Bitbond and 1741 Fund Management launch alternative investment fund
Peer-to-peer (P2P) small business financing platform Bitbond has teamed up with 1741 Fund Management to launch an alternative investment fund, writes Julie Muhn at Finovate (FinTech Futures‘ sister company).
Through the partnership, any institutional investor will have access to a diversified portfolio of small business loans that are originated through Bitbond’s small business lending platform. The new product is set up as an Alternative Investment Fund under the EU’s Alternative Investment Fund Managers Directive.
Germany-based Bitbond offers small businesses across the globe fast access to working capital. Its platform connects small business owners with individual and institutional investors and leverages the blockchain to send cross-border payments quickly and inexpensively. Because Bitbond requires less manual involvement than traditional underwriting methods, it also has the advantage of scalability, the company says.
Since it was launched in 2013, the Bitbond platform has facilitated more than 2,300 loans worth $7.4 million (€6 million), most of which is used as short-term working capital for online retailers. Bitbond, which holds its own BaFin regulatory licence, boasts more than 130,000 users from 120 countries.
In 2016, Bitbond launched an automated SME scoring engine. The tool offers a universal, automated scoring method that provides borrowers instant funding after their application is accepted.
Last spring, the company brought in $5.4 million in debt financing and an undisclosed amount of equity funding, taking Bitbond’s total equity funds to more than $2.4 million.
Radko Albrecht is founder and CEO.