NSRInvest.com and LendingRobot.com will operate independently while the focus is on LendingRobot Series, an alternative lending robot-fund that allows investors to diversify across leading real estate, small business and consumer lending platforms. The fund’s legal structure allows it to meet individual investor needs while also allowing that investor to specify duration and risk tolerance
“I have been quite friendly with Emmanuel (Marot, Lending Robot cofounder and CEO) and the team at LendingRobot for years and have really respected what they built over the years,” Mr. Brustkern said. He kept in regular contact with Mr. Marot for several years before they decided they were better off working together.
The challenge for any fintech is to develop a simple and easy to understand front end no matter how complex the back end may be, Mr. Brustkern added. And when NSR Invest began their due diligence on LendingRobot they were thrilled with both.
The new entity has strengths in industry knowledge, investment algorithms, machine learning and blockchain technology.
“For us the blockchain is all about transparency and the imprint of fact so we can put out there on a weekly basis our ledger of investments and help part of the public blockchain,” Mr. Brustkern said.
Transparency’s importance has been highlighted by multiple recent cases where investors were misled. If the alternative finance industry is to fulfill its potential, prospective borrowers, investors and regulators have to be confident they are given complete and accurate information. The technology now available makes that easier to provide than ever before.
“The blockchain is immutable and cannot be unpublished,” Mr. Brustkern said.
When watching new technologies, Mr. Brustkern said he weighs if that technology can help bring more interesting assets to the table by making it easy for investors to participate in them. Whether it be real estate, litigation finance, consumer finance or international exposure, there are a growing number of sectors for investors to consider, with more on the way.
“The investor can self-characterize their tolerance level and then add assets to fit that tolerance,” Mr. Brustkern said.