Powa Technologies, A Unicorn In Trouble

The Lion and the Uncorn

Powa Technologies, a British 'unicorn' company valued at £1.8billion, was forced into administration on Friday afternoon, after, astonishingly, it ran out of money. We understand that investors withdrew funds after the Financial Times reported that the mobile commerce company had been struggling to pay its staff and suppliers and had only $250,000 in the bank.

Powa has never raised money via crowdfunding. All its investment rounds have been done in the mainstream of finance. But we're covering the story here because we've read such negative press about crowdunding and failure in the last week or two, and we want our readers to be able to make a relevant comparison.  

Now Peer-To-Peer Really Can Be Alternative

This morning's Financial Times suggests that the time has come for peer-to-peer lending to shed the word 'alternative' and admit that it is thoroughly mainstream. The FT clearly doesn't share our understanding of the word, or the way that finance has developed in the last two years.

dictionary definition of alternative

We agree with the writer, Emma Dunkley, when she says that when Zopa launched in 2005, nobody saw what was coming.

Departing DG leaves EISA in good shape

Sarah Wadham, the Director General of the Enterprise Investment Scheme Association (EISA) has announced she will be stepping down at the end of March.  She will remain a director on the board of the not-for-profit association.

EIS Association logo

EISA is the official trade body for firms which aid the provision of capital to UK small and medium-sized enterprises (SMEs) through the Enterprise Investment Scheme (EIS) and its younger sibliing, the Seed Enterprise Investment Scheme (SEIS).  

IFISA Launch: A race, or an obstacle course?

The Financial Times imagines peer-to-peer lenders in a race against time to get their IFISA offerings ready for the 6th April launch; but the more we go into the details, the more it looks like they are crawling through an obstacle course. 

soldier crawls through sand under barbed wire

The Innovative Finance Individual Savings Account (IFISA), which will be available from the start of the new tax year, is widely expected to accelerate the adoption of peer-to-peer lending in the UK. For the first time, investors will be allowed to put money in P2P loans tax-free through a new version of the highly popular Individual Savings Account (ISA) Money&Co. calls it 'a boon for individuals and crowdfunders alike.'

Don't Suffer Like A Fool

Another Crowd makes a point of not telling our readers what to think. We'd much rather help you to think for yourselves, and besides,  giving advice is a regulated activity. 

Marx Reichlich, A Jester, ca. 1519-20; tempera on panel.

Source: Wikimedia Commons

Nothing on Another Crowd is intended for trading purposes or to address your particular financial or other requirements. As long as you understand that, we'd like to share some wise words from a seventeenth century mystic.