Local Crowdfunding investment in SME

[Boon]

Crowdfunding craze: Little recourse if things go wrong
Jacqueline WooThe Straits TimesMonday, Jun 06, 2016
http://business.asiaone.com/news/crowdfu...s-go-wrong
________________________________________________________________________________________________________________________

[Boon]

New licensing regime set for crowdfunding platforms
http://www.straitstimes.com/business/com...-platforms
________________________________________________________________________________________________________________________

[CY09]

http://www.channelnewsasia.com/news/busi...61412.html

This trend has already occurred in Singapore's P2P sector where one company goes for loans right after getting another on another lending platform

On a separate note, conditions in the P2P space don't seem well as I am experiencing some late payments including an invoice payment indirectly from the subsidiary of a reputable company/brand here.

[brattzz]

we just cannot trust OTHER people with OUR MONEY!

learn it or lose it!

but that's precisely what you do every time you buy a share, a bond or even just deposit your money into your bank account ....

share, bond, i agreed,

bank got guranteed by sg gov up to 50K per deposit.. so safe lah..

[CityFarmer]

Crowdfunding, isn't only for SME, but for personal small projects. Will you pay 7% interest for an installment payment plan? I forget what is the rate for Courts Asia's installment plans, anyone?

Crowdfunding helps woman set up solar energy system at home

SINGAPORE — When Ms Joyce Goh, 49, was renovating her Bukit Timah home a decade ago, she wanted to build a solar energy system on her rooftop, but it was too costly.

Things changed last week when Singaporeans helped her fund a solar photovoltaic (PV) system — possibly the first successful solar crowdfunding project for residential homes in Asia.

The project raised S$22,500 from two investors in 11 days, and the homemaker will install a 4.725 kWp solar PV system on her three-storey home in Cheng Soon Garden in the weeks ahead.

SunVest, the crowdfunding platform from SolarPVExchange, will put up more renewable projects, such as solar PV systems, for crowdfunding.

If successful, homeowners could adopt solar energy and, instead of paying upfront costs, fund their systems through an instalment plan. For instance, as Ms Goh, who lives with her husband and five children, is paying for another round of home renovations, SunVest’s 12-month instalment plan helps spread out the S$22,500 payment, she said.

Meanwhile, investors could earn interest through such green, renewable projects. In Ms Goh’s project, they will get 7 per cent, but the returns can vary, SolarPVExchange managing director Rob Khoo said.
...
http://www.todayonline.com/singapore/cro...ystem-home

[Triple70]

http://themiddleground.sg/2016/04/07/lik...lar-power/

To home owner.. Is this an expense or a cost saving investment?

[HitandRun]

Crowdfunding, isn't only for SME, but for personal small projects. Will you pay 7% interest for an installment payment plan? I forget what is the rate for Courts Asia's installment plans, anyone?

Crowdfunding helps woman set up solar energy system at home

SINGAPORE — When Ms Joyce Goh, 49, was renovating her Bukit Timah home a decade ago, she wanted to build a solar energy system on her rooftop, but it was too costly.

Things changed last week when Singaporeans helped her fund a solar photovoltaic (PV) system — possibly the first successful solar crowdfunding project for residential homes in Asia.

The project raised S$22,500 from two investors in 11 days, and the homemaker will install a 4.725 kWp solar PV system on her three-storey home in Cheng Soon Garden in the weeks ahead.

SunVest, the crowdfunding platform from SolarPVExchange, will put up more renewable projects, such as solar PV systems, for crowdfunding.

If successful, homeowners could adopt solar energy and, instead of paying upfront costs, fund their systems through an instalment plan. For instance, as Ms Goh, who lives with her husband and five children, is paying for another round of home renovations, SunVest’s 12-month instalment plan helps spread out the S$22,500 payment, she said.

Meanwhile, investors could earn interest through such green, renewable projects. In Ms Goh’s project, they will get 7 per cent, but the returns can vary, SolarPVExchange managing director Rob Khoo said.
...
http://www.todayonline.com/singapore/cro...ystem-home

Hmm........ is it just me or is there a ponzi scheme of sorts?


A solar PV system that is rated 4.725 kWp will only generate 4.725 * 4.55 * 365 = 7,847 kwh per year. 

Peak Sun Hours (according to this NUS study on pg 9, peak sun hours in Singapore is 4.55 hours / day)

If we plug in Singapore power's electricity tariff of 17.68 cts, potential savings to Ms Goh is like $1,387 per year. How long will she take before she breaks even? Who will be paying for the 7% return?    Or is Ms Goh saying that in the name of being environment friendly, she does not mind (i) paying more for her solar PV, (ii) paying a high 7% to investors and (iii) paying middleman fees to the crowdfunding platform...

P.S. Some folks will add that factoring a 20% capacity loss is quite reasonable.
P.P.S. AFAIK, Singapore does not favour PV by providing a higher feed-in tariff.

[HitandRun]

http://themiddleground.sg/2016/04/07/lik...lar-power/

To home owner.. Is this an expense or a cost saving investment?

This article by middle ground is worse. It appears to suggest that the scheme is self funding from the electricity tariffs. Please do your own maths....

[weijian]

Hmm........ is it just me or is there a ponzi scheme of sorts?
A solar PV system that is rated 4.725 kWp will only generate 4.725 * 4.55 * 365 = 7,847 kwh per year. 

Peak Sun Hours (according to this NUS study on pg 9, peak sun hours in Singapore is 4.55 hours / day)

If we plug in Singapore power's electricity tariff of 17.68 cts, potential savings to Ms Goh is like $1,387 per year. How long will she take before she breaks even? Who will be paying for the 7% return?    Or is Ms Goh saying that in the name of being environment friendly, she does not mind (i) paying more for her solar PV, (ii) paying a high 7% to investors and (iii) paying middleman fees to the crowdfunding platform...

P.S. Some folks will add that factoring a 20% capacity loss is quite reasonable.
P.P.S. AFAIK, Singapore does not favour PV by providing a higher feed-in tariff.

There is a saying in marketing that says that you sell the story that the person desires to represent. I guess it is worth it now that (1) She is in the news, (2) She drives an electric car. She will continue to reinforce her world/self view. (3) SunVest gets "free advertisement" and may be able to use this newspaper cutting in their archives/marketing material now.

[specuvestor]

Interesting summary:

"So Singapore's subaltern finance industry came up with what
looks like an efficient solution for working-capital financing:
crowdsourced promissory notes.
As long as the notes raise S$100,000 ($74,000) or more and
expire within a year, they aren't technically securities that
need to be sold with a prospectus. Earlier this year, Epicentre
Holdings, an Apple reseller, made news by becoming the first
publicly traded Singapore company to get money via crowdfunding,
raising S$1.5 million for a year at 13.5 percent.
But before excitement turns into frenzy and dubious
practices spring up, Singapore has decided to put an end to
crowdsourcing of promissory notes, and have proper securities
sold via regulated platforms instead.
Restricting crowdfinancing to a high-stakes parlor game
among consenting adults makes sense. It should help reduce the
cost of finance for small businesses, and sate the desire for
yield of moderately wealthy Singaporeans who didn't get into
Facebook before its IPO. The former have more assets than cash;
the latter have spare cash, but want assets.    
So why not let them transact?
For middlemen who promise to channel money only from
accredited and institutional investors, the Monetary Authority
of Singapore has decided to drop the base-capital requirement by
80 percent to just S$50,000, and scrap the security deposit of
S$100,000.
As for platforms that want to broaden the field, they don't
have to worry about both a retail investors' expertise and
suitability. If a customer is prepared to lose all his capital
and ready to hold on to an investment for 10 years, he's fair
game, even without a high-school diploma.
Companies can even now raise up to S$5 million in any 12-
month period without having to issue a prospectus.
Crowdfinancing can tap that limit, provided the securities offer
isn't made to the CEO's gym trainer -- unless, of course, she's
looking to get in on such deals"

http://www.bloomberg.com/gadfly/articles...-singapore

http://letscrowdsmarter.com/p2p-portfoli...16-update/

Interesting portfolio. Will be keen to follow up 12 months later.

Unlike Bitcoin that IMHO has no fundamental logic (see my posts in that thread) except scarcity perception, there are fundamental logic in P2P if done correctly though I think the risks are very high as main concern is return of money. For example I would be concern if entities with access to capital markets suddenly need this high cost channel

This guy's portfolio seems to be chugging along despite defaults. Take the % returns with pinch of salt as it doesn't take into account cash drag

http://letscrowdsmarter.com/portfolio-update-may-2016/