Funding slowdown takes startups to alternative finance platforms
Our Partner, Abhinav Bhalaik has been quoted by The Financial Express (India) in an article which analyses the present situation wherein, start-ups are considering alternative investment platforms instead of traditional #banks and #NBFCs amidst funding slowdown.
Sharing his views on the risks involved in the #securities issued by such alternative financing platforms, especially from a #regulatory stand-point, Abhinav noted that these #funding platforms are at present operating in a regulatory grey area and #investors may not be not aware of the risks involved.
Further, according to Abhinav, “Investment platforms that offer equity and debt-based securities are essentially pooling in cash from multiple investors and these investments may not always be well-securitised. Most of the bond and debt offerings on these platforms are securitised based on the receivables as most software and technology companies do not have any hard assets”.
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