The crowd back DIY lender wiseAlpha to tune of £594,000

New start-up will use crowdfunding to develop "world's first" marketplace which allows investors lend to large British corporates

The “world’s first” online marketplace where people can lend to large British corporations, wiseAlpha, has secured £594,000 in an oversubscribed crowdfunding round via Crowdcube.

Based in London and founded by Rezaah Ahmad, wiseAlpha enables members to gain exposure to senior secured corporate loans on a company-by-company basis and lists corporate loan-based investments of blue chip British companies where the loans have already been issued by major international banks – such as Virgin Media, RAC, and United Biscuits.

With an aim to “democratise the multi-billion pound investment market for secured corporate loans”, the start-up says that investors that register to its platform are able to lend to larger businesses than peer-to-peer (P2P) lending currently allows and can earn rates of interest of between 5% to 8%.

Critics have said that the marketplace offers a “DIY approach to lending” and is “safer than P2P lending and bonds”.

Ahmad said he planned to use the crowdfunding to “revolutionise the investment landscape”:

“We used crowdfunding to raise funds because we believe it is one of most important financial innovations in recent years and, as another fin-tech company shaking up the large global corporate lending markets, we want to build a community of investors who are interested in being part of our journey as we aim to democratise access to some of the best investment opportunities.

“We believe that lending to some of the largest and most established companies in Britain is an attractive proposition for the discerning investor looking at diversifying their portfolio and doing something more interesting with their savings.”

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