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Why don't the P2P companies raise seed funding from venture capital or angel investors to put into the P2P loans? Or even take a bank loan at a lower rate to invest in the P2P loans? Why open to retail investors if the P2P companies can earn the high interest themselves?
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Adrian Goh Jun Wei
05 Jul 2019
Product at Nodeflair
Regarding the questions on why they don't raise money from VC/Angels, one of the reasons is that VC themselves have their own investors to account to and are looking for businesses with 3-5x ROI (or even way more). Unless a company has a potential to deliver that ROI, it is highly unlikely that VCs will provide funding to them.
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