When investing, your capital is at risk.
__
Inflation is rapidly increasing worldwide, meaning the value of money is falling by the minute. The UK inflation rate reached a decade high of 5.1% , whilst Europe was ever so slightly behind at 4.9%.
The best way to beat inflation is through investing. The issue is that the everyday investor typically doesn’t have the same protection institutional investors receive. So in a crisis, their risks are more significant.
Income Marketplace is here to change that. Income combines high-end technology with protection measures enabling everyone who invests to have a lower risk experience, despite their asset class.
In a conversation with Kimmo Rytkönen, Income’s founder and CEO, Kimmo discusses his motivations behind starting the loan investing platform and his top tips for new investors.
Can you tell us a bit about your career so far and what brought you to start Income Marketplace?
I’ve been in fintech and consumer credit for more than 10 years. After my previous exit, I actively invested my funds while thinking about what would be my next move. One of the asset classes I was investing in was loans, and I was doing it on existing platforms. When the COVID-19 pandemic hit, many of these platforms had problems servicing the investors. This is where the idea came from to build a platform that uses similar security features to institutional investors and bring it to the reach of all investors interested in loans as a high-yielding fixed income asset class.
Investing is a hot topic right now. Why is it important for people to prioritise investing?
Investing should be started as early as possible. Inflation is currently at a record high. Saving cash and keeping money on low-interest deposit accounts is no longer feasible if you want to preserve and generate wealth. It’s nice to see that younger people are starting to get interested in investing.
Income Marketplace has over 1,000 approved investors on the platform. Why are investors jumping at the opportunity to invest in loans?
Loans are a great asset for investors who appreciate cash flow and high yields. Currently, loans on Income have yielded on average 11.81% to investors. Investors also like to park money in loans while waiting for other investment opportunities such as dips in the stock market.
What is your competitive landscape like at the moment? How do you differentiate?
There are many investment opportunities around, and different platforms compete for their share in an investors’ portfolio. In addition to Income, a few other large European platforms offer loans as an investment that we are competing with for the share in investors’ portfolios.
Our key differentiation is security and simplicity. We aim to do the heavy lifting for the investors, and we’ve introduced novel security features that other platforms don’t have. An excellent investment experience in loans should be simple and safe.
How would you describe your team and how have they contributed to the growth of Income?
The Income team is excellent. We have 15 team members currently and, as with such a small team, everyone needs to contribute fully in their own field of expertise.
Some team members who joined had no previous experience in fintech, so it’s been great to follow their growth professionally.
What has been the biggest learning for Income Marketplace so far?
It takes a surprisingly long time to win the trust of investors for a new platform. It’s significantly different from selling goods or other services. I feel that now after about 12 months of operation, investors have seen that we are transparent and do our work well. The growth has started to pick up faster.
What part of Income’s journey are you most proud of?
There’s a lot to be proud of. We launched a working product in record time (June 2020 to Feb 2021 from idea to launch), and getting to 1,000 approved investors within the first 10 months of operation for a new platform is also an outstanding achievement.
How would the €750,000 you’re raising on Seedrs help take Income to the next level?
The key is to realise we are not raising funds to prove a concept but to execute the business plan and accelerate the growth of an existing product. The funds raised will do precisely that, and I hope to see significant growth in 2022.
When you’re not working, what do you do in your spare time?
I spend time with my family, work out in the gym, and train in boxing. Occasionally I watch a Netflix series.
What is one of your favourite books or podcasts?
One of the best books I’ve read is The Hard Thing About Hard Things by Ben Horowitz. The podcasts I like to listen to are Huberman Lab and The Tim Ferris show. One of our team members is also doing a show called The Estonian Experience, so I’ll have to mention them.
As an investor yourself, what’s your number one piece of advice for beginner investors?
Educate yourself before making your first investment. Start by choosing one investment type that you think would be interesting, and then read about it.
Once you’ve made your first investments, then look at something else that’s interesting to diversify your portfolio. In a relatively short time, you’ll figure out what works for you and what doesn’t.
Personally, I understand real-estate investing and loans the best, but I also try to educate myself in stocks and crypto. Start small and grow your portfolio as your understanding increases.
Income has a viable product with a strong group of investors championing the platform. To help Income scale their business and encourage more people to invest as early as possible, view their pitch here.
