Alternative Finance and Information Gaps for Investors

Peer to Peer lending and Crowd Funding has grown rapidly in recent years. It is playing an increasingly important part in raising money for start up companies such as the craft beer maker Brewdog. However there are concerns about whether small investors are getting enough information about highly speculative start up businesses. Are the crowd using their collective wisdom to make some shred investment decisions to accelerate the expansion of some exciting businesses? Or is the irrational exuberance of crowds likely to ignore the high failure rate of business start-ups who have harnessed crowd funding and peer to peer lending?