LENDING CLUB IPO QUIET PERIOD CONCLUDES

Renaud Laplanche, Carrtie DolanOn January 5, 2015, the 25-day quiet period concluded regarding the Lending Club IPO, one of the leading marketplace lenders in the U.S. This means that those responsible for underwriting the securities may start publishing their analysis of the company starting today. The underwriters include many top banks, including Morgan Stanley, Goldman Sachs, Credit Suisse, Citigroup, BMO Capital and Wells Fargo.

The Lending Club offering was well received by the market, including a spike of approximately 65% over its initial offering price of $15, which was already at the high end of its expected share price. The stock has traded as high as $29.29, with an end-of-day closing high of $27.90. The stock opened today at $24.15, and any insight that can be gleaned from the underwriters is expected to have an impact on the stock.

Although Lending Club is one of the leading marketplace-lending platforms, its IPO and ensuing stock market growth provides validation to an area of alternative finance that many see as a niche industry. An online marketplace-lending intermediary such as Lending Club has many advantages over traditional banks. They are able to utilize technology in order to both reduce operational costs and inefficiencies as well as more proficiently connect the supply and demand of the lending market through automated processes.

The firm originally operated exclusively in the peer-to-peer lending space, but has subsequently expanded to include small businesses as the recipient of loans funded through marketplace lending. The market for these loans continues to grow, especially as borrowers are unable to secure loans from banks, which have a limited ability to lend under increased regulatory restrictions. In its SEC filings, Lending Club reported that since its inception in 2007, it has origination in excess of $6 billion in loans, with $1.2 billion of this in the third quarter of 2014.

With the success of Lending Club’s IPO represented by the market’s positive response to the company, marketplace lending has taken another step forward to become a more established, viable form of alternative finance lending. Lending Club is not alone in this industry, with many, well-known marketplace-lending competitors also seeing an increasing numbers of borrowers. This coupled with investor enthusiasm showing few signs of abating, this new, technologically-adept form of linking borrowers and investors with attractive rates appears to have well-positioned itself to see an increased position in the debt markets.

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Seed Equity Opens Equity Crowdfunding Platform to a Global Audience

todd croslandSeed Equity, founded by an Ernst and Young Entrepreneur of the year, is launching a U.S. Registered Broker-dealer and online equity-based crowdfunding platform for Startups targeting a global audience.  Seed Equity is a member of FINRA and SIPC.  Founder Todd Crosland previously started and sold Interbank FX – a company he operated from 2001 to 2011.

Seed Equity claims to already spans the US, Australia, Brazil, China, Denmark, Egypt, Hungary, Israel, Japan, Philippines, Poland, Russian Federation, Romania, Singapore, South Korea, Honduras, Cyprus, Mongolia, Nicaragua, Turkey and United Kingdom. The company is preparing to open an office in Tel Aviv.

Seed Equity LogoSeed Equity sees their launch coming at a time when the startup market is expanding geographically and investment is being diversified through crowdfunding initiatives.  The platform allows entrepreneurs to share information about their startup, carry out due diligence processes, apply for funding, and close formal international investment agreements with multiple investors.

“Countries like Israel and Chile have actively been supporting their own startup ecosystems through grants and tax breaks which has spurred a boom of promising startups across the globe,” said founder and CEO Todd Crosland.

Seed Equity points out that hundreds of foreign entrepreneurs continue to move their startups to the US to improve their access to investors who continue to invest mostly in local tech hubs such as San Francisco and New York City.

Pitch once on Seed Equity

“This is why we are seeing an increase in equity investment crowdfunding that allow promising foreign entrepreneurs to seek their investments at home,” Crosland adds.

“This trend to seek investment through crowd-funding is much more prevalent abroad, especially in developing tech hubs where the geographical and psychological barriers between the entrepreneur and potential US investors long impeded local startups to push through.”

 

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2013 in review

The WordPress.com stats helper monkeys prepared a 2013 annual report for this blog.

Here’s an excerpt:

A New York City subway train holds 1,200 people. This blog was viewed about 3,800 times in 2013. If it were a NYC subway train, it would take about 3 trips to carry that many people.

Click here to see the complete report.

 

Securities and Exchange Commission has approved a proposed amendment

Seal of the U.S. Securities and Exchange Commi...
Seal of the U.S. Securities and Exchange Commission. (Photo credit: Wikipedia)

 

NEW YORK, Oct 17 (Reuters) – The U.S. Securities and Exchange Commission has approved a proposed amendment from Wall Street’s industry-funded regulator that helps investment banks use a new U.S law aimed at easing the way for small companies to go public.

 

Six months after the JOBS (Jumpstart Our Business Startups) Act was passed amid much fanfare as a way to help companies raise money in public markets, banks have not embraced some key provisions, which allow analysts to join bankers on pitches to investors, and publish research reports before a company goes public.

 

The new amendment from the Financial Industry Regulatory Authority, effective immediately, eases the restrictions somewhat by aligning rules of the financial watchdog with those of the JOBS Act. The SEC approved the amendment on Oct. 11.

 

The rule change removes the previous 40-day quiet period after an initial public offering so underwriters can publish research. The change would also allow analysts and bankers to attend IPO pitch meetings or “bakeoffs” together, as long as the analysts don’t solicit business.

 

However, the FINRA change involving communication between analysts and their investment banking colleagues does not apply to Wall Street’s largest banks, bound by a separate regulation, the Global Research Settlement.

 

Read More Here

 

 

GrowVC Is More Than a CrowdFunding Platform

 

Grow Venture Community (Grow VC) by Grow VC Group, is the first global, transparent, community-based platformdedicated to entrepreneurs and investors.  Grow VC enables great ideas and great teams to get visibility with the right investing audience, funding and support earlier. Grow VC is more than crowd funding, it’s a nurturing ecosystem where entrepreneurs can connect with experts, funders, team members, new customers and partners to realize their ideas. Grow VC can help startups companies to build their teams and secure initial funding of up to 1M USD.

Grow VC Group International Headquarters is located in Hong Kong, with offices in the US, UK and Finland. Our main offices are located at: