Wonga this

In the middle of an economic crisis that has certainly taken its toll, one would think that investors would be extremely cautious on where they put their money... well, an "interesting" company called Wonga.com just got a $22 M second round of funding... and Wonga's business? Simlplified, transparent, short term lending at "2689% APR", consituting what they call "responsible lending". The VCs investing in it are not small names - Balderton Capital, Greylock Ventures, Accel Partners and Dawn Capital - that does give one plenty of food for thought.

Whether wonga.com turns out to be a giant online "payday" loan provider, or just another way of encouraging people to live outside of their means (live for the present, they say) - or is it going to replace the pals, the parents and the grandma - the typical sources people tend to borrow money from?

While wonga did success in getting a big round of funding, Umair Haque calls this the "Worst Business Model in the world" - he does outline in his article; he goes on to say that their Wonga is an investment that is bankrupt in the economic, strategic, competitive and ethical scheme of things. I was particularly tickled by the other proposed investments including this one:
"A global marketplace for people to sell their organs. It's like eBay meets ER"

Interesting things to think about... meanwhile, wonga this, I mean, enjoy this :)...