Merger will result in the largest robo-advisor in marketplace lending; the companies will operate separately for now but the company aims to take the best of both platforms; the funds offered will be streamlined with the LendingRobot Series fund being the focus going forward; Bo Brustkern, co-founder and CEO of NSR Invest, will be leading the new entity with Emmanuel Marot, co-founder and CEO of LendingRobot, acting as a special advisor; the new entity will have $150 million in assets under management with over 8,000 clients. Source
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The Federal Reserve has released a report titled "Small Business Credit Survey Report on Startup Firms" with findings based on the 2016 Small Business Credit Survey which surveyed companies less than five years old with more than one and fewer than 500 employees; findings show that these companies face greater funding challenges than mature companies; report compares financing statistics of startups and mature companies; also reports on sources of funds noting that medium to high credit risk startups were more likely to apply for loans from online lenders and only 11% of low credit risk startups sought online loan financing. Source
There is a worldwide problem in that not enough people have access to financial opportunity in underserved markets; at LendIt USA 2017 we hosted a panel that focused on impact investing and opportunities for the underserved in financial services; panelists discussed the size of the market, how technology has helped to close the gap and why they feel that investing with their hearts and wallets is the better way to go; the discussion talked through the difference between regular investing and impact investing, as well as what investors look for when an opportunity presents itself; technology has allowed for low to middle income families to have a better understanding of their daily financial health and to expect better services; the panel also touched on the risks involved in certain markets, how to assess potential investments in emerging markets and how the local regulatory bodies can play a role; looking at investments beyond the financial return has helped communities around the world and this looks to be a trend that is on the rise. Source
Rachel Schneider discusses a new way of thinking about the financial lives of Americans; suggests that many of the models are out of date; Schneider worked with a research project called US Financial Diaries which worked with 235 families to learn about every dollar that they spent, borrowed, saved, earned, and more; through the research they understood these families on a much deeper level to understand the 'why' behind financial decisions; Schneider shares many interesting data points including income and spending spikes in the lives of Americans; highlights the opportunities for fintech companies in the US. Source