Connect with us

Investing

Stand Out from the Crowd

Published

on

Draft Article – Global Banking & Finance

By Sam Quawasmi, Co-Founder of Eureeca

Whilst having a great business idea or invention is a brilliant foundation it is rarely enough to guarantee success on its own. For that, you are likely to need capital and, unless you are extremely wealthy, then you will need to rely on external investment if you are to grow your business.

There are a range of options out there for businesses to consider such as traditional angel/venture capitalist (VC)funding, however, equity crowdfunding is the newest addition and is becoming increasingly attractive.In fact, a 2016 University of Cambridge report suggested that year-on-year growth in the sector was almost 84%, and a World Bank Report has found that global crowdfunding investment could grow to $90 bn by 2025.

So, what is it and why can it be a great option?

Equity crowdfunding, the model used by us here at Eureeca, allows investors of nearly all profiles to buy equity (shares) in growth-oriented private businesses. These can be from any sector and we currently have clients from retail to technology and everything in between.

Our international investors – which are comprised of friends and family, customers, casual retail investors, angel investors, and institutional firms – effectively become co-owners of the business and are naturally incentivised to help it succeed. In simple terms its allows startups and growing companies to get funding from people who often bring more to the table than just money. It makes capital raising and investing more accessible, efficient and transparent than other traditional sources of capital and rather than replacing angels and VCs, the model is serving as a vehicle for them to invest in SMEs, along with the rest of the crowd.

 Counting the cost

Sam Quawasmi

Sam Quawasmi

It is also very affordable with a limited financial risk as equity crowdfunding platforms usually only charge a fee to businesses if, and when, the money is raised. If the campaign is unsuccessful there is nothing to pay. Companies choose how much capital they wish to raise and how much equity they are prepared to part with.

Control and Profile

Another potential benefit is that crowd investors are unlikely to want or expect high levels of control or influence over a business in the way that VCs often demand. This can be very important for many business owners who are understandably not keen to pass over control of their creation.It is also a fantastic opportunity to showcase your business and can help to drive sales as well as investment. Getting people invested in your project is generally considered the most effective way to get them to contribute, and telling a story is often the best way to get a customer’s attention. The best solution is to pitch your product around the problem it solves rather than just stating the benefits. Using visual media such as video and photographs is an excellent way of doing this.

Which platform?

There are a number of equity crowdfunding platforms out there so it is important to check that you are choosing the right one for your business. Key differences are in the type of business ideas they accept, the commercial requirements, the people they reach and how they can help support you. For example, at Eureeca our USP is that we specialise in giving businesses the chance to access funding from an international pool of investors, as we are the most regulated equity crowdfunding platform in the world, with four licenses to operate in three different continents (Europe, Middle East and South East Asia).

This broadens the investor base and also means that business can leverage this network for strategic connections and expansion into new markets.We have a very hands-on approach and work closely with businesses to help them prepare campaigns and advisethem once the goal has been achieved.

Conclusion

To conclude, equity-based crowdfundingrepresents an attractive opportunity for many early and mid-stage companies who are looking to raise capital, but it is important to find the right match that can help you stand out from the crowd and support the next stage of your growth.

About Eureeca:

Eureeca is the first global equity crowdfunding platform. It enables members of its investor network, who range from casual and angel investors to institutional firms, to buy shares in growth-oriented businesses, while providing operational businesses with crucial access to capital.

Eureeca is a multi-regulated platform, having received licensing from the UK Financial Conduct Authority and the Securities Commission Malaysia in 2015, and recently the Netherlands Authority for the Financial Markets and Dubai Financial Services Authority. From its offices in Dubai, London, Kuala Lumpur, and Amsterdam, Eureeca offers high-yield potential investment opportunities from the Middle East, Europe, and Southeast Asia to its 16,000-strong investor network. Businesses raising funds can leverage this network for capital, strategic connections, and expansion into new markets.

Eureeca Ltd. is a subsidiary of Eureeca Capital SPC, with offices in London. Eureeca Ltd. is authorised and regulated by the UK’s Financial Conduct Authority (FCA) under license number 624555.

Launched in 2013, eureeca.com was founded by experienced investment professionals, Chris Thomas and Sam Quawasmi, and is a founding member of the U.S. based National Crowd Funding Association (NLCFA).

Investing

Shares rise as cyclical stocks provide support; yields climb

Published

on

Shares rise as cyclical stocks provide support; yields climb 1

By Saqib Iqbal Ahmed

NEW YORK (Reuters) – A gauge of global equity markets snapped a 3-day losing streak to edge higher on Friday, as the recent selling pressure on high-flying big technology-related stocks eased even as investors showed a preference for economically sensitive cyclical sectors.

Oil prices fell from recent highs as Texas energy companies began preparations to restart oil and gas fields shuttered by freezing weather, while the U.S. Treasury yields extended their recent rise.

The MSCI’s global stock index was up 0.47% at 681.88, after losing ground for three consecutive sessions.

On Wall Street, stocks steadied as cyclical sectors edged higher while tech names made modest advances after concerns about elevated valuations led to some selling in recent sessions.

“What we saw (this week) represents a market that is tired and may not do very much. So we are headed for some sort of a pullback, but I don’t think we’re there just yet,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“Investors are not really pulling out of the market, but they are becoming more cautious. It already has factored in another good positive earnings season.”

The Dow Jones Industrial Average rose 119.97 points, or 0.38%, to 31,613.31, the S&P 500 gained 12.93 points, or 0.33%, to 3,926.9 and the Nasdaq Composite added 92.58 points, or 0.67%, to 13,957.93.

The S&P 500 technology and communication services sectors, housing high-value growth stocks, were among the smallest gainers in early trading, while financials, industrials, energy and materials rose more than 1%.

European shares edged higher on Friday as an upbeat earnings report from Hermes boosted confidence in a broader economic recovery. The pan-European STOXX 600 index was 0.64% higher.

U.S. Treasury yields on the longer end of the curve rose to new one-year highs on Friday as improved risk appetite boosted Wall Street, while the yield on 30-year inflation-protected securities (TIPS) turned positive for the first time since June.

Core bond yields have pushed higher globally, led by the so-called reflation trade, where investors wager on a pick-up in growth and inflation. Growing momentum for coronavirus vaccine programs and hopes of massive fiscal spending under U.S. President Joe Biden have spurred reflation trades.

The benchmark 10-year yield was last up 5.1 basis points at 1.338%, its highest level since Feb. 26, 2020.

Oil prices retreated from recent highs for a second day on Friday as Texas energy companies began preparations to restart oil and gas fields shuttered by freezing weather.

Unusually cold weather in Texas and the Plains states curtailed up to 4 million barrels per day (bpd) of crude oil production and 21 billion cubic feet of natural gas, analysts estimated.

Brent crude futures were down 28 cents, or 0.44%, at $63.65 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 66 cents, or 1.09%, to $59.86.

Copper jumped to its highest in more than nine years on Friday and towards a third straight weekly gain as tight supplies and bullish sentiment towards base metals continued after the Chinese New Year.

Spot gold XAU= was down 0.58% at $1,785.71 an ounce.

The dollar lost ground on Friday, extending Thursday’s decline as improved risk appetite sapped demand for the safe-haven currency and drew buyers to riskier, higher-yielding currencies. The dollar index was off 0.295%.

Bitcoin hit yet another record high on Friday, hitting a market capitalization of $1 trillion, blithely shrugging off analyst warnings that it is an “economic side show” and a poor hedge against a fall in stock prices.

(Reporting by Saqib Iqbal Ahmed; Editing by Nick Zieminski)

Continue Reading

Investing

Oil falls after surging past $65 on Texas freeze

Published

on

Oil falls after surging past $65 on Texas freeze 2

By Stephanie Kelly

NEW YORK (Reuters) – Oil prices fell on Thursday despite a sharp drop in U.S. crude inventories, as market participants took profits following days of buying spurred by a cold snap in the largest U.S. energy-producing state.

Brent crude fell 41 cents, or 0.6%, to settle at $63.93 a barrel. During the session it rose as high as $65.52, its highest since January 2020.

U.S. West Texas Intermediate (WTI) crude futures fell 62 cents, or 1%, to settle at $60.52 a barrel, after earlier reaching $62.26, the highest since January 2020.

Brent had gained for four straight sessions before Thursday, while WTI had risen for three.

“The market probably got a little bit ahead of itself,” said Phil Flynn, a senior analyst at Price Futures Group in Chicago. “But make no mistake, this selloff in oil doesn’t solve the problems. The problems are going to persist.”

Though some Texas households had power restored on Thursday, the state entered its sixth day of a cold freeze. It has grappled with refining outages and oil and gas shut-ins that rippled beyond its border into Mexico.

The weather has shut in about one-fifth of the nation’s refining capacity and closed oil and natural gas production across the state.

“The temporary outage will help to accelerate U.S. oil inventories down towards the five-year average quicker than expected,” SEB chief commodities analyst Bjarne Schieldrop said.

Prices dropped despite a decrease in U.S. oil inventories. Crude stockpiles fell by 7.3 million barrels in the week to Feb. 12, the Energy Information Administration said on Thursday, compared with analysts’ expectations for an decrease of 2.4 million barrels.

Crude exports rose to 3.9 million barrels per day, the highest since March, EIA said.

“The big nugget was the big jump in exports of crude oil,” said John Kilduff, partner at Again Capital in New York. “We’ll have to see what happens with that next week weather in Texas, but I have been looking for a pickup there for a while.”

Oil’s rally in recent months has also been supported by a tightening of global supplies, due largely to production cuts from the Organization of the Petroleum Exporting Countries (OPEC) and allied producers in the OPEC+ grouping, which includes Russia.

OPEC+ sources told Reuters the group’s producers are likely to ease curbs on supply after April given the recovery in prices.

(Additional reporting by Yuka Obayashi in Tokyo; editing by Emelia Sithole-Matarise, Steve Orlofsky, David Gregorio and Jonathan Oatis)

 

Continue Reading

Investing

GameStop frenzy sparks fresh investment in stock-trading apps

Published

on

GameStop frenzy sparks fresh investment in stock-trading apps 3

By Jane Lanhee Lee

OAKLAND, Calif. (Reuters) – The recent trading frenzy centered on GameStop Corp and other “meme” stocks is sparking a wave of investor interest in start-ups aiming to mimic the success of Robinhood Markets Inc, whose no-fee brokerage app has helped drive a trading boom.

Public.com, a direct competitor to Robinhood that boasts a host of blue-chip backers, said on Wednesday it had raised $220 million, valuing it at $1.2 billion on the private market. Another well-heeled rival, Stash, said earlier this month it had raised $125 million, while Webull Financial LLC, backed by Chinese investors, is also raising fresh funds after enjoying an influx of new users.

Robinhood, meanwhile, raised some $3.4 billion in the midst of the GameStop furor to assure its stability amid rapid growth and demands by its trading partners that it post more collateral.

The fresh investments are coming even as government regulators ramp up scrutiny of Robinhood and others involved in the GameStop trading. A U.S. congressional committee on Thursday grilled the chief executive of Robinhood and a YouTube streamer known as “Roaring Kitty,” among others, as it probes possible improprieties, including market manipulation.

Robinhood came under stiff criticism from some quarters for restricting trading in GameStop and other shares at the height of the frenzy, a move the company says it was forced to make due to requirements of partners that settle trades. It has also drawn scrutiny for a business model that relies on payments for sending trading business to partner brokerages, a practice Public.com and some other rivals are pledging to avoid.

Investors see rich opportunity in bringing easy stock trading to smartphone users globally, though the companies say they are also cognizant of the risks.

Stash, which doubled its active accounts to over 5 million by the end of last year, operates with only four trading windows a day to discourage rapid speculative trading, it said.

U.K.-based Freetrade.io told Reuters by email that its user numbers last year grew six-fold to 300,000 and by mid-February had reached 560,000. It said it had raised a total $35 million, including from crowd-funding rounds from over 10,000 customers.

But it does not offer margin trading or riskier offerings. “These products encourage investors to behave as if they are gambling or speculating rather than investing,” a Freetrade.io spokesman said.

Interest in trading apps is soaring globally. In Mexico, trading app Flink launched seven months ago and already has a million users, according to co-founder and chief executive Sergio Jimenez. He said Mexicans can buy fractions of U.S. stock through the platform, but not Mexican stocks – yet.

“Ninety percent of them are investing for the first time,” said Jimenez.

Flink raised $12 million in a funding round in February led by Accel, an early investor in Facebook. Accel is also an investor in Public.com and Berlin-based Trade Republic Bank Gmbh, which allows European retail investors to buy fractions of U.S. stocks, according to Accel partner Andrew Braccia.

“The bigger story here is there’s just this global trend of… accessibility,” he said.

Start-up investors also see opportunity in the infrastructure behind the trading apps. DriveWealth, which serves Mexico’s Flink and 70-plus other online trading apps around the world, has hundreds more partnerships in the pipeline, according to founder and chief executive Bob Cortright. DriveWealth provides the technology to power digital wallets and trading apps, and also provides clearing and brokerage service to its business partners.

“This is this is only beginning,” said Cortright. “The fact that you could have a smartphone in your hand in India, for instance, and buy $10 worth of Coca-Cola stock at an instant, that’s pretty game-changing.”

Venture capital investments in U.S. fintech companies hit a record last year with $20.6 billion invested, according to data firm PitchBook. Globally, around $41.4 billion was invested in fintech companies in 2020.

(Reporting By Jane Lanhee Lee in Oakland; Editing by Jonathan Weber and Dan Grebler)

Continue Reading
Editorial & Advertiser disclosureOur website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.

Call For Entries

Global Banking and Finance Review Awards Nominations 2021
2021 Awards now open. Click Here to Nominate

Latest Articles

UK might need negative rates if recovery disappoints - BoE's Vlieghe 4 UK might need negative rates if recovery disappoints - BoE's Vlieghe 5
Top Stories1 hour ago

UK might need negative rates if recovery disappoints – BoE’s Vlieghe

By David Milliken and William Schomberg LONDON (Reuters) – The Bank of England might need to cut interest rates below...

UK economy shows signs of stabilisation after new lockdown hit 6 UK economy shows signs of stabilisation after new lockdown hit 7
Top Stories1 hour ago

UK economy shows signs of stabilisation after new lockdown hit

By William Schomberg and David Milliken LONDON (Reuters) – Britain’s economy has stabilised after a new COVID-19 lockdown last month...

Dollar extends decline as risk appetite favors equities 8 Dollar extends decline as risk appetite favors equities 9
Trading1 hour ago

Dollar extends decline as risk appetite favors equities

By Stephen Culp NEW YORK (Reuters) – The dollar lost ground on Friday, extending Thursday’s decline as improved risk appetite...

Bitcoin hits $1 trillion market cap, soars to another record high 10 Bitcoin hits $1 trillion market cap, soars to another record high 11
Trading1 hour ago

Bitcoin hits $1 trillion market cap, soars to another record high

By Gertrude Chavez-Dreyfuss and Tom Wilson NEW YORK/LONDON (Reuters) – Bitcoin touched a market capitalization of $1 trillion as it...

Shares rise as cyclical stocks provide support; yields climb 12 Shares rise as cyclical stocks provide support; yields climb 13
Investing1 hour ago

Shares rise as cyclical stocks provide support; yields climb

By Saqib Iqbal Ahmed NEW YORK (Reuters) – A gauge of global equity markets snapped a 3-day losing streak to...

Battling Covid collateral damage, Renault says 2021 will be volatile 14 Battling Covid collateral damage, Renault says 2021 will be volatile 15
Business2 hours ago

Battling Covid collateral damage, Renault says 2021 will be volatile

By Gilles Guillaume PARIS (Reuters) – Renault said on Friday it is still fighting the lingering effects of the COVID-19...

Portable Oxygen Concentrators Market to Register 7.8% CAGR Through 2026; Sales to Surge as Oxygen Therapy Becomes Crucial in Covid-19 Treatments 16 Portable Oxygen Concentrators Market to Register 7.8% CAGR Through 2026; Sales to Surge as Oxygen Therapy Becomes Crucial in Covid-19 Treatments 17
Research Reports4 hours ago

Portable Oxygen Concentrators Market to Register 7.8% CAGR Through 2026; Sales to Surge as Oxygen Therapy Becomes Crucial in Covid-19 Treatments

Portable oxygen concentrator manufacturers are largely concerned with the maintenance of inventories throughout the coronavirus crisis, with optimization of supply...

Cancer Supportive Care Products Market to Reach US$ 32 Bn by 2030; Sales Limited by Complications for Cancer Patients Through Covid-19 Infections 18 Cancer Supportive Care Products Market to Reach US$ 32 Bn by 2030; Sales Limited by Complications for Cancer Patients Through Covid-19 Infections 19
Research Reports4 hours ago

Cancer Supportive Care Products Market to Reach US$ 32 Bn by 2030; Sales Limited by Complications for Cancer Patients Through Covid-19 Infections

The cancer supportive care products market is anticipated to reach a valuation of US$ 32 billion by 2030. The industry is expected...

Bronchoscopes Sales to Rise 1.5x Between 2018 and 2028; Potential Covid-19 Diagnostic Applications to Generate Lucrative Growth Opportunities 20 Bronchoscopes Sales to Rise 1.5x Between 2018 and 2028; Potential Covid-19 Diagnostic Applications to Generate Lucrative Growth Opportunities 21
Research Reports4 hours ago

Bronchoscopes Sales to Rise 1.5x Between 2018 and 2028; Potential Covid-19 Diagnostic Applications to Generate Lucrative Growth Opportunities

Bronchoscope manufacturers remain focused on development initiatives to improve product functionality and accuracy for higher adoption amid healthcare facilities. The bronchoscopes...

US$ 1.1 Bn Hypoparathyroidism Treatment Market Still in Infancy 22 US$ 1.1 Bn Hypoparathyroidism Treatment Market Still in Infancy 23
Research Reports4 hours ago

US$ 1.1 Bn Hypoparathyroidism Treatment Market Still in Infancy

Mushrooming incidences of thyroid cancer have amplified the number of thoracic surgeries, thus stimulating growth of hypoparathyroidism treatment market. Future...

Newsletters with Secrets & Analysis. Subscribe Now