Crowdinvesting as an alternative form of financing for SMEs
The fundamental goals of every company are growth and expansion. Thus, in addition to startups, small and medium-sized enterprises (SMEs) also benefit from the alternative financing form of crowdinvesting. The key difference is that SMEs rely on an already established business model. For investors, this is a decisive advantage: SMEs have been on the market for years and are less risky.
Since the financial crisis, banks have become increasingly strict in granting loans and demand higher equity ratios. Many medium-sized companies are therefore opting for financing via crowdinvesting. With our crowdinvesting platform CONDA, we create a sustainable financing option for small and medium-sized enterprises.
Advantages of crowdinvesting for SME financing
Many entrepreneurs are taking advantage of the far-reaching benefits of crowdinvesting for SME growth steps. However, crowdinvesting is much more than just a tool for financing SMEs. Thus, the attractive form of financing is also always a marketing campaign. As a result, customers and important partners become investors, which strengthens customer loyalty to your company. Through a crowdinvesting campaign, you not only receive the capital you need. Financing SMEs via our crowdinvesting platform increases public visibility, strengthens brand awareness, opens up new target groups and further expands the customer network.
The CONDA investment model for SMEs
Possible capital gains on exit
Crowdinvestors provide your SME with capital through equity. In this way, they also participate in the entrepreneurial risk within the scope of their contribution.
The issue of participation certificates confers on the investor the right to receive a dividend, but no rights of co-determination or decision-making. In the case of the issue of equity participation certificates, the investor is given the right to vote. On the other hand, participation in equity means that the investor shares the financial risk of the company and thus also a risk of loss.
Depending on the needs of the company, a loan of up to one million is an alternative to a capital increase. In this case, the crowdinvestors do not become shareholders in the company and have no say or decision-making rights. The base and bonus interest rates, as well as interest payment and redemption dates, are determined on the basis of various key company figures and represent your individual offer to the crowdinvestors. You can find more detailed conditions for the payment of the base interest rate and the bonus component in the sample of our subordinated loan contract.
Crowdinvesting Quick Check
Use the questions to find out if your SME is suitable for crowdfunding.
- Want to finance your SME and run a sustainable marketing campaign at the same time?
- Your business model is economically attractive - also for investors?
- Your company is a corporation (GmbH or AG) and an SME (according to EU definition)?
- Are your financing needs greater than CHF 100,000?
- Do you have a motivated team and enough resources to implement the crowdinvesting campaign?
- Is your company located in Austria, Germany or Switzerland and was it founded at least 3 years ago?
- Was EBIT positive in two of the last three years?
- Is the company operational and not a wholly owned subsidiary of a parent company?
- Your SME is not involved in any of the following industries: Pornography, prostitution, gambling, esotericism, armaments and weapons industry.