Brutal honesty and collaboration: Life after an equity crowdfund raise
Manrags co-founder Michael Elias has spent the past week preparing to welcome 177 investors on board his business. The Melbourne-based underwear subscription business, which Elias founded with his wife Tina, successfully raised $363,000 two weeks ago through an equity crowdfunding campaign. The raise elevates Manrags into a small cohort of businesses that have successfully closed off this type of fundraising since licences were issued to equity crowdfunding platforms in January. “We hadn’t even run a capital raise to begin with, and just going down the path of a capital raise is quite full on,” Elias says. A new type of investor Now the process is complete, Manrags will be one […]
Prospa becomes first online small business lender to complete review of loan terms with ASIC
Prospa is the first online small business lender to have undertaken a full review of its loan terms after consultation with ASIC. Prospa has agreed to certain recommendations from ASIC in relation to removing or amending some of its contract terms. Some of these terms have, historically, not been relied upon, and other terms were amended to clarify or reflect existing policies. Prospa notes that the amendments agreed with ASIC do not have any material impact on the company financially or operationally. Prospa’s COO Ben Lamb said: “We’re always looking for ways to improve finance outcomes for small business owners. As the first non-bank lender to complete its review, we […]
ASX pushes back the start date for its blockchain
ASX has pushed back the “go live” date for its blockchain to clear and settle the Australian equities market by around six months, after market participants expressed concerns about meeting an ambitious timeline given the complexity of the technological change. Market players used a consultation process to express “a strong interest in better understanding the potential benefits that a DLT [distributed ledger technology]-based system can offer”, ASX said in a new “scope and implementation plan” for its replacement of the CHESS system. Brokers and investors want as much time as possible to get their heads around the technology, and to determine what investment spending will be required to connect with […]
The $4b buy now pay later startup built on a legal loophole
“I’m pretty bad when it comes to shopping,” Amanda*, a 23-year-old disability worker based in Melbourne tells Fairfax Media. “If I liked it, I’d Afterpay it”. It’s been said that the ultimate goal for a tech startup is to become a verb. If that’s the case, then Sydney-based Afterpay has well and truly made it. Amanda started using the buy now pay later service in 2016. She used it to purchase clothes, electronics and Christmas presents. But when her financial circumstances changed, she quickly ran into trouble. “When I started using it I was getting good money from work. I could afford the repayments, I always made sure I would […]
Morrison to fintechs: ‘Don’t stuff it up’
Treasurer Scott Morrison has told leaders of the fintech industry he’s counting on them “not to stuff up” the implementation of open banking because he wants the government’s new consumer data right to be a driver of competition and productivity gains across the economy. With the major banks lifting technology investment to fend off disruptive threats, Mr Morrison said he’s relying on start-ups to use his open banking and comprehensive credit reporting policies to increase pressure on the incumbents. “You are all in the business of financial technology disruption. I am in the business of policy disruption,” Mr Morrison said at Ashurst on Wednesday night. “I am frankly counting on […]
Open data revolution ramping up: What fintechs need to know
By Steve Philpotts, General Manager – Data Quality and Targeting, A/NZ at Experian In case anyone thought the open data revolution was settling down, last month’s advances have proved that we’re only just getting started. The government set new deadlines for Australia’s Open Banking regime, set aside millions in the budget for funding broader ‘Consumer Data Right’ measures, and announced that they will hire a National Data Commissioner. All this occurred in the shadow of data security concerns, and debates around the nuances of comprehensive credit reporting. Understandably, many financial services organisations have been left wondering how they can keep pace. As regulators across Australia are increasingly looking to […]
Meet Lex Greensill and the fintech that’s Australia’s newest $2b unicorn
A supply chain financing company with its roots in regional Queensland, Greensill, has become the country’s next $1 billion-plus unicorn, thanks to a $US250 million ($336 million) capital injection from growth equity firm General Atlantic, which also creates the country’s newest rich listers. Greensill, founded in 2011 in London by Bundaberg-born farmer Lex Greensill, 41, provides businesses in industries from telecommunications to manufacturing with working capital based on their invoices, allowing them to be paid faster and fulfil the work, without shortening payment terms for buyers. The capital raise, which is the first for the previously bootstrapped company that had only taken capital from family and friends, values Greensill at […]
Despite sensationalism and fear, blockchain is the real deal for businesses
It would seem that blockchain is gaining a bad reputation from many, thanks to the hyperbole being perpetuated in certain quarters. But while sensationalist and negative headlines confuse, a handful of banks are destined to have the last laugh as they move forward with adoption of the technology. The most common mistake being made, is that the terms “bitcoin”, “cryptocurrency” and “blockchain” are being used interchangeably. Cryptocurrency simply runs on blockchain – or distributed ledger technology – and that’s where the connection ends. One recent article was titled “Banks claim they’re building blockchains. They’re not” – the article was actually focused on bitcoin and cryptocurrency, meaning a more accurate title […]
