations, increase.

However, this may all be about to change. With so much uncertainty surrounding Brexit, there will be a lot to learn about dealing with the EU in the coming months and years, so common sense suggests contingency plans must be made, which should legislate for:

  • Longer cross-border delivery lead times

  • Reviewing all HS code classification to ensure products attract the correct duties and taxes

  • Making changes to customer messaging, in order to manage expectations

  • Implementing growth strategies in non-EU markets (eBay, Etsy, Alibaba)

  • Enabling transparent delivery and duty cost information at point of checkout

  • Implement paperless trading (PLT) services for non-UK destinations to speed customs clearance and reduce transit times

The retail industry is anticipating longer and more complex duty and tax processes, and higher delivery costs with longer delivery lead times into EU markets. Retailers will need to reach out to carrier management experts to navigate this new territory and ensure it doesn’t hamper their business.

Delivering for the right price

The dilemma for retailers is working out how to provide a delivery offering that gives a more specific and sustainable customer experience with better control of costs in both the UK and cross-border environments. That isn’t easy without support.

To make this possible, a multi-carrier approach is required, enabling access to a range of delivery services, using order characteristics and specific customer requirements to offer the right solution from a sensible set of options relevant to the destination country.

So, for ecommerce brands, what are the fundamentals their delivery strategy needs to offer? What is essential in order for their business to be successful?

  • Delivery to a designated address

    • A standard ‘free’ or at low cost option

    • An express option at a small premium

    • A timed/specified day option at a higher premium (weekend or evening delivery)

  • At least one click & collect option (if available):

    • Free in-store collection

    • Third-party (pick-up point/locker) at a lower cost than the standard designated address delivery

These solutions are all readily available to retailers, it’s often just a case of pulling them together. But when you are busy running a business, it can be difficult to make the time.

What’s holding retailers back from delivering?

Even if businesses want to offer that ‘Amazon-style’ delivery of both choice and convenience, in order to compete with the likes of Amazon Prime, they are often being hampered by their own internal constraints. For example, the cost and complexity of integrating more delivery options and carriers into their systems may prove a stumbling block. Moreover, the effort in managing multiple carriers at once, particularly for an SME, may be far too big a task. That’s before considering the expertise needed on knowing which services to offer or how to access them.

An affordable delivery strategy

The concept of ‘free delivery’ seems to have deeply engrained itself into the minds of consumers and retailers alike, but many retailers seem so desperate to offer it, they don’t stop to think about whether or not they should first. Provided delivery is well-communicated and well-executed, retailers can remain competitive.

The reality is, not every retailer is going to have the same resources and scope to carry out the delivery approach of the big brands, so it doesn’t make sense to blindly follow them. Retailers need to be devising delivery strategies within the context of their customers, capabilities, and commercial plan. A great delivery offering does not have to break the bank.

Retailers need not be restricted by what they can do in-house either. Enterprise carrier management experts can be of great assistance in these situations when taking it all on alone seems overwhelming or unachievable. These managed service experts can help retailers scale their business cost-effectively through delivery, so that they’re not being wasteful. Convenient delivery options that are supported by clear communication is the way forward for retailers.

FinanceSecurities

72% of Brits Have Fallen Victim to These Scamming Techniques

Did you know that every year, £190bn of Brits’ money is lost to fraud – a figure which is a little less than both the health and defence budgets combined? Unfortunately, it gets much worse – an investigation by price comparison experts, Money Guru, have revealed that almost three quarters (72%)of Brits have fallen victim to scamming techniques at some point.

In order to help raise awareness of this growing problem, they have created the ultimate guide to spotting and stopping scams.  

30% of Brits Duped into Authorising Access to Their Bank Account – With No Legal Protection

Although we live in an increasingly digital world, you may be surprised to discover that a lot of fraud actually happens face-to-face, over the phone or through postal services. Smart scammers have begun ticking people into handing over crucial details and access to accounts through this method otherwise known as Authorised Push Payments (APP). Out of the £500m lost in the first half of 2018, 30% (£145m) of that was lost through APP.

What’s worse is that currently, people subject to this kind of scam have no legal protection to cover. Under current regulations, if your bank has not taken enough action – such as not reimbursing you or by not responding – then you have no right to complain or escalate your complaints to any authority.

 

72% of Brits Were Scammed Over a Two-year Period

Scamming is something that can happen to any of us – and it does, on a regular basis. A report from Citizens Advice revealed that 3 out of 4 of us (72%) were scammed over a two-year period between 2015-2017. Even if you haven’t personally been scammed, chances are you’ll know someone who has 1 in 10 reported knowing someone who has been a victim of fraud.

Almost Half (44%) of Fraud Victims Do Not Receive a Full Reimbursement

Research from the Office for National Statistics has revealed that a little less than half of those who were a victim of fraud received no or a partial refund. As you can see from the graph below, the majority of reported losses are under £250 (62%) but almost a quarter of Brits (22%) have been scammed out of £500 or more.

39% of Brits are Targeted by Scammers for Oversharing on Social Media

There’s a certain stereotype that fraud is only something that happens to the older generation. Whilst this is partially true – 5 million people over the age of 65 believe they have been targeted by scammers – they are not the only target demographic.

Scammers have begun targeting those who are active on social media. In fact, 39% of Brits are targeted due to oversharing their highlights online. In addition, 51% of us store e-receipts on our phone which again are targeted by scammers due to holding sensitive information.

Top 10 Scams to Be Aware Of

  1. Rogue traders and bogus callers – getting you to set up an account for a catalogue.
  2. Scams by telephone, letter or email – a fraudster pretending to be your bank or telephone provider, and asking you to share your details.  
  3. Pensions – offering unsolicited advice, a pension review or an investment opportunity.
  4. Money mules – someone attempting to use your account to launder funds, whilst promising a fee in return.
  5. Copycat websites – charging a fee to review or process official documents, or selling items that aren’t really for sale.
  6. Tech support – being told your computer has a virus and that it can be fixed – for a fee.
  7. Employment scams – paying for training courses that don’t exist.
  8. Auction sites – buying goods that don’t exist, through auction sites or asking you to pay through a bank transfer.
  9. Ticket scams – selling a fake ticket on an illegitimate site, which unfortunately can’t be refunded.
  10. Phishing – receiving a text or email asking you to log into your account, which will then reveal your password to cybercriminals

 

How to Avoid a Scam

  • Never give away your personal details such as passwords and bank account numbers. Legitimate companies will never ask for these.
  • Never let a stranger into your home.
  • Never download attachments or files from an email pr click any links within an email.
  • Never directly transfer money to someone unless you trust them 100% and always keep track of your transactions.
blockchain
BankingFinance

Swiss President Ueli Maurer to Attend 4th International Blockchain Conference

blockchain

Swiss President Ueli Maurer to Attend 4th International Blockchain Conference CV Summit in Zug

The CV Summit, held in the heart of the Crypto Valley, in Zug, Switzerland, has become one of the most important blockchain events in Switzerland. The summit’s 4th edition on March 27th will revolve around #BUIDL, focusing on the development of the technology instead of crypto speculations. The welcome address will be held by the President of the Swiss Confederation and Finance Minister Ueli Maurer, who is a strong advocate of the blockchain technology and the Blockchain Nation Switzerland.

The 4th edition of the CV Summit starts on March 26th with an Open House networking afternoon and the CV Competition Top 10 pitches at the CV Lab’s newly inaugurated Liquid Lounge. The Top 3 projects will then present their blockchain solutions the next day at the official CV Summit. The CV Competition is a startup contest for blockchain projects. Each competition targets a specific industry: this year everything revolves around the real estate industry. The winner receives $100,000 in funding, expert coaching and complementary working space at CV Labs.

On March 27th, the official CV Summit at the Theater Casino in Zug starts with opening remarks by the newly instated Mayor of the City of Zug, Karl Kobelt. The Mayor won’t be the only political representative at the summit: later in the day, the Swiss President Ueli Maurer will provide some updates on “Blockchain Nation Switzerland”. As the head of the Federal Department of Finance, Ueli Maurer is responsible for the new blockchain regulations expected in the next weeks.
Throughout the day, experienced industry leaders, innovators and entrepreneurs will be sharing their insights and views on how to #BUIDL towards the crypto spring. Notable speakers include Jorge Sebastiao (CTO Ecosystem, Huawei Technologies), Nathan Kaiser (Chairperson, Cardano Foundation) and Niklas Nikolajsen (Co-CEO and Chairman, Bitcoin Suisse), with more to be announced soon. Companies represented at the summit include Alethena, Bitcoin Suisse, Cardano, Coreledger, Forctis.io, Bank Frick, Generali, IOHK, inacta, Kucoin, Lamassu, Lykke, Mt. Pelerin, PwC & strategy&, Swiss Economics, SwissRe Sygnum, ZBX and others.

“Over the last two years, the CV Summit has become an integral part of the Crypto Valley community and the international blockchain scene. Themed #BUIDL towards Crypto Spring, this year’s edition shows how the industry is focusing on the further development of blockchain technology after the market correction in the so-called ‘Crypto Winter’”, says Mathias Ruch, Founder & CEO of CV VC and the CV Summit.

Glossary: #BUIDL
Crypto slang for “to build” – meaning do develop the technology and the ecosystems. Derived from the term “to HODL”, which is slang in the cryptocurrency community for holding a cryptocurrency rather than selling it. It originated in 2013 in a post on a Bitcoin forum message board, when an apparently inebriated user wrote “I am hodling” (sic) instead of “holding”.

Foreign Direct InvestmentFunds of Funds

Bitcoin: Stability Not Likely For Burgeoning Investment Product

Since it first became accepted as an investment product, Bitcoin and other cryptocurrencies have been fluctuating in price and popularity, going from a viable replacement for cash and credit cards through to merely another flash-in-the-pan concept. Hannah Stevenson, Staff Writer, shares an insight into this product and how its value has changed since it first took off.

Cryptocurrencies, a digital currency that can be exchanged for goods and services in a similar way to cash, have been in circulation since around 2009, although they only became mainstream more recently. Some firms even started accepting it as genuine currency, whilst others have viewed it as an investment opportunity.

Over the years, the currencies have fluctuated in value, as investors and users alike try to understand their potential and adjust to the realities of using online currency as opposed to physical money.

On 8th May, the world’s largest and original digital currency, Bitcoin, jumped around 10 per cent within 24 hours, pushing past $3,700 for the first time in three weeks. Nigel Green, chief executive of deVere Group, commented on the increase.

“It was a relatively sudden jump, and, of course, positive news for those currently holding Bitcoin. However, the price only reached the top of the trading range and investors should not be popping champagne corks just yet.”

 “There are three likely drivers of Bitcoin’s price spike. First, there are widely published reports that according to a leaked interview with a commissioner, a Bitcoin ETF could imminently secure approval from the U.S. securities watchdog.

“Second, the development of the lightning network which will dramatically improve Bitcoin’s well-documented scalability issues, allowing it to move towards mass adoption. And third, the 2020 Bitcoin halving. The code for mining Bitcoin halves around every four years and the next one is set for May 2020. When the code halves, miners receive 50 per cent fewer coins every few minutes. History shows that there is typically a considerable Bitcoin surge resulting from halving events.”

“Bitcoin is the flagship cryptocurrency and, as such, we can expect when its values climb, it will drive prices of other major digital currencies such as Ethereum and XRP.”

This increase is a positive point for Bitcoin, which has faced many challenges in 2019 already, with a number of firms deciding that the currency’s popularity in 2017-2018 was not enough to continue to make it a viable option as a form of payment. 

Among those firms whose attitude towards Bitcoin and other cryptocurrencies is forward-thinking waste management firm, BusinessWaste.co.uk, which has recently said that it is ‘reluctantly’ no longer accepting cryptocurrencies – such as Bitcoin – as payment for its services.

The company originally announced it had become the first refuse and recycling business to accept these virtual currencies as payment in 2017 in order to give flexibility to their customers in an increasingly digital age. However, the firm says that despite its efforts, the uncertainties of the market are making digital currencies an unreliable source of payment.

Mark Hall, Communications Director of BusinessWaste.co.uk, commented on the figures and his firm’s inability to accept the currency as a form of payment.

“Cryptocurrencies have become much more mainstream in recent years – which is why we were happy to move with the times and accept these digital forms of money as payment. As a business we are dedicated to being thought leaders and innovating to provide the best service to our clients, and accepting internationally-recognised digital currencies was one way we could do that – but, as with many emerging technologies, there are still wrinkles to be ironed out within the cryptocurrency market.”

These forms of currency – which include the most well-known, Bitcoin, as well as other forms such as Ethereum and Litecoin – are not tied to a particular country’s economy as with standard, or fiat, currency. This means it has a tendency to be much more volatile than fiat currency; for example, in 2010, when the currency made its first real-world transaction, 1 Bitcoin (BTC) was worth less than £0.01. In December 2017, 1 BTC was worth over £15,000 – a fluctuation many times higher than a fiat currency would experience over a 7-year period.

This volatility has come to be considered an intrinsic hazard of a currency whose value works much like traditional stocks and shares – where market rumours and movement have potentially massive knock-on effects on its value. This could have potentially serious ramifications for businesses who accept crypto payments and then find themselves with a payment which has dropped significantly in value within a short period – such as in December 2017, when 1 BTC fell in value from £15,000 to £2,500 today in response a crackdown on improper practices in the market.

However, the popularity of cryptocurrencies has also led to unscrupulous users attempting to use ‘scam’ or fake coins to pay for goods and services. Cryptocurrencies rely on key information to verify that they are legitimate, such as the ‘white paper’ which details the origins of a coin, who made it, and how it works. These papers can be forged and simply just made up – which can cause businesses who end up with scam coins to be out of pocket, and as such firms such as BusinessWaste.co.uk have come to realise their fallibility and declined to accept them as payment.

Overall, the issue of Bitcoin and other cryptocurrency’s effectiveness and continued acceptance rests on proving their legitimacy as a currency and creating systems where they can be safely traded. This will remain a challenge for the future and will provide many interesting developments for investors and users alike.

Corporate Finance and M&A/Deals

Guidant Global appoints Director to drive strategic growth in Australian market

Guidant Global, part of Impellam Group is delighted to announce that it has appointed Doug Edmonds as Director, APAC with a responsibility to drive future growth in Australia and the Asia-Pacific region. The move comes as the global leader in talent acquisition and managed workforce solutions continues to make rapid progress in expanding and transforming its portfolio across international markets.

The announcement follows PwC’s latest CEO Survey – which found that 71% of Australian business leaders feel that a lack of key skills is a threat to growth – with many facing barriers to building the required workforce because of limited insights into current workforce capability and future requirements.

Guidant Global champions a better, more forward-thinking way of working and has a core philosophy of shifting the focus to people – the vibrant force that drives thriving businesses and creates energy and opportunity. With extensive experience in resourcing and managed service recruitment in Australia and Asia, Edmonds is well placed to lead the company’s strategic plans to deliver its global expertise in a way which is tailored to the local geographies. In fact, Impellam is no stranger to the region. As well as Guidant Global, group companies Comensura, Medacs Global Group and Carbon60 all have significant operations within Australasia and Guidant Global already operates in India, China, and Malaysia.

Commenting on his appointment, Doug Edmonds, Director at Guidant Global, said: “Here in Australia, and indeed in wider Asia markets, there is a real need for Guidant’s collaborative, creative and agile approach to managed service recruitment. I look forward to reconnecting with the APAC market at a time when employers are seeking solutions around talent management – and in a capacity where I can deliver Guidant Global’s commitment to finding better ways of working.”

Simon Blockley, CEO of Guidant Global, added: “This is a significant appointment for Guidant Global at a time when we are increasingly extending existing programmes into Australia and the Asia-Pacific region. Opportunities in this region are vast, and I have no doubt that Doug’s extensive experience and passion makes him the best person to drive growth strategy across APAC markets.”

digital tax
FinanceFundsTaxTransactional and Investment Banking

The importance of Making Tax Digital to the UK mid-market

The importance of Making Tax Digital to the UK mid-market

Written by Steve Lane, CTO at Access Group

With UK Government’s Making Tax Digital (MTD) deadline less than two months away, the race is on for UK organisations to understand the impact of MTD on their business. MTD could mean a significant shift in operations for some organisations, which means they need to act now in order to get themselves in order for the impending deadline.  


What MTD requires

The Making Tax Digital programme will require UK businesses with annual turnovers above the VAT threshold of £85,000 to keep digital records for VAT and submit their returns digitally. The points-based penalty system means business taxpayers gather points with each late submission of an MTD report, those with multiple businesses must submit tax reports for each of their businesses. To ease the transition process, HMRC is allowing the use of ‘bridging software’ to support the digitised submission and account information retrieval from spreadsheets. However, those without it in place risk not being able to carry out their business as usual.

While all respondents in Access Group’s survey use some type of electronic system for financial management, 96 percent of mid-market businesses still process a portion of their tax returns manually, for example performing off-system calculations, which could be problematic come 1st April if businesses fail to use bridging software to support the digital submission of their VAT returns. Which begs the question, why do some organisations still rely heavily on manually calculating? A large proportion of the finance professionals surveyed explained that they haven’t transitioned to 100 percent digital processes due to a lack of knowledge and training (26 percent) while others said it’s the fact that multiple legal entities are involved in VAT registration (23 percent).


Putting off MTD is no longer an option

Manually entering VAT is inefficient and opens businesses up to human error. Under the new regulations, mid-market businesses could stand to lose not only money in fines, but credibility within their field. Putting off making the necessary technical changes to your business is no longer an option.  

There are certain things that businesses simply cannot afford to ignore, for instance:  


Transformation

Deploying new business software isn’t always an easy decision. Especially when there are multiple ways to ensure your organisation remains compliant with government regulations. Considerations need to be made for either full business software transformation or a single solution update i.e. bridging software, to support. Given the impending deadline, businesses must act now, to ensure they’ve put in place measures that abide by the regulations.


Accreditations

When deciding to begin a digital transformation project, particularly with digitising financial systems, choosing a partner that has the proper government accreditations is vital. Acronyms like ISO or IL are ones to look out for.


Productivity

Digitising financial systems offers the business not only a more efficient, and free of human error way of working, but a more productive way as well. Entrusting admin-heavy tasks to intelligent software can free up time elsewhere to focus on innovation, business development and growth ambitions.

Whilst it’s important that businesses’ financial systems are all set for the 1st of April deadline, to think about Making Tax Digital solely in terms of tax compliance would be to miss the point. It’s the perfect opportunity for UK business’ senior management teams to take a broader perspective – one that turns this regulatory burden to the business’ advantage. The organisations who act now are the ones who will see greater efficiency and productivity, driving both business growth and profitability. It’s good practice to update your operational processes at any moment in time, the MTD deadline provides a good excuse for companies to do just that. Given the pressures coming from Government organisations to digitise and the complexities that go into technology investment, mid-market businesses need to ensure their finance teams’ house is in order to remain compliant and avoid fines in the new era of digital tax.

Corporate Finance and M&A/DealsSustainable FinanceTransactional and Investment Banking

The growth of the wind energy sector both in the UK and abroad

Greener initiatives are being utilised more and more across the globe, as Earth’s citizens try to safeguard the planet’s resources. We may have relied a lot on fossil fuels like gas and coal in the past, but due to these sources not being sustainable we’re now ambitious about developing practices which are more environmentally friendly.

The market for renewable energy now includes everything from wind turbines to wave power. Wind power is proving particularly popular, with the amount of energy generated across windfarms in just 2016 found to have exceeded the amount created via coal power plants in the UK for the first time ever. In fact, over 40 per cent of all the energy generated on Christmas Day 2016 was as a result of renewable sources and 75 per cent of that sum was from wind turbines.

As coal-fuelled electricity has dipped to its lowest output for 80 years, the future certainly looks bright for the renewables market and, in particular, the wind energy sector. Join joint integrity software experts HTL Group as they explore just how much potential this industry holds…

What we can expect in the near future

The wind energy sector had to reconsolidate record-breaking growth for the years between 2014 and 2016. In total, the global installed capacity at the end of 2016 was 486,790 MW — an impressive figure by anyone’s standards.

Growth is expected to pick-up once more in the years ahead though. In fact, there are predictions which expects the global installed capacity to rise to 546,100 MW. This year, this figure was anticipated to hit 607,000 MW before reaching 817,000 MW by 2021. Although the rate of growth is anticipated to slow, it’s clear that wind power will continue to occupy a large energy share on a global scale.

How is each area of the world performing? Asia, North America and Europe are expected to remain the dominant wind power markets. By 2021, it’s anticipated that Asia will create 357,100 GW of energy from wind turbines. Europe is expected to hit 234,800 GW, while North America is likely to generate 159,100 GW.

What’s more, emerging markets are predicted to continue their development. For example, Latin America will grow to 40,200 GW by 2021 — up from 15,300 GW in 2016 — while the Middle East and Africa will more than quadruple their output, growing from 3,900 GW in 2016 to 16,100 GW in 2021.

Investments to expect in the years ahead

Additional investments will obviously be required in order for the sector’s continued growth to be supported. In 2016, €43 billion was spent across Europe on constructing new wind farms, refinancing, fundraising and project acquisitions — an increase of €8 billion compared to 2015.

Offshore windfarms appear to be getting more attention than sites found onshore. Investments onshore dropped by 5%, while offshore reached a record-breaking €18.2 billion. Impressively, the UK is leading the way, raising €12.7 billion for new wind energy projects. This more than overshadows the country in second place, Germany, with €5.3 billion.

The total investment may be lower then. However, it’s clear that wind energy will remain vital to the global movement towards greener, more sustainable energy both now and in the future.

Cash ManagementFinanceFundsMarketsRisk Management

TOP RANKINGS FOR ASHFORDS LLP IN PITCHBOOK’S GLOBAL LEAGUE TABLES

Ashfords has again been ranked as one of the most active law firms globally in venture capital. The firm has been ranked 2nd in Europe for 2018 by PitchBook, which provides a comprehensive ranking of private equity and venture capital activity worldwide.

Ashfords is the only independent UK law firm to appear in the top five most active firms in Europe and has been placed in the top 5 in each of the past eight quarters.

PitchBook’s global review details top investors by region, firm headquarters, as well as the most active advisers and acquirers of PE-backed and VC-backed companies.

Chris Dyson, Partner and Head of Ashfords’ technology sector, commented: “Ashfords’ recognition in this prestigious league table confirms the team’s position as a leading venture capital practice in Europe. The team has deep expertise in this area and are very proud to work alongside many leading investment funds and growth companies.”

Deals the firm completed globally in 2018 include advising:

Notion Capital, Eden Ventures and BGF Ventures on the $350m sale of NewVoiceMedia to Vonage

Form3 on its investment from Draper Esprit, Barclays and Angel CoFund

Fluidly on its investment from Nyca Partners and Octopus

Anthemis on its investment in Realyse

Simply Cook on its investment from Octopus

WhiteHat on its investment from Lightspeed, Village Global, Anil Aggarwal, and Wendy Tan White

Mobius Motors on its investment from Pan-African Investment Company, Playfair Capital, VestedWorld and others

Local Globe on its investment in StatusToday

Holtzbrinck Ventures and Notion Capital on the sale of Dealflo to OneSpan

BGF on its investment in Ruroc.


Ashfords LLP
ashfords.co.uk

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Mayflex forms a Distribution Agreement with Global Invacom

Mayflex, the distributor of Converged IP Solutions, announces it has formed a distribution agreement with Global Invacom. The deal will see Mayflex and Global Invacom targeting Multi-Dwelling Unit projects by liaising with System Integrators, Consultants and End Users.

Global Invacom, the global provider of satellite communications equipment, specialises in Fibre Integrated Reception System (“FibreIRS”), delivering Satellite TV reception. Global Invacom’s vision is to increase the awareness of the advantages of FibreIRS and to work alongside Mayflex to help specify FibreIRS alongside cabling, data and CCTV Security.

Aaron Ghera, Sales Manager at Global Invacom, commented on the alliance: “Having seen interest from a number of organisations, we’re delighted to form a distribution agreement with Mayflex, who we believe have the resources, industry knowledge and proficiency to support our strategies.”

He continued, “Our plan is to minimise the amount of contacts required for a single project. For instance, rather than approaching four different supplies for your data, security, cabling and Satellite TV, Mayflex will supply all four services from one point of contact. By providing an integrated system solution, we can add more value to our customers and develop relationships that will see similar integrated systems across the UK.”

Ross McLetchie, Director of Sales, commented, “I am delighted to welcome Global Invacom on board with Mayflex. Incorporating this brand into our existing product portfolio will open up a host of new customer opportunities.”

Ross continued, “It is an exciting start to the year for Mayflex, as this agreement comes just shortly after the launch of Excel’s new Passive Optical Networks (PON) Solution.”

Similar in concept to PON infrastructure, FibreIRS technology is a new method of carrying satellite signals via fibre rather than coax. There are various advantages of using fibre such as reduction in signal loss, increased distance capacity, scalability and improved cost efficacy.

Ross concluded, “New customers to Mayflex can be assured of a first rate, knowledgeable team of sales and technical personnel. Partners will be provided with dedicated account management and the support needed to ensure the correct solution is specified and delivered on a project by project basis. I am confident that Excel’s new PON Solution and the Global Invacom range will become a staple part of our product portfolio and look forward to working with all parties involved.”

The FibreIRS technology itself was developed and manufactured by Global Invacom with the intention of revolutionising the satellite tv market. Over the years we’ve seen the development of similar products throughout the industry, however Global Invacom is determined to be at the forefront of the satellite industry and Mayflex are enthusiastic to support this drive.

The range of Global Invacom products will be widely available to purchase from Mayflex from February 2019. Global Invacom will also be sponsoring the upcoming Excel Partner Briefing events, taking place across the country in Birmingham, Manchester, Glasgow and London. There will be presentations on both the Excel PON Solution and Global Invacom’s FibreIRS Technology, as well as representatives available in the exhibition areas to discuss any requirements. Visit www.mayflex.com for further details or speak to the sales team on 0800 75 75 65.


BankingFinanceTransactional and Investment Banking

Investors prefer ‘disruptive’ start-ups, but give them less money

Entrepreneurs pitching ‘disruptive’ start-ups are 22% more likely to get funding, but receive 24% less investment than less risky ventures, according to new research from Rotterdam School of Management, Erasmus University (RSM).

A disruptive start-up, breaking away from existing products, services and business models, can potentially bring colossal returns for investors. But these ventures are also risky, with a considerable possibility of failure, says Timo van Balen, a researcher at RSM.

Timo analysed data of 918 start-ups from Start-Up Nation Central, a private non-profit organisation that has collected data on all Israeli start-ups since 2013. He compared the characteristics of each profile’s vision statement, aimed at investors, with how much funding the venture secured.

Alongside fellow researchers, Murat Tarakci of RSM and Ashish Sood of the University of California Riverside, he discovered that increasing the communication of a start-up’s disruptive vision improved the odds of receiving funding by an average of 22%. But it cut the amount invested by an average of 24%. This amounted to $87,000 less in the first investment round and $361,000 less in the second investment round.

Timo says: “Entrepreneurs increasingly talk about ‘disruption’, framing their products, technologies and ventures in this way to secure financial capital. We found that emphasising this image of a venture’s potential market disruption does increase the odds of receiving first-round funding. This is because the promise of being a ‘game-changer’ fosters investors’ expectations of extraordinary returns on their money. However, a highly disruptive venture’s future success is often uncertain, which deters investors from making large speculative investments into it.”

The research suggests that entrepreneurs can craft the communication of their vision to help achieve their funding goals.

Timo says: “Despite the temptation to pitch a venture as disruptive, entrepreneurs should be judicious with the ways they attempt to secure funding. If getting an investment of any size is very important, pitching a highly disruptive vision might be key to grabbing the right people’s attention. But if it’s more important to attract bigger investments, it might be smart to avoid communicating a disruptive vision of the effect of your start-up.”

Corporate Finance and M&A/DealsFinanceForeign Direct InvestmentIslamic Finance

Smart Dubai Launches Guidelines on Ethical use of Artificial Intelligence

  • Smart Dubai outlines standards for AI systems to ensure they are fair, transparent and accountable
  • World’s first city-government endorsed Smart AI Ethics Self Assessment Tool launched to help assess level of ethics in AI systems
  • Initiative aims to accelerate Dubai’s goals of becoming an AI powered city of the future

Dubai’s quest to become the world’s smartest city has received a strong ethical grounding with the unveiling of guidelines for the use of Artificial Intelligence (AI). The new ‘Ethical AI Toolkit,’ which provides advice to individuals and organisations offering AI services, has been formulated by the Smart Dubai Office (Smart Dubai) – the government department that has a mandate to make Dubai the world’s happiest city through innovation.

 

Outlining the need for the new guidelines, Smart Dubai says that they will encourage organisations that deliver AI services to place a priority on fairness, transparency and accountability and that they will serve to elevate the city’s position as a thought leader in in the adoption of AI across government services and beyond.

 

“Our vision is for Dubai to excel in the use of technology to maximise human benefit and happiness, as well as to be a global technology standard-setter. Artificial Intelligence plays an integral role in all of this. And with the use of AI growing exponentially across the globe, the ethical dimension of this nascent but rapidly proliferating technology is an increasing topic of discussion on the international stage,” said Her Excellency Dr. Aisha bint Butti bin Bishr, Director General of the Smart Dubai Office.

 

“There is an understanding by governments, NGOs and the private sector that AI regulation is needed, but that the field is not yet mature enough to devise fixed rules to govern it. However, organisations still require guidance and regulators still need to begin to learn how to oversee this emerging technology, but without creating restrictions that could stifle innovation. Smart Dubai’s Ethical AI Toolkit aims to provide advice in this area for all those involved in the AI sector,” she added.

 

As part of the toolkit, Smart Dubai has also launched the world’s first city-government endorsed AI Ethics Self-Assessment Tool. The AI Ethics Self-Assessment Tool is built to enable AI developers and operators evaluate the ethical level of their AI system, if implemented using Smart Dubai’s AI Ethical Principles and Guidelines.

 

Smart Dubai’s Ethical AI Toolkit was created using a benchmarking exercise and a consultation approach. Government sector entities, such as the Telecommunications Regulatory Authority, Dubai Electronic Security Centre, Dubai Health Authority, the Roads and Transport Authority, Dubai Municipality, Dubai Electricity and Water Authority and Dubai Land Department, were consulted during the initial feedback gathering, as were private sector companies including Microsoft, IBM, Google, Etisalat and PWC.

 

Smart Dubai is actively encouraging ongoing critiquing from across the AI community in relation to the guidelines. This feedback, combined with Smart Dubai’s research, aims to help iterate the Ethical AI Toolkit so that its framework and guidance keeps pace with technological advancements. The office is also establishing an Advisory Board, comprising leading AI and ethics experts from the private and public sectors, who will review the guidelines and help make continuous ongoing improvements to them.

 

Smart Dubai says that it wants to start discussions between different stakeholders in Dubai around AI ethics and for all components in the city’s technology ecosystem to work together to achieve a unified approach and reach common agreement on becoming more responsible on the use and development of AI systems. The office highlighted that it would like to see the Ethical AI Toolkit evolve into a universal, practical and applicable framework that informs ethical requirements for AI design and use and one that offers tangible suggestions to help stakeholders adhere to the ethics principle.

 

“By fusing data and innovation we’re preparing Dubai to become the AI city of the future. Artificial Intelligence will streamline day-to-day work life by providing fast and easy access to a wealth of data-driven information. Its consequences will be far-reaching and will impact every area of life, so creating guidelines for AI operatives is essential to provide an ethical underpinning to this evolution. Our aim is to offer unified guidance that is continuously improved in collaboration with our communities, with the eventual goal being to reach widespread agreement and adoption of commonly-agreed policies to inform the ethical use of AI, not just in Dubai but around the world,” said His Excellency Younus Al Nasser, Assistant Director General, Smart Dubai and CEO, Smart Dubai Data.

 

Smart Dubai’s Ethical AI Toolkit addresses some of the key issues around establishing regulatory principles relating to AI. These include the rapid evolution of the AI landscape that is leading to a fragmented approach to ethics, with each company dealing with ethical issues in their own way. They also intend to clear the ambiguity around what constitutes ethics in AI, as it is thought that ambiguity could supress innovation through entities holding back on research because they are unsure of future government actions. The toolkit also aims to improve trust in AI systems, with confidence in them cemented by the public being able to see that companies are following the new advice that is published transparently online.

Cash ManagementForeign Direct InvestmentPrivate FundsStock MarketsTransactional and Investment Banking

Can You Predict The Future Price of Bitcoin?

You can’t spend five minutes reading about cryptocurrencies without stumbling across at least one prediction for the future price of Bitcoin.

Across forums, social media, newsletters, blogs, news sites and every other corner of the internet — financial analysts, expert investors, bankers, tech icons, and new enthusiasts offer up their views.

Some cite careful analysis, some base it on past trends. While others are guessing or acting on their ‘intuition.’ Their predictions are varied, ranging from a plummet to zero, to millions.

With all this noise surrounding the Bitcoin price, you might be wondering whom to believe. Or if you should believe anyone at all. Is it possible to predict the future?

Investing begins with education, not buying. So it’s important to think about the information you base your buying decisions on.

How do people make price predictions?

There are two types of analysis used for predictions: fundamental and technical.

They’re used for everything from the stock market to Bitcoin. While other types of analysis do exist, these are the main ones.

Fundamental analysis

Fundamental analysis is all about intrinsic value. You look at the factors that give something value, then decide if it’s under or overvalued. Publicly traded companies release lots of information to help with this. So, for a stock you might look at a company’s:

  • Revenue (how much money it’s making)
  • Profit margins (how much of the revenue is profit)
  • Growth potential (how much money it could make in the future)
  • Management (how competent the people in charge are)

Some of these factors can be defined in numbers. Others come down to the judgement of the analyst.

For a cryptocurrency, you might look at its:

  • Price growth (how the price has grown over time)
  • Scalability (if it has the potential to keep growing)
  • Security (if the network is secure and safe from attacks

​Technical analysis

Technical analysis is different as it focuses on an asset’s price, not the asset itself. Maybe you’ve heard the phrase ‘past performance is not an indicator of future performance.’ But technical analysis bases future predictions on the past. This can be based on a short time frame (hours or even minutes) or long (months or years.)

To do this, you look for patterns and trends in price charts, such as:

  • The average price over a chosen time span
  • The price at which a lot of investors start buying
  • The price at which a lot of investors start selling
  • The overall price trend

Do fundamental and technical analyses work?

There’s no straightforward answer to that question. Both techniques can be useful, but they also have their limitations for cryptocurrencies.

Fundamental analysis works when investors base their decisions on fundamentals. This isn’t always the case for Bitcoin. Many investors base their decisions on the decisions they expect others to make.

Technical analysis assumes that a market follows rational rules and patterns. It’s less useful for cryptocurrencies because the market is still young. There isn’t as much past data to analyse. Cryptocurrencies also have less liquidity than something like stocks.

Self-defeating and self-fulfilling prophecies

When we talk about price predictions, we run into an important concept: self-defeating and self-fulfilling prophecies.

Making a prediction about the future can end up changing what actually happens.

The prediction about the future creates the future.

This isn’t the case when we talk about a system like the weather because we can’t change it.

But when you make predictions for a system involving people, it’s different.

Hearing predictions can cause people to change their behaviour.

Sometimes this happens in a way that prevents the prediction from coming true — a self-defeating prophecy — or it can cause the prediction to come true — a self-fulfilling prophecy.

Predictions about cryptocurrency prices have the power to influence how investors act. If it’s predicted the Bitcoin price will increase, this encourages more people to buy. This can drive up the price, and vice versa.

That brings us to incentives.

The issue of intentions

Incentives are what motivate people to do what they do. It’s an important concept in investing. Financial gain is a powerful driving force.

Most investors understandably want to do whatever will make them the most money. This can include making predictions that benefit them.

Let’s say you come across an article where the author claims Bitcoin will be worth $100,000 by December 1st 2019. Rather than taking that at face value, it’s important to ask: why are they saying this? If they know for certain, why don’t they put all their money into Bitcoin, and make a huge profit? Why are they sharing that information?

Likewise, if someone claims Bitcoin will drop, you might wonder why they’re saying that. If they know for certain, why don’t they keep quiet, short it, and make a big profit?

In both cases, we need to consider the underlying incentives.

If someone stands to profit from the Bitcoin price increasing, it’s natural they’ll predict it’s going to do that. They’re hoping this will turn into a self-fulfilling prophecy. If someone stands to benefit from it decreasing or to suffer if it increases, it’s not unexpected that they’ll predict it’s going to decrease.

Luck and probability

But if no one can predict the future, how come some people do make correct predictions?

Maybe you heard that your brother’s roommate’s cousin’s coworker’s uncle correctly predicted the price of Bitcoin. Or you’ve seen someone on Youtube who seems to always get it right.

The fact that no one can predict the future doesn’t mean no one can make correct predictions.

It comes down to luck, probabilities, and information asymmetries.

First, luck. Every day, thousands of people make predictions about Bitcoin prices. It’s inevitable that some of them will be correct by luck.

As they say, even a stopped clock is right twice a day. With so many people making predictions, it’s likely a percentage of them will be correct.

When professional forecasters make predictions, they usually base them on probabilities. What’s the most likely outcome? A weather forecaster might say it’s going to rain tomorrow because there’s a 62% probability. They don’t know it for sure. It’s just more likely than not.

Then there’s insider information. If you know something most investors don’t, you have a big advantage. For example, if you have insider information that Apple is about to release a new product, it’s reasonable to expect the stock will go up. But other investors buying Apple stock aren’t aware of that information, so they can’t predict it.

Insider information is less meaningful for cryptocurrencies. There’s a less direct link between fundamentals and prices. Events that seem like they should cause an increase or decrease can do the opposite or nothing.

Conclusion

The next time you look at a cryptocurrency price chart, imagine a crowd of people in a stadium, all moving at different times but appearing to create an organised rippling motion. Because that’s what you’re seeing: the combined actions of many people.

There’s no mystical, secret order to it. There’s just lots of people making decisions based on the information they receive.

ArticlesBankingFinanceSecurities

Tiso outdoor pursuits retailer chooses Eurostop connected retail systems to support business growth

Scotland’s leading outdoor pursuits retailer invests in Eurostop stock management and EPOS systems for faster and more accurate management of stock replenishment and promotions

Eurostop has announced that Tiso, Scotland’s leading outdoor clothing & equipment retailer, has selected Eurostop connected stock management and EPOS systems for over 13 stores. Tiso chose Eurostop e-rmis, its stock system, e-pos touch and the business intelligence module, e-cubes, to provide the detailed stock management and replenishment that it requires to manage the variety of items sold in store and online. Over recent years Tiso has increased both its number of outlets and product range, stocking a wide variety of clothing, footwear and equipment for adventurer sports, including alpine biking, climbing, skiing and general outdoor pursuits. The recent investment in Eurostop retail systems supports further expansion plans.

Tiso selected Eurostop’s e-rmis system to enable tracking of items from warehouse to store in detail. Eurostop’s system manages the entire replenishment process, from when items are picked using a wireless scanner, to packing and delivering to stores. Integration with the stock system provides head office with up-to-date sales data of all product lines across all store and online channels. In addition, detailed business insights from sales data using Eurostop’s e-cubes module aids merchandise planning.

Chris Tiso, Chief Executive of Tiso Stores said; “The replenishment facility within e rmis was exactly what we were looking for. It gives us far greater control of store replenishment, so we have an accurate view of the business.
“Customised reporting gives us a handle on the stores’ performance, especially with our expansion plans. Our new Aviemore store will have even greater floor space for customers to try out products and investing in Eurostop systems provides us with the technology in store to provide an even better customer experience from trial to purchase.”

As part of the connected systems for stock management, Tiso has installed Eurostop’s new e-pos touch, with added functionality to manage promotions and offers at the till point.
Eurostop’s e-rmis also enables Tiso to load products easily onto the system in bulk from one spreadsheet, with SKU, colours and sizes. Purchase orders can also be created in the same way, by importing a spreadsheet with supplier details, items, cost prices and quantity saving time and reducing errors in re-keying.

Phillip Moylan, Sales Manager at Eurostop said; “Retailers like Tiso have built successful businesses by staying true to their founding principles of loving the products that they sell and providing great customer service. Eurostop’s connected retail systems have been developed to underpin a retailer’s operations with accurate stock management to support sales and buyersE. Having the information at their fingertips enables them to react to customer demand and provide a great service.”

FinanceInfrastructureReal Estate

Arrow Business Communications Limited strengthens its presence in Scotland with a third acquisition and new office in Aberdeen

Arrow is delighted to announce the acquisition of Abica Ltd and it’s subsidiary PCR IT Ltd.

Abica and PCR are leading providers of Telecoms and IT services with offices in Glasgow, further expanding Arrow’s presence in Scotland. Abica and Arrow have much in common as both deliver a similar range of solutions from the same suppliers to customers in all industry sectors.

Arrow identified the potential of the Scottish telecoms market a number of years ago with its purchase of Orca Telecom in 2015 and Siebert Telecom in 2017. In addition to the acquisitions, Arrow has also recently augmented its Aberdeen team and moved into larger offices in the West End of the city.

All of the Directors and employees of Abica will be staying on and will work within the Arrow group, ensuring a smooth transition for all of its valued clients. David Munro and Gregory Barnett, founders of Abica, will continue to lead a number of key customer relationships and day to day activities. Gregory Barnett comments, “With Arrow’s long history of building successful businesses in the telecommunications sector, we couldn’t be happier about integrating Abica into Arrow. It bodes well for an exciting future over the coming years”.

Abica has over 650 customers and has deployed a range of solutions covering Connectivity, Mobility, IoT, and Unified Communications for both private and public sector organisations. The recent acquisition of PCR IT brought further IT capability into its solution portfolio.

Commenting on the acquisition, CEO of Arrow, Chris Russell said: “This was our third acquisition in 2018 and becomes our largest one to date. Abica further strengthens our presence in Scotland and combined with our existing business there will create a real Scottish Powerhouse. The Abica and PCR teams have a wealth of experience in delivering solutions to customers whilst maintaining the strong relationships they have built up over the years, which is exactly how we strive to conduct our business in Arrow”.

Arrow was assisted on the acquisition by both EY and Kemp Little, with Abica being advised by Sequence Advisers and Taylor Wessing.

Arrow is also delighted to announce the acquisition of European Utility Management Ltd (EUM), an Energy broker specialising in Property Development and Management companies.


ArticlesFinanceRegulation

Brexit, transferring data and what it all means – Prettys explains…

The House of Commons is yet to vote on the Prime Minister’s Brexit withdrawal agreement and, until then, there are still a number of unanswered questions, including the issue of transferring data internationally post-Brexit.

 

While the government has assured people and businesses in the UK that they will still be able to transfer any data they want into Europe after Brexit, receiving it as easily has not yet been confirmed by the EU. 

Leading Ipswich-based law firm, Prettys, has an expert Data Protection team highly experienced in dealing with a wide range of issues. Matthew Cole heads up the team and explains what could happen following the vote. He also gives advice to organisations on how they should approach their data sharing processes going forward.    

 

What regulations are currently in place? 

Currently with Data Protection law and GDPR regulations, if you’re within the European Economic Area (EEA), you are free to transfer data over national borders.

However, if you are transferring data from within the EEA to outside of the EEA, then you can only do it under certain grounds. These are:

  • If the third party has an adequacy agreement in place
  • If you have explicit consent from the data subjects to transfer their information
  • If permission has been given in a contract with the data subject

If none of these factors apply, then a safeguard is required to transfer the data. And safeguards take one of three forms:

  • Binding corporate rules
  • A contract with European Commission model clauses
  • A code of practice that enables transfers, such as the U.S. Privacy Shield

What happens if the withdrawal agreement is passed?

Should Parliament approve the withdrawal agreement, we will not have to worry about data transfer until 31 December 2020. This is when the transition period comes to an end and the withdrawal agreement works towards the parties getting an adequacy agreement.

The transition period will allow the UK to get to a stage where the EU recognises it as an adequate jurisdiction and data can continue to flow as normal.

This should be fairly straightforward, as our country already has good data protection and information regulations in place following GDPR.

 

What happens if the withdrawal agreement is not passed?

Unless there is any other intervention, such as a second referendum or the Article 50 notification is revoked, it would mean the UK crashes out of the EU and, ultimately, all bets will be off.

We will effectively become a ‘third country’ from 11.00pm GMT on 29 March 2019. This will make things complicated, as there will be no recognition in place from the EU and no adequacy agreement.

This means that we will be able to continue transferring data into the EU but they will find it much more difficult to receive it.     

 

So, what can businesses do in the meantime?

The first thing businesses need to do is get an audit to indicate where they currently share data in Europe and where data is received.

They also need to be aware of:

  • Where their servers are hosted
  • If their websites are maintained in other countries
  • If they’re using cloud services based in other countries 

Once they have established where their data transfers occur, they can then look for any significant data flows between member states and the UK and establish whether they have the ability to continue transferring this data. This may require them to put a safeguard in place.

Binding corporate rules are usually the best option here but, with all the regulatory bodies they need to go through for approval, it would not be possible for a business to get this in place by late March.

Migrating data is another option many businesses are exploring, which means putting all their data in a centre in mainland Europe or vice versa. 

Mathew Cole
FinanceFunds

Young people suffer more with gift guilt at Christmas

Christmas is a time of giving, with the UK spending 821 million pounds on Christmas gifts, it is clear that us Brits are extremely generous. However, worryingly one in four Brits feel pressured to spend a lot more than they can afford, sliding them into debt that can last months after the festive season is over. A truly unwanted Christmas gift.

The research conducted by Peachy, surveyed 2002 people’s Christmas shopping habits and attitudes towards money; lifting the lid on the subtle differences between those of a different gender, age and relationship status. Financial woes are expected to affect a quarter (25%) of Britons due to a costly and pressurising Christmas new research suggests. To ease financial worries and enjoy celebrating the festive season Katre Kaarenperk-Vanatoa from Peachy suggests:
“If you haven’t planned your Christmas costs ahead, you’re left to buy all your gifts in one month. In these circumstances, try to shop wisely by sticking to a budget and creating a gift list. Do not compare your gifts to others and remember that it is sentiment that counts not the price. Sometimes, handmade gifts are more greatly appreciated than expensive gadgets.
Ideally, spread the costs of Christmas shopping as much as possible without adding interest to your financial worries in the New Year”

The research also showed that men spend more money than women, however, men believe they spend too much. Despite this, men still continue to shop at a higher budget. Overall the majority of men (66%) felt relaxed when browsing and buying gifts for their loved ones, felt less pressured to buy a more expensive gift and found it less challenging to stick to a set budget compared to women who were significantly more stressed and less money conscious despite on average spending less of their wages on Christmas gifts than men.

40% of 18-24 year old’s fretted about what others had bought them for Christmas and felt guilty if others had spent more on gifts than they had. Despite this, other age groups (35-44 and 55+) spent more of their wages on Christmas presents in contrast to 18-24 year old’s. Interestingly, 24% of 18-24 year old’s admit to poor budgeting at Christmas time despite 29% feeling the financial pinch in January and struggling with finances. Those 55 years old and over old found Christmas shopping too hectic and only 29% wished they could spend more on Christmas gifts.

Single people find it more difficult to budget and felt that they could not spend as much as they would like on presents in comparison to those in relationships. The study also highlighted that married couples do not enjoy spending time with their loved ones as much single individuals, people in relationships and partners that live together over the festive season. Which could perhaps be to do with the contestant chore of fraternising with your in-laws over the Christmas period! Arguably another unwanted Christmas gift!

ArticlesCorporate Finance and M&A/DealsFunds of Funds

5 ways cognitive assistants are revolutionising banking

Martin Linstrom, Managing Director for UK and Ireland at IPsoft, looks at the next stage in technological evolution of the banking industry and how artificial intelligence (AI) will redefine banking as we know it.

 

The banking industry has made huge strides to drive innovation by investing in new technologies over the last few decades. Commercial banks first adopted telephone banking, then came internet banking and now, for most customers, all your financial services needs can be met via an app. Now, as we enter the conversational era enabled by cognitive AI, customer expectations have evolved once again.

 

Banks have long been ahead of the curve in terms of elevating the user experience for their customers and so, it’s perhaps unsurprising that many are already looking to AI-powered digital assistants and are investing in cognitive solutions to upgrade and scale customer-facing financial management processes. Many banks are also looking at how they can provide the same simple, frictionless service to their own employees. 

 

As AI-powered customer interfaces gain mainstream acceptance, we will once again see a revolution in technological change within the banking industry. So, what functions within banks will cognitive assistants transform?

 

Building a hybrid workforce

Virtual assistants have a twofold capability which is driving innovation in the banking industry. Firstly, they can be implemented in back office functions such as finance or HR and secondly, they can supplement customer service centres. Creating a hybrid workforce of human employees and AI-powered virtual assistants can help drive enormous cost efficiencies and increase staff productivity. Employees in administrative roles can pass their repetitive tasks over to their digital colleague, freeing up their time to focus on more creative or interesting work that requires soft skills whilst customer service agents can pass standard requests through an AI system leaving them with only the most complex of customer queries to deal with.

 

Ubiquitous customer services

One of the most attractive things about AI-powered customer services for banks is its ubiquity. With virtual customer service agents available 24/7 and through a variety of channels such as live message, telephone or email, it’s a win-win situation for both bank staff and customers. From a customer’s perspective, simple requests such as password resets or international transactions can be performed in an instant and there’s no need to visit the bank or spend an hour in a telephone queue to speak to a human agent.

 

Banks adopting customer-facing AI solutions are in fact seeing increased customer satisfaction rates despite removing the human-to-human contact element. For example, since implementing IPsoft’s AI solution, Amelia, SEB, a leading Nordic bank has been able to avoid 544 hours of escalations to customer support with an average handle time of six minutes. What’s more, Amelia has reached an 85% accuracy in immediate intent recognition which has meant a faster service delivery to customers and soaring customer satisfaction. 

 

24/7 banking support

Unlike human agents, digital assistants can work around the clock, seven days a week with no breaks and without tiring. For modern consumers, particularly young digital natives who expect to be able to manage their finances at any time of the day, integrating AI into a bank’s customer service centre will soon become the norm. Chatbots are already an industry standard, therefore at the very least, banks that don’t continue scaling this technology throughout their business will find themselves at a severe competitive disadvantage, trailing behind the market by delivering an inferior customer service experience.

 

Go beyond simple chatbots

Digital assistants with cognitive intelligence capabilities represent the next leap in automation for financial institutions. Digital colleagues like Amelia are now able to perform tasks above and beyond mere transactional ones, digitising more complex financial management processes such as wealth management onboarding and mortgage applications. Unlike simple chatbots, digital colleagues are also able to develop their cognitive abilities through an advanced Natural Language Interface (NLI) which can process customer queries asked in hundreds of different ways, including slang. More importantly for the banking industry, they can handle context switching so that when a customer moves quickly from one request to another, the interface is able to process both requests without starting over.

 

Many banks have already integrated voice capabilities into their finance management solutions. Customers communicate via text or voice to gain quick answers to banking questions, tailored financial advice and can even carry out transactions all from the same channel. Voice-enabled digital assistants can handle payments and transfers, credit card activation, charge disputes and travel alerts for customers at any time, freeing up customer services teams to focus on more complex customer enquiries and giving customers full control and access to their finances. Conversational AI will become more and more widely accepted as banks start to harness the technology to help drive customer engagement and operational efficiencies.

 

Delivering better insights and improved security

Unlocking key business insights is another key driver motivating banks to invest in AI. Sophisticated systems can recognise patterns from the sheer amount of data that they are processing. Thanks to these capabilities, businesses can easily find out the most common types of transactions by customers of a certain demographic and can then retarget this group for specific marketing or sales campaigns, helping to drive revenue. These real time insights can help business leaders make better, more strategic decisions that are informed through concrete data.

 

Real-time data mining can also be applied to improve customer security as many AI tools have built-in privacy and security by design. An AI-powered virtual assistant can pick up on irregular payments immediately, flagging potential “phishers” to a human agent for additional authentication. What’s more, advanced machine learning solutions can improve over time so that banks can continue to scale up their services. Virtual assistants like Amelia can go one step further by ‘learning on the job.’ Essentially, when Amelia does not understand a request or query she can pass it on to a human colleague but remains in the conversation to learn how to resolve the issue next time.

 

The future of retail banking

The financial services industry has long been at the forefront of technological innovation. Whilst many businesses are still debating whether to invest in AI, major banks are very much leading the way to invest in the technology and are thriving as a result. As virtual assistants become increasingly more intelligent and their cognitive abilities develop, the expectations for banks and the services they offer will be elevated. Banks that rest on their laurels and refuse to acknowledge this risk falling behind permanently, particularly with the slew of challenger fintech companies that are appearing on the market, offering dynamic and tailored financial services at a lower price. 

 

 

Cash ManagementFinanceFunds of FundsHedgeWealth Management

BUY YOURSELF A HORSE WITH BITCOIN

Equinox Racing is a London based horse racing syndicate like no other. Focused on delivering immersive experience to its members, Equinox Racing recently opened its horse’s shares to cryptocurrency. From now on, you can use your Bitcoins to buy yourself the thrill of horse racing and the privilege of horse ownership.

 

Rob Edwards, co-founder of Equinox Racing, commented: “There is a huge amount of capital in the crypto world, and not too many tangible opportunities out there. A lot of the people who invested in crypto, particularly in the early days, are punters. They are our kind of people!” 

 

Equinox Racing believes horse racing should not be limited to the chosen few but made available to enthusiasts and new audiences on a wider scale. Having nine horses and about 100 club members and owners to date, Equinox Racing offers a range of exciting experiences. Visit your horse at the stables, speak with the trainer and the jockey, follow his evolution on social media and support him at the race!

 

D Millard from Norwich, Norfolk (horse owner), commented: “Equinox Racing delivers fantastic days out, real prize money winning opportunities, and its stable of horses just continues to grow.” 

 

For the equivalent of £34,99 per month in crypto, which is the average price for gym memberships, Equinox Racing enables you to be part of something greater than a pair of weights. And ownership is available from £150 pounds (in crypto as well)! Thrill, suspense, joy, grace, excitement, exclusivity, are the words that describe the emotions experienced during a horse race.

 

J MacLeod from Ayr (horse owner) commented: “Simply amazing.  My passion for racing has grown now that I have affordable ownership.  I never thought I would be able to own any part of a horse with such a stunning pedigree.” 

 

Equinox Racing is currently expanding its horse’s portfolio and looking at new acquisitions. It is now the perfect time to get involved!

 

More information on: https://equinox-racing.co.uk

BankingFinanceFundsWealth Management

WisdomTree launches Artificial Intelligence ETF (WTAI)

WisdomTree, the exchange traded fund (“ETF”) and exchange traded product (“ETP”) sponsor, has partnered with Nasdaq and the Consumer Technology Association (CTA) to launch an ETF providing unique exposure to the Artificial Intelligence (AI) sector. The WisdomTree Artificial Intelligence UCITS ETF listed on the London Stock Exchange today, with a total expense ratio (TER) of 0.40%.

 

The ETF will provide investors with liquid and cost-effective access to this exponential technology megatrend that is driving efficiencies and new business capabilities across all industries globally and redefining the way we live and work.

 

Christopher Gannatti, WisdomTree Head of Research in Europe says, “We are delighted to partner with Nasdaq and CTA, who are experts in AI and technology markets. We have worked together, leveraging our combined expertise, to re-define the AI investment landscape.”

 

“To capture the full economic value of AI we place companies in three categories; Engagers, Enablers and Enhancers*. When investors think of what this can bring to a portfolio, they should be thinking over a long time horizon and about how advances like autonomously driven cars, a digital workforce, mass facial recognition and other applications of intelligent machines could change the world,” Gannatti added.

 

Rafi Aviav, WisdomTree Head of Product Development in Europe comments, “AI is a revolutionary technology and the market for AI products and services is expected to more than triple over the next three years[1]. This fund offers a unique approach to capturing this expected growth, which is the result of a year-long collaboration between WisdomTree, Nasdaq and CTA.”

 

“The fund broadly represents the upstream[2] and midstream[3] parts of the AI value chain and so balances diversification with a focused exposure on those parts of the AI value chain that stand to gain the most from growth in the AI market,” Aviav added.

 

There is no commonly used classification system that allows one to automatically choose companies engaged in the emerging AI space, so the research for the selection of index portfolio companies is conducted by experts with deep familiarity of the AI value chain and the technology markets more broadly. This ensures the portfolio remains focused on AI opportunities rather than becoming just another broad tech fund.

 

We believe the fund’s unique approach offers the best of both the active and passive investment worlds in accessing the AI megatrend. The fund’s portfolio companies are already capitalising on the AI opportunity across industries and are well positioned for AI’s growth,” Aviav commented.

 

“AI is one of the key ‘ingredient technologies’ over the next decade – deployed everywhere from factory floors and retail stores to banks and insurance offices, creating new opportunities,” said Jack Cutts, senior director of business intelligence and research, CTA. “We’ll see this play out in January at CES® 2019 – the most influential tech event in the world – where AI will be a dominant theme, showcasing the massive potential AI has to change our lives for the better. We’re excited to partner with Nasdaq and WisdomTree to make AI investible.”

 

“Artificial Intelligence is at an inflection point to drive further economic growth and create new areas of opportunity,” said Dave Gedeon, Vice President and Head of Research and Development for Nasdaq Global Indexes.  “The Nasdaq CTA Artificial Intelligence Index serves as an important benchmark for tracking the adoption of AI across a broad range of economic sectors as this influential technology hastens advancements in productivity and capacity.”

 

WisdomTree Artificial Intelligence UCITS ETF: Under the hood

The WisdomTree Artificial Intelligence UCITS ETF tracks the Nasdaq CTA Artificial Intelligence Index.  This enables investors to gain diversified exposure which is focused on companies that stand to gain the most from growth in AI adoption and performance. The index can evolve as new AI trends and companies come on stream through a semi-annual update. The Index is currently comprised of 52 constituents globally with stringent eligibility criteria:

  • Define Universe: Companies must be listed on a set of recognized global stock exchanges and satisfy minimum liquidity criteria and market capitalization criteria to be included in the index.
  • Identify and Classify: Companies are identified as belonging to the AI value

chain and classified into the following categories: Enhancers, Enables and Engagers (see below for definitions.)

  • Determine AI Exposure: The AI exposure for each individual stock is investigated and scored.
  • Top Selection: Only companies with the top 15 scores in each category (Enhancers, Enablers and Engagers) are selected for inclusion, and their weight is allocated evenly in each category.
  • Allocate Weight: In total Engagers comprise 50% of index exposure, Enablers comprise 40%, and Enhancers comprise 10% of index exposure.

*Engagers: Companies whose focus is providing AI-powered products & services.

Enablers: Companies who are key players in this space, with some of their core products and services enabling AI. They include component manufacturers (including relevant CPUs, GPUs etc.), and platform and algorithm providers that power the development and running of AI processes.

Enhancers: Companies who are a prominent force in AI but whose relevant product or service is not currently a core part of their revenue. They include chip manufacturers, and platform and algorithm providers that power the development and running of AI-powered products & services.

 

Share Class Name

TER

Exchange

Trading Ccy

Exchange Code

ISIN

WisdomTree Artificial Intelligence UCITS ETF – USD Acc

0.40%

 

LSE

USD

WTAI

IE00BDVPNG13

WisdomTree Artificial Intelligence UCITS ETF – USD Acc

0.40%

 

LSE

GBx

INTL

IE00BDVPNG13

ArticlesBankingFinanceFundsMarkets

Finding finance from start-up to listing

Mark Brownridge, Director General of the Enterprise Investment Scheme Association:

Securing funding as a start-up is often one of the biggest challenges that new businesses face in the primary stages of set-up. Not only is it often difficult to secure the funding itself, it is even more so when trying to get the right kind of funding for what the specific needs of the business are. Having structures in place to make it as easy as possible for innovative ideas to flourish and become fully-fledged is not only to the advantage of entrepreneurs and innovators.

 

One of the routes that allows this to happen in the UK is through the Seed Enterprise Investment Scheme, which offers investors tax reliefs in order to offset the higher risks involved in investing capital into start-ups. SEIS represents an alternative to start-ups from traditional finance routes such as banks that may not be willing to lend. This is especially useful for those of the small businesses that base their proposition on intellectual property as opposed to physical assets or products. These IP rich companies often have trouble finding support without physical collateral to offer as security.

 

Individuals looking to invest through SEIS can then make decisions based upon individual cases and potential rather than being held back by regulation or corporate policy. Of course, the risk still exists but with tax and loss reliefs, it is much more likely that the risk will be seen to be worth it in the eyes of an investor. Getting ideas off the ground is arguably the most important part of encouraging new businesses and creating new jobs as they grow and expand.

Luke Davis, CEO and Founder of IW Capital: Growing a business from start-up to listing is a hugely challenging proposition at each and every stage of the process. One of the most important points of this is growing and scaling the business from start-up level into a more fully-fledged entity. This jump can seem daunting for even the most prepared of start-ups and this is in no small part due to the challenges in securing funding for expansion.

Knowledge-intensive SMEs that struggle to secure funding without assets to use as collateral for loans, can benefit from schemes such as SEIS and EIS. With an industrial focus on research and development this will be key moving forward with the Governments plans to grow the tech industry. This is reflected in the increased EIS limit for knowledge-intensive companies of £2 million per year, this change has been introduced to provide further encouragement to investors to support IP-rich businesses.

Clearly supporting SMEs is hugely important for the UK economy as they represent the employment of around 16 million people, depending on who you ask, in the UK with this number currently growing at a rate that is three times faster than for big corporations. Fuelling this growth will be key moving into a post-EU economic landscape that will rely even more heavily on domestic business and job creation.

Jonathan Schneider, Executive Chairman of Capital Step: According to a nationwide study titled – A State of the Nation – The UK Family Business Sector 2017-18- family-run businesses account for 88% of all UK firms. They operate in every industrial sector across all of the UK’s regions, employing almost half of the UK’s private-sector workforce. In no small part, the UK’s family and regional businesses represent a significant proportion of Britain’s bottom line.

Family-run and regional businesses form the life-blood of the UK’s entrepreneurial landscape, and to see so many believe that the Government is not looking after this vital sector of the UK’s business community is concerning. Equally – it is apparent that the funding options available to established family-run enterprise seem to be eclipsed – in local communities – by corporate entities who have greater exposure to the most appropriate funding options. The role of the family enterprise, community SMEs and bricks and mortar productivity across the length and breadth of the British Isles must be considered a firm priority for the UK government – deal or no deal.

As both investors and entrepreneurs, we have witnessed countless examples of business owners having to give up control of their companies in exchange for funding. In many instances, even successful founders end up with a disproportionately small reward for their hard work upon exit as a result of having sacrificed too much ownership and control along the way. The Capital Step model is specifically designed to address this issue, by providing flexible capital solutions without existing shareholders having to give up ownership or independence in exchange.

Jenny Tooth, CEO of the UK Business Angel Association: We as trade bodies, policy makers and commentators bear a significant responsibility to assist UK SMEs in what will be one of the most critical periods in their business life, ensuring contingency plans, scalability options, growth strategies and immediate resilience responses to ensure their successful navigation of the seismic impact of Brexit

The UK possesses multiple geographical regions that have blooming industries outside of the capital city, something which makes the UK incredibly unique. In spite of this, a lack of accessibility to and education surrounding finance and opportunities outside of London is creating a gap between what these regions are capable of and how much they’re utilised. As 63% of all Angel Investors within the UK are based in London and the South East, it is undeniable that there is a geographically skewed funding deficit that is hindering the growth of SMEs who are positioned outside of the capital. While potential investors of differing regional demographics may feel isolated from the investing arena, the repercussions for regional SMEs reliant on this kind of funding may limit innovation and employment growth outside of the capital.
 
The UKBAA has focused a significant amount of attention on increasing regional investment, with the implementation of many angel hubs throughout the UK, especially in Northern regions. However, there is still a long way to go to fully utilise the untapped potential found within these areas. This can only be done when it is popularly recognised that there are significant investment opportunities outside of London. 

ArticlesBankingFinance

Fast growing asset based finance sector presents clear opportunities for challenger banks

Author: Kevin Day, CEO, HPD LendScape

ABF sector is growing fast

Asset Based Finance (ABF) has seen record levels of lending in recent years, with more firms than ever choosing to use this funding option. This trend is a sign of how ABF is increasingly taken seriously as a viable source of finance, which is becoming more widely accepted among businesses. Driving this growth in ABF are the larger, more established banks, but they have been increasingly focusing on large corporates. This provides an opportunity for challenger banks to expand their operations into the mid-market, and although the varying quality of credit among SMEs means it’s an exercise they should do with care, the potential returns are well worth it.

Funding record set last year

Last year set a lending record for the ABF, which largely comprises invoice financing and asset-based lending (ABL), with funding reaching £22.2 billion, an increase of around 5% compared to 2016, itself a previous record. The total number of businesses accessing ABF was 40,333 in 2017, while the number of clients with a turnover of more than £10 million increased to over 5,000, up 7% on last year. In total ABF finance now supports companies with total turnover of around £300bn.

Big banks freeing up the mid-market

Catalysts for the growth of the sector are the big lenders, major banking groups and other established financial institutions. However, a feature of their expansion is that they are moving up the credit scale, with a shift of focus to those companies with a more secure, conservative financial profiles. Many of the big banks are no longer willing, or perhaps even able, given the capital requirements, to lend to small and mid-cap size firms. But the move of these mainstream lenders up the credit quality spectrum has not reduced the needs of SMEs, many of which have limited financing options for common growth challenges, such as the need for investment into new products or moves into new markets.  

Clear opportunity for challenger banks….

Some challenger banks are already active in the ABL sector. For instance, asset finance accounts for over 20% of Aldermore’s lending portfolio, with a further around 4% accounted for by invoice financing. Secure Trust is another challenger that has been building its business in the ABL sector. However, the retreat from providing ABL to SMEs, gives challenger banks an opportunity to target the corporate mid-market and further accelerate their expansion in ABF.

…But they should proceed with care

Although the prospects are promising for challenger banks to boost ABF to SMEs, they should proceed with care. Credit quality is more variable in the mid-market and companies’ revenues, cash flow and costs can be a little more unpredictable as they are more sensitive to changes in market direction or client losses. So challenger banks should be sure that their due diligence and research on businesses looking for ABF is rigorous, including closely examining the credit quality of the accounts receivables, sales concentration and the aging of the accounts receivables.

Private equity-backed businesses offer further potential

Another area challenger banks and other alternative lenders should consider targeting are private equity backed companies. The flexibility that asset-based lending provides to a private equity borrower, such as scalability, works well for acquisitions. Additionally, what ABF can offer which is compelling for those needing finance as well as financial sponsors, such as private equity, is the flexible but limited covenant structure, greater debt capacity, and often a lower price. In the private equity arena, innovative transaction structures involving ABF have the potential to provide sponsors with an alternative to more typical and complex approaches, such as those involving Revolving Credit Facilities.

SMEs seeking to refinance from new lenders

Typically, businesses already using ABF as part of their funding strategy would typically refinance using the same lender. However, in the last few years there has been a trend for borrowers to turn away from their incumbent lenders and explore alternative options, including challenger banks, which can often offer more sophisticated and attractive financing terms. Challenger banks should capitalise on this trend by SMEs to consider a greater variety of re-financing options to further expand their ABF operations.

Technology can play a key role

For both challenger banks and other boutique financial institutions seeking to enter the market, as well as SMEs looking to access ABF, the influx of new technologies is a definite plus. These new technology options mean ABF is increasingly accessible for even the smallest SMEs as increased speed of service allows companies to receive the funds they need quickly due to sophisticated data capture and analysis techniques. For institutions such as challenger banks solutions such as the HPD LendScape® platform help to automate and streamline ABF processes, making it easier for banks to lend and enabling businesses to manage their loans and provide their collateral data for analysis via a single platform, making the process easier to manage for resource-pressed SMEs.

ABF market in the UK is evolving 

ABF is maturing fast in the UK, both in terms of invoice financing and asset based lending and this is likely to continue. An increasing range of companies are seeking to access the funding, while an ever expanding range of lenders is targeting the sector. Challenger banks could play a key role in this trend, with their more innovative, flexible tech-driven approach. With 33% of UK GDP coming from SMEs, if challengers were to significantly expand their ABF finance that would give a considerable funding boost for businesses and a growth uplift for the economy.

 

Website: https://www.hpdsoftware.com/

ArticlesFinanceRisk ManagementWealth Management

IVA or bankruptcy: what is the best solution for your debts?

If you are suffering from severe cash flow issues, you may be considering both bankruptcy or an individual voluntary arrangement (IVA). Bankruptcy and IVAs are both legally-binding and formal insolvency options between you and your creditors. However, while they might appear similar, there are some vast differences to consider before entering into one of the procedures. Most importantly, you should always seek insolvency advice before doing so to ensure you are not impacting your future finances.

 

With that in mind, Business Rescue Expert – a licensed insolvency practitioner firm – is sharing the difference between the two and what you can expect from both insolvency procedures.

 

Choosing an IVA or bankruptcy

Recently, both insolvency procedures have hit the news due to a number of high-profile celebrities suffering cash flow issues. Katie Price is the most recent victim, with her bankruptcy woes documented in the media. However, she is certainly not the only to face cash flow issues, with the total number of individual insolvencies continuing to rise in 2018. The Q2 Insolvency Service report made for particularly tough reading, with the number of individual insolvencies at its highest since Q1 2012. IVAs accounted for 62% of the total, with bankruptcy behind a further 14%.

 

Individual voluntary arrangements were, originally, intended as a better alternative to bankruptcy. IVAs are, generally, considered the more suitable option for those with assets they wish to protect. The procedure is defined as ‘less extreme’ than bankruptcy and also provides moratorium for the individual, with the breathing space helping to regain control of the issue and get to the root cause of the cash flow problems. However, an IVA is a much longer procedure than bankruptcy, and you could be tied up in the process for up to seven years.

 

Bankruptcy, on the other hand, is often considered as it is much shorter than an IVA – typically lasting no longer than 12 months. Unlike an IVA, however, your assets will be forfeit, and that could include your vehicle and house.

 

There are both advantages and disadvantages to each and, if you are not particularly savvy as to those, we suggest seeking advice to ensure you go down the right path.

 

Can the procedures affect my home?

The effect of the procedures on your home is a common cause of worry for many. If you do enter an IVA procedure, you will not be forced to sell your home. However, if it is highly possible that you could be asked to remortgage six months prior to the end of your IVA to free up any capital to repay your debts. This will only ever happen, though, if it is affordable for you. If not, an additional 12 months may be added to your IVA.

 

In the case of bankruptcy, however, your home will likely be affected. If there is any equity tied up in the house, your creditors may ask you to sell to repay their debts. Either way, you should seek advice at the earliest possible opportunity.

 

What about my car?

Another major cause for concern is your vehicle. IVAs ae much longer procedures than bankruptcy and, as such, you are likely to be able to keep your car. The same, unfortunately, cannot be said for bankruptcy, as the sale of your car could offer a large contribution to your debts. However, if you do require your car/van for your trade and rely on the vehicle to make money and repay your debts, you will, likely, be able to keep it. If this is the case, you must speak to your bankruptcy trustee immediately.

 

Could my job be impacted?

When you do enter insolvency or bankruptcy, the details will be made public. While that doesn’t mean a front page story in your local newspaper, your details will be placed on the Insolvency Register. Similarly, a notice will be placed in The Gazette for your creditors to find. If you work in the finance industry or are a director of a company, both procedures can significantly affect your standing.

 

If you file for bankruptcy, you cannot act as a director of a limited company. However, there is no such prohibition with an IVA. But, there is likely to be restrictions on handling client’s funds and some companies may have stipulations in their contracts for hiring those who have entered or are in the procedures.

 

Why choose an IVA?

There are many reasons to choose an IVA – especially as the consequences appear less severe than bankruptcy. The IVA will be completed after no more than seven years and you can then begin building your credit. Whilst you are in the procedure, your creditors cannot make further demands for repayments or take legal action against you for the debts. Similarly, your assets are afforded more protection, with also far less consequences on your future career – particularly if you are hoping to act as a director for a company.

It’s also important to note the disadvantages, however. If you are looking for a short arrangement with your creditors, you must be aware than an IVA can last up to seven years. Your credit rating will also be affected due to the procedure, meaning you will have to work to build your credit report once complete.

 

Why choose bankruptcy?

Filing for bankruptcy does come with advantages, especially for those that are looking to repay their debts quickly. It is completed in around 12 months. However, if there is any evidence of fraud – such as hiding your assets or not detailing all finances – the trustee could apply for a bankruptcy restriction order, meaning you could be deemed bankrupt indefinitely.

 

Similarly, if you don’t have many belongings/assets or equity tied up in your house, bankruptcy could prove a suitable option. Creditors cannot also demand anymore payments while in the procedure.

 

Like an IVA, bankruptcy does have its disadvantages. The procedure will, almost certainly, affect your ability to work in the finance sector and will stop you from acting as director of a company.

 

Ultimately, there are many differences between the two and any advice you can obtain can only help to ensure you choose the correct option.

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BORROWING £50 MORE FOR A CAR LOAN COULD SAVE YOU UP TO £1600 IN INTEREST

Borrowing more for a car loan could save you money, according to research by What Car? 

 

 

Borrowing just £50 more for a new car loan can make it cheaper than taking out a smaller loan according to new research by What Car?, the UK’s leading consumer advice champion.

Analysis of the UK’s leading high street lenders suggests that borrowing the extra amount could save motorists up to £1600 over the course of the repayment period.*

Loans of £5000 typically have lower interest rates than smaller loans. For example, the repayment total of a £5000 loan from TSB over four years comes in around £1300 cheaper than the repayment of a £4950 loan over the same period.

Similarly, at Lloyds the repayment on a £7500 loan over four years is £1601 less than the repayment for borrowing £7450.

What Car? editor Steve Huntingford said: “We would always recommend borrowing as little as possible, but where the loan amount is close to the threshold for a lower interest rate, borrowing as little as £50 extra could save you 10 times that amount, so borrowers should do their homework.”

This trend was most commonly seen when analysing borrowing of amounts between £4500 and £8000.

Research shows that UK motorists are increasingly using finance options to aid with the purchase of cars. Within the first six months of 2018 there was a rise of 8% in car finance lending, with it topping £10 billion.**

However, while taking out a slightly bigger loan can save you money, there is a cut-off point, with loans of more than £8000 costing the borrower more the more they borrow.Savvy shoppers are able to capitalise on these trends by not only borrowing smartly, but by using the What Car? Target Price on What Car? New Car Buying to ensure they get the best deal. 

Car finance top tips: 

Shop around – compare the types of finance available and choose the best option available to you

Don’t stretch yourself – only borrow within your means, making sure you can afford the repayments

Additional charges – be aware of additional charges and always read the small print of your loan to be sure you don’t end up with any nasty surprises

Corporate Finance and M&A/DealsEquityFinanceForeign Direct InvestmentInfrastructure and Project Finance

Mobeus invests £9M in fast-growth customer experience specialists, Ventrica

Ventrica, a European, award-winning, outsourced contact centre, has attracted a £9 million investment from Mobeus Equity Partners. Ventrica provides intelligent, multi-lingual and omni-channel outsourced customer service to a range of global ‘blue-chip’ brands.

“Ventrica is right in the sweet spot for the growing outsourcing contact centre market”

Southend-based Ventrica was founded in 2010 by Dino Forte and has undergone rapid growth, doubling in size over the last two years. Ventrica is an innovation leader in the changing sales and customer service sector. As e-commerce continues to grow, especially in the retail space, and customers expand their communication channels from the phone to email, social media and webchat, companies are increasingly looking to specialists to provide around the clock customer-facing support. Ventrica works closely with its clients, leveraging its people, technology (including support for Artificial Intelligence and Automation) training and resourcing expertise to provide a high quality service, across multiple channels, that supports their brand and their values. 

Ventrica is already one of Essex’s top employers and now plans European expansion

Ventrica is a key employer in Southend and in 2017 the company launched a second site in the town. Employing over 450 staff, and growing to 600 this year, it is one of the town’s major private employers. With support from Mobeus, the company plans further investment to expand its footprint in the UK and Europe to support its growing multi-lingual client base that serve customers across global markets. However the strategy is to remain medium-sized.

Danielle Garland, Mobeus Investment Manager, said, “Ventrica is right in the sweet spot for the growing outsourcing contact centre market – it is large enough to deliver multilingual and leading-edge technology solutions to its blue-chip clients but small enough to be dynamic and innovative and to provide the personalised service its clients require. As more clients onshore back to the UK, Ventrica is very well placed to continue to deliver very strong growth.”

Dino Forte, Ventrica CEO, added, “Mobeus stood out as the right partner because of the team’s immediate enthusiasm for, and deep understanding of, our offering at Ventrica. We have a significant market opportunity and are winning new customer contracts at an increasing rate and of an increasing scale. With Mobeus as a partner, we are well positioned to strengthen our team to support our significant growth whilst also allowing us to better focus on our existing clients which will be our key priority moving forward. 

Mobeus Partner Ashley Broomberg worked with Danielle Garland who sourced and led the transaction on behalf of Mobeus. Guy Blackburn, Mobeus Portfolio Director, has joined the board to support Ventrica in achieving its full potential. Dino Forte was advised by Sarah Moores and Rob Dukelow-Smith (Forward Corporate Finance). 

Finance

Scrutiny on the Data Supply Chain

Scrutiny on the Data Supply Chain

by Martijn Groot, VP of Product Management, Asset Control

The idea of a ‘supply chain’ is most commonly associated with the manufacturing process, however, the concept is now increasingly being applied to the way that financial services firms manage data. While businesses across the financial services space deal with growing volumes of raw data, rather than raw materials, the parallels are striking.

As with any supply chain, being able to trace materials or data across the whole process is very important. In the data supply chain, financial services companies need to understand and to audit what happens to the data across the process, who has looked at it, how it has been verified and they also need to keep a full record of any decisions that are made. Ultimately, they need to ensure traceability, that they can track the journey of any piece of data across the supply chain and see both where it has been and where it finally ends up.   

The benefit for financial services firms who reach the end of this data supply chain is that the result of this process supports informed opinion that in turn drives risk, trading and business decisions. 

Bringing the data together in this way is important for many financial services firms. After all, the reality is that these businesses, today even more than pre-crisis, typically have many functional silos of data in place, a problem made still worse by the preponderance of mergers and acquisitions taking place across the sector in recent times. Typically today, market risk may have its own database, so too credit risk, finance stress testing and product control. In fact, every business line may have its own data set. Moreover, all these different groups will all also have their own take on data quality. 

More and more financial services appreciate that this situation is no longer sustainable. The end to end process outlined above should help to counteract this but why is it happening right now? 

Regulation is certainly a key driver. In recent years, we have seen the advent of the Targeted Review of Internal Models (TRIM) and the Fundamental Review of the Trading Book (FRTB) both of which demand that a consistent data set is in place. It seems likely that the costs and the regulatory repercussions of failing to comply with this will go up over time.

Second, it is becoming increasingly costly to keep all these different silos alive to support it. A lot of these silos are internally developed systems. The staff who originally developed them are often no longer with the business or have a completely different set of priorities, so it makes for a very costly infrastructure. Finally, there is a growing consensus that if a standard data dictionary and vocabulary of terms and conditions are used within the business, and there is common access to the same data set, that will inevitably help to drive a better and more informed decision-making process across the business.


Finding a Way Forward

To address these issues and find a way of overcoming the data challenges outlined above, organisations can begin by ensuring that they have a 360˚ view of all the data that is coming into the organisation. They need to make sure they know exactly what data assets there are in the firm – what they already have on the shelf, what they are buying and what they are collecting or creating internally. In other words, they need to have a comprehensive view of exactly what data enters the organisation, how and when it does and in what shape and form.

Firms need to, therefore, be clearer not only about what data they are collecting internally but also what they are buying. If they have a better understanding of this, they can make more conscious decisions about what they need and what is redundant and prevent a lot of ‘unnecessary noise’ when it comes to improving their data supply chain.

They also need to be able to verify the quality of the data of course – and that effectively means putting in place a data quality framework that encompasses a range of dimensions from completeness to timeliness, accuracy, consistency and traceability.

To deal with all these data supply chain issues, of course, businesses need to have the right governance structure and organisational model in place. Consultants can help here in advising on processes and procedures and ensure for example that the number of individual departments independently sourcing data is reduced and there is a clear view in place of what is fit for purpose data.

The Role of Technology

Technology can play a key role, of course, in helping organisations to get a better handle on their data supply chains. For most businesses, a primary requirement is to have good data sourcing and integration capability in place. This means systems that understand financial data products but also the different data models and schemas that are in place to identify instruments, issuers, taxonomies and financial product categorisations.

The chosen solutions should also be able to quickly and easily move between one set of identifiers and classification schemes to another. Organisations also need the capability to support the workflow process and workflow integration to effectively manage a process whereby users can easily interact with the data either to include their own data in the integration or to check the result of various screening rules that affect the quality of the data.

Businesses also need a data reporting capability. Technology chosen to fulfil this role must be capable of providing metrics on the impact of all the different data sources the organisation has bought, what benefits it has achieved from those sources; what kind of quality are they and what gaps are there in the data, and where is the organisation in providing this data to business users for ad-hoc usage.

Beyond understanding and monitoring their supply chains and ensuring that an auditing and traceability element is in place, financial services businesses must also guarantee that data governance and data quality checking is fully implemented. After all, to get the most from their data supply chains they must make the data itself readily available to users to browse, analyse and support decision-making processes that ultimately contribute to driving business advantage and competitive edge.

TravelPerk
Finance

TravelPerk announces 39m GBP Series C investment

TravelPerk announces 39m GBP Series C investment led by Kinnevik to transform 1 trillion GBP business travel market

TravelPerk, the Barcelona-based startup which has become the fastest growing ‘Software as a Service’ company in Europe, has secured 39 million GBP in Series C funding from some of the world’s most successful technology investors including Kinnevik, Yuri Milner and Tom Stafford. This new funding will enable the firm to expand into new markets and accelerate its dramatic growth towards its ambition to become the world’s leading corporate travel management platform.

According to the Global Business Travel Association, 50% of business travel happens outside of company policy often because existing platforms are outdated, can’t offer the choice or prices of consumer sites, and require travel managers and finance teams to endure multiple platforms, emails and calls back and forth to manage a single trip – costing companies valuable time and money, while frustrating employees and preventing growth.

TravelPerk is solving this problem by simplifying the process for hundreds of thousands of travelers from some of the world’s most influential companies including Uber and Transferwise – cutting the time needed to manage a trip from 3 or 4 hours to just 10 minutes. By streamlining the process, TravelPerk is saving companies more than 20% in annual travel costs.

The company’s unique platform hosts the world’s largest bookable travel inventory, and brings all the necessary tools and resources to manage trips from booking to accounting into one simple, smart, consumer-standard interface. The platform allows travelers to quickly and seamlessly compare, book and invoice cars, trains, flights and hotels from a wide range of major providers including Booking.com, Expedia and Airbnb – with 24/7 support.

TravelPerk CEO Avi Meir said: “We believe business travel should be as simple as personal travel – if not easier. As businesses grow beyond borders, organising trips is one of the most painful and unnecessary obstacles they face to expanding.

“TravelPerk is breaking new ground to propel business travel into the 21st century, disrupting a mammoth and outdated 1.3 trillion USD market – ensuring distance is never a barrier to future growth.”

“We are proud to have the backing of investors with a unique track record of supporting other market disruptors that have transformed entire industries.”

In this latest round, the company is also being supported by existing investors such as Felix Capital, Target Global, Spark Capital, LocalGlobe, Sunstone and Amplo, who back market-changing unicorns including Slack, Trello, Farfetch, Deliveroo and Delivery Hero.

Since being founded in 2015 by CEO Avi Meir and CPO Javier Suarez, TravelPerk has increased revenues by 700% growth year on year, and has now raised nearly 75m USD in total funding.

This new injection of funding will equip TravelPerk to expand into new markets, enlarge its client base by working more with small enterprises and augment its technology offering including integrating travel and expenses management into the platform.

Having tripled the size of its team in the past year, TravelPerk is opening its first office in the UK, and is soon also to build bases in Berlin, Amsterdam and Paris. The UK business travel market was worth 50 billion USD in 2017, and this initial investment will allow TravelPerk to simplify travel for customers such as Aesop, Bowers & Wilkins, Adyen and Farfetch.

Chris Bischoff, Senior Investment Director at Kinnevik, said: “We are excited to invest in TravelPerk, a company that fits perfectly into our investment thesis of using technology to offer customers more and much better choice. Booking corporate travel is unnecessarily time-consuming, expensive and burdensome compared to leisure travel. Avi and team have capitalised on this opportunity to build the leading European challenger by focusing on a product-led solution, and we look forward to supporting their future growth.”

financial terms
Finance

Learning the lingo

Learning the lingo: understanding financial terms

A study by the Organisation for Economic Cooperation and Development (OECD), has revealed that only 38% of adults understand know what is meant by the term ‘inflation’. This has led to True Potential Investor creating this useful jargon buster to help us get to grips with the key terms and improve our financial understanding:

Capital
Simply put, capital is another word used for any initial funds that are invested.

Bonds
Companies who need to raise funds to meet a set goal can choose to issue corporate bonds that investors can then buy. The money raised from the investment is held for an agreed number of years. At the end — also known as bond maturity — the investor receives the money they invested plus their guaranteed interest which was agreed at the start.
The government also offers government bonds or ‘gilts’ which work in a similar way to corporate bonds and are used to fund borrowing.

Capital gains tax
This is the tax that is paid on profit that is made on certain types of investment — your ‘capital gain’. You may not need to pay capital gains tax — it depends on the amount of profit you make and whether you use the profit to buy new shares. More information can be found on the GOV.UK website.

Diversification
The process of investing across multiple areas and not just focusing on one is called diversification. For example, you can diversify your investment across a range of investment types — such as shares or bonds, for example — as well as between industries, currencies and countries.
Diversification of your investments could help you to manage the risk and reduces the impact of market uncertainty.

FTSE
The Financial Times Stock Exchange (FTSE) is used to monitor how companies or indices trading on the London Stock Exchange are performing. A number of lists are available, with each showing the fluctuations in share prices over time.

ISA
Individual Savings Accounts — or ISAs — offer a tax-free or tax-efficient option in which to save. There are two main types of ISAs: cash ISAs and stocks and shares ISAs.
• Cash ISAs — like a typical savings account, cash ISAs do not require you to pay tax on any interest that is generated.
• Stocks & shares ISAs — with a stocks and shares ISA, the money is invested with the aim of growing the fund over time. You do not pay tax on dividends.

Inflation
This term describes the amount of money in which goods and services increases over a timeframe. It is measured as an annual percentage change and can impact interest rates and share prices.

Pensions
Pensions are set up to help you put money aside for your latter years. The money you place in the pension fund is invested with the aim of growing it by the time you retire.

There are three main types of pensions:

• Workplace pensions — this type of pension is arranged through your employer. Usually, you’ll contribute an amount each month, with your employer also contributing and the government contributing tax relief too.

Personal pensions — a pension you arrange yourself, which you can contribute to whenever you want.

• State pensions — a state pension is the amount you receive from the government once you reach State Pension age. Details on how much this is and eligibility can be found at the GOV.UK website.

Stocks & shares
Investors can buy stocks in a company. However, these stocks can be broken down into a number of shares, which can also be purchased by investors. Because of this similarity, the two terms are often interchangeable.

The aim with stocks and shares is to sell them on for a greater price than you originally paid. Usually, stock and shareholders receive a proportion of the company’s profits on an annual or bi-annual basis in the form of dividends.

Yield
This term describes the performance of your investment both now and in the future. For example, if you received £5 in interest from £100 placed in a Cash ISA, your total yield would be 5% which is equal to £5.

Cryptocurrency
Finance

Why Cryptocurrency Will Define How We Do Business

3 reasons cryptocurrency is likely to be ‘the future of commerce’

I would rather see the SEC make a methodical decision, with thoughtful guidelines, to approve a cryptocurrency ETF than a rash decision to reject one. And though the agency may not reach a final decision until next year on the proposed SolidX Bitcoin Shares ETF, I think the agency will eventually approve it. The proposal (requiring a minimum investment of 25 bitcoins, or $165,000, assuming a BTC price of $6,500) seems to meet the SEC’s criteria — on valuation, liquidity, fraud protection/custody, and potential manipulation.

Cryptocurrency’s Challenges and Potential
Since 2010, when it emerged as the first legitimate cryptocurrency, bitcoin has been declared “dead” by pundits over 300 times. Critics have cited the cryptocurrency’s hair-raising price volatility, it’s scalability challenges, or the improbability of a central bank ceding monetary control to a piece of pre-set software code. Yet since 2009, bitcoin has facilitated over 300 million consumer payment transactions, while hundreds of other cryptocurrencies have emerged, promising to disrupt a host of industries. Granted, no more than 3.5% of households worldwide have adopted cryptocurrency as a payment method. But I think cryptocurrency will transform how the world does business as developers, regulators, and demographics resolve the following key issues:

1. Approval of a Bitcoin ETF
I think the US investment community will not rest until they satisfy SEC criteria for a bitcoin ETF. Approval would represent another milestone in the validation of cryptocurrencies. This bodes well for the global financial system, because cryptocurrency promises to create financial savings and societal benefits — by streamlining how the world transacts for goods and services, updates mutual ledgers, executes contracts, and accesses records.

2. Comprehensive U.S. Regulation Can Improve Protection, Innovation, and Investment
Demand is mounting for a larger, more comprehensive U.S. and global regulatory framework that protects consumers and nurtures innovation. Those institutional investors who are assessing the cryptocurrency risk/reward proposition are also awaiting regulatory guidance and protections to honor their fiduciary duties. How, if at all, for example, will exchanges be required to implement systems and procedures to prevent hacks and protect or compensate investors from them?

Effective cryptocurrency regulation requires a nuanced set of rules, a sophisticated arsenal of policing tools, sound protocols, and well-trained professionals. I think U.S. regulators will eventually get it right. And if institutions become more confident that regulations can help them meet fiduciary duties, even small cryptocurrency allocations from reputable organizations could unleash a new wave of investment.

3. Bringing the Technology to Scale
Bitcoin and other cryptocurrencies cannot yet process tens of thousands of transactions per second. I think developers working on technology — such as Plasma, built on Ethereum, and the Lightning Network, for bitcoin and other cryptocurrencies — will sooner or later bring leading cryptocurrencies to scale. This could unleash an explosion of new applications, allowing cryptocurrency to integrate with debit and credit payment systems, developing new efficiencies in commerce — whether B2B, B2C, or B2G — in ways we can’t fully anticipate.

4. Developing World Incentives and Demographics
Cryptocurrency adoption as a payment method could grow fastest in emerging markets. Many consumers and entrepreneurs in such regions have a strong incentive to transact in cryptocurrency — either because their country’s current banking payment system is inefficient and unreliable, and/or they are one of the world’s 1.7 billion “unbanked.” Two-thirds of the unbanked own a mobile phone, which could help them use cryptocurrency to transact, and access other blockchain-based financial services.

Data underscores the receptiveness of Developing World consumers to cryptocurrency. The Asia Pacific region has the highest proportion of global users of cryptocurrency as a transaction medium (38%), followed by Europe (27%), North America (17%), Latin America (14%), and Africa/The Middle East (4%), according to a University of Cambridge estimate. Although the study’s authors caution that their figures may underestimate North American cryptocurrency usage, they cite additional data suggesting that cryptocurrency transaction volume is growing disproportionately in developing regions, especially in:
● Asia (China, India, Malaysia, Thailand)
● Latin America (Brazil, Chile, Colombia, Mexico, Venezuela),
● Africa/The Middle East (Kenya, Saudi Arabia, Tanzania, Turkey)
● Eastern Europe (Russia, Ukraine).

Demographics will also likely drive cryptocurrency adoption in the Developing World, home to 90% of the global population under age 30.

Remember The Internet – Investment Bubbles and Bursts Will Identify The Winners
High volatility is inherent in the investment value of this nascent technology, due to factors including technological setbacks and breakthroughs, the impact of pundits, the uneven pace of adoption, and regulatory uncertainty. Bitcoin, for example, generated a four-year annualized return as of January 31st 2018 up 393.8%, a one-year 2017 performance up 1,318% — and year-to-date, a return of down over 50%. Bitcoin has previously experienced even larger percentage drops before resuming an upward trajectory.

In my view, bitcoin and other cryptocurrencies will experience many more bubbles and bursts, in part, fueled by speculators. But the bursting of an investment bubble may signal both a crash and the dawn of a new era. While irrational investments in internet technology in the 1990’s fueled the dotcom bust, some well-run companies survived and led the next phase of the internet revolution. Similarly, I believe a small group of cryptocurrencies and other blockchain applications, including bitcoin, will become integrated into our daily lives, both behind the scenes and in daily commerce.

Although “irrational exuberance” will continue to impact the price of cryptocurrencies, this disruptive technology represents not only the future of money, but of how the world will do business.

Javed Khattak
Finance

A Harbinger of Global Financial Change

A Harbinger of Global Financial Change

Javed Khattak is, among many roles, the Chief Financial Officer for Humaniq, a fintech firm that aims to be the herald of the next generation of financial services. In July, Javed was named as the CFO of the Year for 2018 by Wealth & Finance International Magazine. Following this, we spoke with Javed to find out how he achieved the extraordinary success he celebrates today.

Block Chain

Javed Khattak is a qualified actuary, as a Fellow of the Institute of Actuaries in the UK, and an expert in finance, strategy, risk, investments, technology and start-ups. As a FTSE100 advisor, he is a recognised expert and a strong proponent of blockchain technologies, seeing them as the inevitable next step in the corporate and professional landscapes.

It is, however, his role as CFO of Humaniq that brought him to Wealth & Finance’s attention. Javed starts the interview by outlining the importance of the work he is doing at the firm, “Amongst other roles, I am the CFO of Humaniq, this role has been my primary focus over the last year. Humaniq is a financial inclusion project that, through use of technology in namely blockchain and biometric ID, aims to bring financial services to the unbanked population of the world and has successfully launched in several African countries.”

Perhaps a crucial element to Javed’s work is his advocacy for blockchain technologies, believing them to be the ‘next big thing’; a revolutionary development for innumerable sectors and fields. “Humaniq, and many other innovative ventures, are able to come into existence thanks to this technology. This is in two ways; blockchain first made the initial funding for these companies possible through ICO’s, and alongside blockchain also provides these ventures with the tools and technology to execute their novel ideas and make them a reality.” Through effective utilisation of the technology, Javed sees limitless possibilities with most sectors benefitting from it, including technology, financial services and real estate industries, alongside transforming supply chains and empowering end users (e.g. through control of their personal data).

However, Javed admits that blockchain is becoming stigmatised due to false parties adopting the name to make money quickly; this is a frequent occurrence with an exciting emerging technology but seems to be amplified in the case of blockchain and cryptocurrency. “Blockchain has become a buzz-word which is also attracting the wrong players who are using the opportunity to create outright scams and frauds. We have all seen the various non-blockchain businesses changing their trading names to add the magic word and see their stock prices rise. I believe this will all fade away once the regulators catch up and alongside the non-sophisticated ICO investors or contributors get burnt. Though amongst the noise, there are genuine players of course.”

“Fundamentally, I see blockchain as an enabler. It is still early in the technology’s lifecycle, but once the technology matures, it can and will revolutionise lives. I hope that the blockchain will do what the internet did for information and prove to be the empowering tool that helps decentralise the world’s wealth and resources.”

Javed’s work at Humaniq is only one part of his current workload; he is also the Co-founder and Chief Executive Officer of two companies, Zisk Properties and JKCoach. Javed takes a moment to talk us through his history with them, “I founded Zisk Properties in 2014. Zisk is an innovative property investment business, focusing on providing investment options to people with insufficient savings or a lack of financial understanding to have a more secure future and even get on the property ladder through small steps. It already has a lot of traction, with hundreds of customers and managed to significantly outperform property markets with a weighted average return of just under 20% p.a. since its inception. Having successfully received our UK FCA registration recently, we are in the process of launching in the UK and are already in discussions to launch in UAE by end of 2018.”

“JKCoach was founded several years ago, and is an educational institute that provides coaching, tuitions and diplomas to Pakistani students with the aim to raise the education standards. By end of 2018, we will have over 500 students, with an ambition to expand into the rest of Pakistan and to be able to offer free but quality education to children from families below the poverty line in 2019.”

As you can imagine, being on the executive team of three companies results in a hectic work schedule. For Javed, this is just par for the course, “Busy probably would be an understatement. I am involved in most aspects of the ventures I am leading. Fortunately, having a great team that I can rely on helps a lot. For me, there is no average workday, as each one is very different to the previous one – the only thing that is constant is the number of hours that I am working each day!”

“What I do on any particular day depends on the ongoing projects and work-streams. Example; the past month I have been travelling significantly to speak at or be a panellist at conferences, lead a fundraising round, interviewing and hiring for new roles and spending time with our dev guys for launch of Zisk’s new web platform.”

Javed continues, bringing the interview to an optimistic close; “I am a firm believer in giving back to society – this is why I was initially attracted to Humaniq and precisely why I started Zisk Properties and JKCoach.

“In addition to this, I love technology because either a smartphone or a tablet has become a companion as information is instantly available. Financial services, like money transfers, are more accessible and cheaper. Medical advancements mean a better quality of life and improved longevity for those affected with disease or involved in accidents, and so on. As such, let us all work together to leave a part of us behind through our creativity, fostering new technologies, and not being afraid of challenges – all the while remembering to share happiness, be kind and forgiving to humanity as well as all that is around us.”

Company Details 

Name: Javed Khattak

Web Address: www.linkedin.com/in/javedkhattak

Roles:

CFO of Humaniq

Co-founder & CEO of Zisk Properties

Co-founder & CEO of JKCoach

Investment Director at Stratamis

marketing roi
Finance

ROI from marketing across various sectors

How ROI Can Vary Across Different Sectors

£115.9 million went towards direct mail marketing and online platforms in the UK automotive industry in 2016. That’s according to figures from Google’s Car Purchasing UK Report from April 2017. Of course, the car industry has a massive budget at their disposal when it comes to marketing, one that not all industries can match. Plus, with so many people vying for a digital presence, the cost of online marketing is rising. Is it really worth the cost? Audi servicing plan providers, Vindis, explores the matter across many sectors.

Automotive industry
Car shoppers are heading more and more to the online world than ever before, according to Google’s Drive To Decide Report. Over 82% of the UK population aged 18 and over have access to the internet for personal reasons, 85% use smartphones, and 65% choose a smartphone as their preferred device to access the internet. These figures show that for car dealers to keep their head in the game, a digital transition is vital.

The report also showed that 90% of car shoppers researched online before buying. 51% of buyers start their auto research online, with 41% of those using a search engine. To capture those shoppers beginning their research online, car dealers must think in terms of the customer’s micro moments of influence, which could include online display ads – one marketing method that currently occupies a significant proportion of car dealers’ marketing budgets.

In fact, 11% of the total UK Digital Ad Spending Growth in 2017 was from the car industry, according to eMarketer, which puts the industry second only to retail. The automotive industry is forecast to see a further 9.5% increase in ad spending in 2018.

But is online really impacted a buyer’s choices? 41% of shoppers who research online find their smartphone research ‘very valuable’. 60% said they were influenced by what they saw in the media, of which 22% were influenced by marketing promotions – proving online investment is working. But traditional methods of TV and radio still remain the most invested forms of marketing for the automotive sector. However, in the last past five years, it is digital that has made the biggest jump from fifth most popular method to third, seeing an increase of 10.6% in expenditure.

Fashion industry
Fashion retailers need to keep an eye on online investments, as the online world is strong for the fashion industry – ecommerce accounted for £16.2 billion in sales for the sector in 2017. This figure is expected to continue to grow by a huge 79% by 2022. So where are fashion retailers investing their marketing budgets? Has online marketing become a priority?

The British Retail Consortium stated that ecommerce made up nearly 75% of all purchases for December 2017. Online brands such as ASOS and Boohoo continue to embrace the online shopping phenomenon. ASOS experienced an 18% UK sales growth in the final four months of 2017, whilst Boohoo saw a 31% increase in sales throughout the same period.

Brands like John Lewis, Next, and Marks and Spencer have set aside millions towards their online presence, in order to make the most of the rise of online shopping. John Lewis announced that 40% of its Christmas sales came from online shoppers, and whilst Next struggled to keep up with the sales growth of its competitors, it has announced it will invest £10 million into its online marketing and operations.

People don’t enjoy the idea of wandering the high street anymore. Instead they like the idea of being able to conveniently shop from the comfort of their home, or via their smartphone devices whilst on the move.

Influencers are becoming a big thing for fashion marketing too; PMYB Influencer Marketing Agency noted that 59% of marketers for the fashion world ramped up their spend for influencers last year. In fact, 75% of global fashion brands collaborate with social media influencers as part of their marketing strategy. More than a third of marketers believe influencer marketing to be more successful than traditional methods of advertising in 2017 – as 22% of customers are said to be acquired through influencer marketing.

Utilities industry
Comparison websites are an important part of picking utilities suppliers for customers, so gaining and retaining customers falls on those websites. With comparison websites spending millions on TV marketing campaigns that are watched by the masses, it has become vital for many utility suppliers to be listed on comparison websites and offer a very competitive price, in order to stay in the game.

Compare the Market, MoneySupermarket, Confused.com, and Go Compare make up the largest comparison sites as well as being in the top 100 highest advertising spenders in the UK. Comparison sites can be the difference between a high rate of customer retention for one supplier and a high rate of customer acquisition for another. If you don’t beat your competitors, then what is to stop your existing and potential new customers choosing your competitors over you?

One of the Big Six energy suppliers, British Gas, has changed its main focus from new customer to retaining customers. Whilst the company recognise that this approach to marketing will be a slower process to yield measurable results, they firmly believe that retention will in turn lead to acquisition. The Gas company hope that by marketing a wider range of tailored products and services to their existing customers, they will be able to improve customer retention.

This priority change is reflected in British Gas’s decision to invest £100 million into their customer loyalty scheme, to reward those who stay with them. The utilities sector is incredibly competitive, so it is vital that companies invest in their existing customers before looking for new customers.

Google’s Public Utilities Report in December 2017 showed how the utilities sector has strengthened online, with 40% of all searches occurring on mobile, and 45% of ad impressions delivered on mobile. As mobile usage continues to soar, companies need to consider content created specifically for mobile users as they account for a large proportion of the market now.

Healthcare industry
Marketing in the healthcare industry is a far cry from any other sector in terms of restrictions. The same ROI methods that have been adopted by other sectors simply don’t work for the healthcare market. Despite nearly 74% of all healthcare marketing emails remaining unopened, you’ll be surprised to learn that email marketing is essential for the healthcare industry’s marketing strategy.

Around 2.5 million people have email as their main communication method, and the number is rising. This means email marketing is targeting a large audience. For this reason, 62% of physicians and other healthcare providers prefer communication via email – and now that smartphone devices allow users to check their emails on their device, email marketing puts companies at the fingertips of their audience.

With one in 20 Google searches being for health content, it’s definitely worth the investment of the healthcare industry to be online. This could be attributed to the fact that many people turn to a search engine for medical answer before calling the GP. In relation to this, Pew Research Center data shows 77% of all health enquiries begin at a search engine – and 72% of total internet users say they’ve looked online for health information within the past year. Furthermore, 52% of smartphone users have used their device to look up the medical information they require. Statistics estimate that marketing spend for online marketing accounts for 35% of the overall budget.

And that’s without considering social media marketing. Whilst the healthcare industry is restricted to how they market their services and products, that doesn’t mean social media should be neglected. In fact, an effective social media campaign could be a crucial investment for organisations, with 41% of people choosing a healthcare provider based on their social media reputation! And the reason? The success of social campaigns is usually attributed to the fact audiences can engage with the content on familiar platforms.

Should you invest?
Online marketing is clearly vital for many sectors, particularly for fashion and car sales. With a clear increase in online demand in both sectors that is changing the purchase process, some game players could find themselves out of the game before it has even begun if they neglect digital.

There’s a lot more to consider, particularly for utilities. Whilst TV and digital appear to remain the main sales driving forces, its more than just creating your own marketing campaign when comparison sites need to be considered. Without the correct marketing, advertising or listing on comparison sites, you could fall behind.

The average firm in 2018 is set to put an estimated 41% of their marketing budget towards online strategies, and this is expected to rise to 45% by 2020, says webstrategies.com. Social media advertising investments is expected to represent 25% of total online spending and search engine banner ads are also expected to grow significantly too – all presumably as a result of more mobile and online usage.

How do you view the investment? If mobile and online usage continues to grow year on year at the rate it has done in the past few years, we forecast the investment to be not only worthwhile but essential.

Sources
https://pmyb.co.uk/global-fashion-company-influencer-marketing-budget/
https://www.prnewswire.com/news-releases/the-uk-clothing-market-2017-2022-300483862.html
http://uk.fashionnetwork.com/news/Online-is-key-focus-for-UK-fashion-retail-investment-in-2017,783787.html#.WrOjxOjFKUk
http://www.mobyaffiliates.com/blog/retail-accounts-for-14-2-of-digital-advertising-spending-in-the-uk-in-2017/
http://www.thisismoney.co.uk/money/bills/article-2933401/Energy-price-comparison-sites-spend-110m-annoying-adverts.html
http://www.thedrum.com/news/2017/03/28/british-gas-shifts-acquisition-retention-marketing-know-the-value-keeping-the-right
https://www.independent.co.uk/news/business/news/uk-companies-online-advertising-spend-10-billion-more-last-year-2016-pwc-a7678536.html
https://www.webstrategiesinc.com/blog/how-much-budget-for-online-marketing-in-2014
https://www.kunocreative.com/blog/healthcare-email-marketing
http://www.evariant.com/blog/10-campaign-best-practices-for-healthcare-marketers
https://getreferralmd.com/2015/02/7-medical-marketing-and-dental-media-strategies-that-really-work/

Social impact
Sustainable Finance

Younger Entrepreneurs Choose Social Impact As Their Top Business Priority

A new wave of global entrepreneurs are setting up their businesses with the aim of making a positive impact on society, according to a new report from HSBC Private Banking. The Essence of Enterprise report found that the younger generation of entrepreneurs are leading this trend, with 24% of entrepreneurs aged under 35 motivated by social impact compared to 11% of those aged over 55. The report, now in its third year, is one of the largest, in-depth studies into the motivations and ambitions of entrepreneurs, researching the views of over 3,700 successful entrepreneurs in eleven countries. The report also found that this new generation of entrepreneurs is embracing angel investing, viewing it as a way to connect and collaborate with their peers.

A socially minded brand of entrepreneurship

One in five entrepreneurs considers social responsibility, being active in the community, or environmental responsibility as their top priority as a business owner, rather than prioritising areas such as maximising shareholder value or economic prosperity. Those who prioritise social impact have a greater propensity to engage in angel investing, (55% of impact-focused entrepreneurs versus 44% of entrepreneurs who prioritise commercial factors), and report a stronger willingness to rely on mentors for advice and support (75% of impact-focused entrepreneurs versus 66%).

The report also suggests a strong relationship between an emphasis on social impact and entrepreneurial ambition. 33% of the entrepreneurs projecting high growth ambitions state that they started their ventures with the intention of creating positive social impact, compared to 28% of those projecting the lowest growth. This suggests social impact should be seen as an integral part of the recipe of entrepreneurial success, and not separate from it.

A new investment style

Almost half of respondents (47%) have invested in other private, non-listed businesses, funnelling both capital and expertise back to the entrepreneurial community. However, the research reveals that a new younger generation of entrepreneurs is investing at a much higher rate than their older peers, with 57% of entrepreneurs under 35 undertaking angel investing compared to 29% of entrepreneurs aged over 55.

Differences also exist between the generations in how they perceive and approach angel investing. Over half of younger entrepreneurs (57%) view angel investing as a way to connect and collaborate with peers, staying up to date with industry progress and disrupters and to grow their knowledge and expertise.  Entrepreneurs of an older generation view angel investing as a way to diversify and grow their investment portfolio, approaching angel investing in a more informal style, through their own network of personal contacts. 43% of those over 55 view friends as the best route to new business, while 44% of those under 35 turn instead to professional advisers to source new investment opportunities.

HSBC Private Banking Global Chief Investment Officer Stuart Parkinson said: ‘It’s clear younger entrepreneurs want to do good, and we would be wrong to dismiss this as youthful idealism that will act as a brake on financial success.  They know that their business cannot have the impact they want without sustainable growth, and they are focussed on achieving both. They see a similar virtuous circle when it comes to angel investing; they are happy to invest in the wider business community, to contribute to each other’s successes and to learn from one another.”

Differing approaches across the globe

The report also brings to light the differences in the entrepreneurial mind-set in markets around the globe. Entrepreneurs in the Middle East (66%) are the most active angel investors, with the US (54%) and Mainland China (53%) next in line. By contrast, 45% of UK entrepreneurs are angel investors, along with 35% in Germany and 33% in Switzerland.

Regional traditions have paved the way for different approaches to angel investing between these markets. In the US, angel investing is highly professionalised; investors source new opportunities through formal channels, such as financial or professional advisors. In comparison, entrepreneurs in the Middle East source new opportunities informally, mainly through friends (Use financial advisors US 51%, Middle East 38%) (Use friends US 45%, Middle East 53%) They also perceive their role to be supportive, cultivating business development and leadership skills. In the US, entrepreneurs view their role as a challenger, optimising the performance of the management team by challenging their thinking and strategy.

In Europe, investors are more likely than those in other regions to perceive angel investing as a way to grow and diversify their portfolio, rather than as a way to build their network and share expertise.

In relation to social impact, entrepreneurs in the US and China show a greater emphasis on environmental concerns – 8.1/10 prioritise environmental issues in their business planning compared with 6.7/10 in the UK, Singapore, Switzerland and Australia. When asked about their desire to contribute to communities, entrepreneurs from the Saudi Arabia (64%) and UAE (62%) are most likely to reference being active in the community and civil society as important to their business operations compared to the global average of 44%.

Bowmark Capital
Corporate Finance and M&A/Deals

Bowmark Capital backs buy-out of leading alternative legal services provider

“This is all about access to capital for our next stage of growth,” comments LOD CEO Tom Hartley. “We have been exploring alternative options since the summer of 2017 following our successful merger with AdventBalance in Asia and Australia in 2016.”

Neville Eisenberg, BCLP Partner responsible for LOD, said: “BCLP is extremely proud to have been a pioneer in the alternative legal services market. Nurturing the creation of LOD over 10 years ago, and supporting its growth and considerable influence over the legal market as a high quality provider of flexible legal services, has been an extraordinary journey for us all. We believe that LOD is ideally placed for further growth and that this new investment by Bowmark will help facilitate LOD’s ambitious plans. BCLP has committed to remain close to LOD, partnering with the business for its flexible lawyer needs and we look forward to seeing the results of this exciting new chapter in LOD’s development.”

Bowmark Managing Partner Charles Ind said: “We have been tracking the alternative legal services sector for a number of years and are delighted to have the opportunity to become the principal shareholder in LOD and support the whole LOD team as they build on the impressive growth they have achieved to date.”

Hartley adds, “BCLP has been a great owner, client and partner and this is the logical next step for us to take. LOD has already been a separate entity from BCLP for the last six years, during which time we’ve seen excellent growth.  We want to maintain that expansion by continuing to add new service lines, geographies and technology to our existing offering for our lawyers, consultants and clients. LOD is now in the perfect position to continue to lead the alternative legal services market supported by the capital and expertise of Bowmark.”