How does crowdfunding platform perform in current bearish market and low interest environment? - Seedly
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Anonymous

Asked on 19 Mar 2020

How does crowdfunding platform perform in current bearish market and low interest environment?

Have some money in seedin/funding societies thinking if default risk jumps significant if current market conditions.

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CH
CH
Level 7. Grand Master
Answered on 21 Mar 2020

Hmm... interested to know too.

will be good if the various platforms publish their default rates. i think they have to declare to MAS, but just not sure how frequent do they have to do that.​​​

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GC
GC

08 May 2020

Performance of crowdfunding platforms is initially opined to perform better in tougher financial times. This is due to tightening of credit controls by the primary lenders. With stricter access to funding, companies would turn to alternative lenders such as the unconventional crowdfunding platforms. That being said, consideration has to be given to policies implemented by the government. One such implementation is that Enhance Financing Scheme where the government takes on a greater portion of lending risk from primary lenders. This measure might tilt the scale in favor of Banks which will inevitably affects performance of crowdfunding platforms.