Good news for Europe’s leading P2P lending provider TrustBuddy out of the Netherlands today.
According to Aukje de Vries, member of the House of Representatives in the Netherlands the “# crowdfunding Investment limit of € 20,000 and 40,000 is including 01-01-2016 deleted at the request #VVD. Overcoming obstacles!” That was Mrs de Vries tweeted this morning:
On her website, the politician later one wrote that:
“Bank financing now provides for 80% of the appropriations. This must and will change! The new fund is to combine and stacking of different forms of financing. The VVD wants to allow for this finance through crowdfunding. So no barriers and resolve any problem areas quickly. As of January 1, 2016 the investment limits of € 20,000 and 40,000 are released, at the request of the VVD. These are impediments to grow through crowdfunding. The VVD wants to further that as soon as possible a solution for other barriers such as the provision prohibiting investment firms and qualifying as payment service. The Minister promised in March 2015 to inform them about the House.“
As we have reported, the recent acquisition of Dutch SME P2P lending provider Geldvoorelkaar (GVK), has proven to be a very successful one for TrustBuddy. Last week, GVK managed to achieve a new milestone by increasing the amount funded to more than EUR 50m. This implies and increase of EUR 850,800 since last week (EUR 121,543 per day on average) and marked a sharp acceleration of business activity compared to last fall, when the average was EUR 83,871 per day. As of today, GVK had already surpassed EUR 51m in loans funded.
We also noted that if we were to apply the same EV/Sales multiple that US peer Lending Club is trading at to GVK’s expected 2015 result we would get an EV of EUR 75m or SEK 705m at current exchange rates. This would equal a fair share price of SEK 1,70, for GVK stand alone. GVK is growing faster and has a higher profitability than Lending Club.
Obviously, the new regulation greatly improves the growth possibilities for GVK in the Netherlands. It also shows, that many countries are actually embracing crowdfunding, inculding P2P lending. So far, investors could invest a maximum of EUR 40,000 in SME P2P projects. This limit is now abbolished as of January 1st, 2016. This should bode well for high growth going forward, given the large appetite shown by investors. Obviously, this in turn increases the value of GVK greatly. We believe that GVK stand-alone, is worth more than SEK 2 per share, which compares to today’s share price of SEK 0,99 for TrustBuddy as a whole.