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To Fintech and Beyond

by on 21 June 2019in 2019 No comment

The fintech sector continues to show growth and innovation.  At the same time, it is not an industry that is dominated by the biggest names.  Innovation and a creative approach to technology allows smaller start-ups to compete toe to toe with more established brands.  This makes it a very popular choice for those looking for the highest growth investment opportunities.

Venture capital funding of fintech start-ups topped $32 billion globally in 2018 according to CB Insight.   At the same time, in 2018 there were 30 fintech exits in the US at over $7 billion in value. M&A activity is expected to accelerate as financial services incumbants acquire emerging fintech companies in an effort to stay competitive.  With more fintech unicorns than any other industry vertical, fintech is widely tipped to remain one of the highest returning VC sectors with no shortage of high potential areas to disrupt in financials services.

For investors that have not already jumped on the fintech bandwagon, fear not as the next wave of value creation from younger fintechs could well be even bigger than the first.

Technology to Back in 2019 Part 1 – Building on Digitalisation

by on 8 April 2019in 2019 No comment

Innovation in the tech industry moves at breakneck pace. As technology evolves, it enables even faster change and progress; the resulting wider adoption and usage causes further acceleration of the rate of change, until eventually it becomes exponential.  When mobile phones were first introduced, they took 12 years to reach 50 million users; the internet took just seven years to get to the same point.  Once digital technologies emerged the rate is accelerated dramatically; Facebook reached 50 million users in 4 years; WeChat, one year and Pokemon GO, nineteen days.

Disruptive technologies are predicted to accelerate and transform many industries at a rapid pace throughout 2019.  These technology trends will shape the world and the future and will present opportunities for business owners and investors alike.

Technology to Back in 2019 Part 2 – Post-Digital and Beyond

by on 8 April 2019in 2019 No comment

Technology innovation over the past decade has seen most businesses embrace digitalisation to increase efficiencies and customer reach.  The digital framework is set to become the foundation for disruptive technologies to offer businesses extraordinary new capabilities as services become highly customised, real time experiences built around customer needs and preferences.

Here we further review the new technologies tipped to be transformative in 2019.

Can diversification increase returns?

by on 27 November 2018in 2018, Uncategorized No comment

Diversification is an important strategy for investors and is when you spread your money across different asset classes and also investment types.

The goal of diversification is to spread risk and improve the consistency of your investment portfolio.

The financial crisis and subsequent monetary easing, has affected the way certain assets have performed and also the make-up of a well balanced portfolio. Below, we look at how investors are diversifying in today’s market.

The Alternative Investment Market – A stockpicker’s dream

by on 12 October 2018in 2018 No comment

The Alternative Investment Market (AIM) can be a fertile hunting ground for investors, but it can also be a minefield. Small, unproven companies are inherently riskier than larger, established companies. As such, investors seek much higher upside on AIM companies.

Whilst AIM shares are not for the fainthearted, they can provide diversification and enhance portfolio performance.

AIM has built a reputation as an attractive marketplace for companies and investors, and a highly tax-efficient one. Qualifying shares listed on AIM are exempt from inheritance tax once they have been held for two years and have been allowed in ISAs since 2013.

What is an ICO?

by on 26 September 2018in 2018 No comment

2017 has been called the year of the ICO with the emergence of Initial Coin Offerings and over $6.1 billion raised for more than 870 different companies.  This was almost 70 times the amount raised in 2016.  The $6.96 billion already raised in 2018 for over a thousand companies, suggests that 2017 was not a flash in the pan and could have been the start of the era of the ICO (source ICOData).

Blockchain – A catalyst for transformation

by on 30 August 2018in 2018, Uncategorized No comment

 

The internet has created a global marketplace over the past forty years.  A consequence has been a high level of fraud resulting in an increasing trust gap.  Intermediaries help to add a level of verification but there still remains a leap of faith that the intermediary is trustworthy and competent. With the number of smart devices predicted to outnumber humans seven fold by 2020, new technology is required to fill the growing trust gap.  Up step blockchain, tipped to radically change record keeping for shares and derivatives, property, governmental agencies and filing accounts.  The resultant ledger is an immutable record trusted by all counter parties that speeds up and reduces the cost of transactions.  Blockchains could replace all intermediaries and what’s more, every company in the world could be at risk of competitors that embrace and incorporate this game changing technology.  Below we look at how blockchain works, its strengths and weaknesses and what future applications could be.

Blockchain technologies will initially target industries where poor service is delivered at a high cost.

One thing for sure there is far more to blockchain than Bitcoin.

Artificial Intelligence – Who will be the Winners and Losers?

by on 30 May 2018in 2018 No comment

Artificial intelligence (AI) is predicted to boost UK productivity by a much needed 30 per cent whilst generating cost savings of up to 25 per cent.  The government is targeting for AI to add £232 billion to the economy by 2030.

London is currently leading the world in AI through companies such as DeepMind and the UK’s AI sector is growing faster than the US or Canada.   However, the government will need to invest heavily as the US and China are battling for supremacy in the AI field.

Big Tech Valuations – Tesla a case study

by on 9 May 2018in 2018 No comment

Last September Tesla’s market value briefly passed that of General Motors, America’s largest car maker, despite Tesla having made fewer vehicles in its lifetime than GM makes in a month.

Shares in the group have dropped by more than 21 per cent since. Nonetheless, investors have stuck by Tesla, hoping the company will lead the electric car revolution. As an honorary member of NATU, Tesla has clearly been identified as a technology powerhouse.

Tesla stock delivered a handsome positive return of 45.7% in 2017. These gains were much higher than the broader market and other mainstream automakers. By comparison, the S&P 500 Index yielded 19.4% returns, and outperformed traditional auto makers General Motors (+17.7%), Ford (+3%), and Toyota (+8.5%) in 2017.

Tesla’s high valuation has been repeatedly questioned by experts.  Tesla has been listed on NASDAQ since 2010 so whilst debate ensues, the fact is the market values the company and as an investor you have the opportunity to buy into the trend or sell if you feel strongly that the company does not warrant such a lofty valuation.