Crowdberry receives significant investment for further development and welcomes new European regulation
25/10/2021
Crowdberry, which manages two growth capital funds in addition to its online investment platform, received an investment of nearly €1.5 million to develop and open the market further. The objective is to further expand the possibilities of financing for Czech and Slovak companies as well as real estate, while at the same time provide investors with a wide range of opportunities to increase their capital.
Since 2015, the Crowdberry investment platform has made it possible to invest directly in Czech and Slovak companies in a way that was previously reserved only for a narrow circle of investors. It is currently preparing for the enactment of the ECSP regulation – a set of harmonized rules for collective financing platforms in Europe. Obtaining a cross-border ECSP license would enable Crowdberry to further develop its online platform, expand its investment tools, and improve the availability of growth capital for Czech companies. These goals will be met with the help of new investments from 29 Czech and Slovak investors active on the Crowdberry platform.
“The interest shown among investors in joining Crowdberry has been double our expectations. After five years of work, we have been given a strong mandate to further develop a universal platform for the direct financing of dynamic companies and real estate. For us partners, this also means the commitment that we must continue to create value for companies that, thanks to capital from Crowdberry investors and our investment funds, contributes to the development of society.” Daniel Gašpar, Crowdberry partner.
Growth capital for 39 companies
In the last six years, private investors – mainly from the Czech Republic and Slovakia – have provided capital through the Crowdberry investment platform in the amount of over €30 million for the growth of 19 Czech and Slovak companies. These include such currently well-known companies as GymBeam, Footshop, Boataround, Isadore Apparel, Ecocapsule, MultiplexDX, Glycanostics či Sensoneo, as well as real estate projects, such as Dúbravská oáza, a modern center for patients with Alzheimer’s disease and seniors, and the KLM distribution centers and retail park developer.
Another €11 million was invested in 20 innovative Slovak start-ups through the Crowdberry investment fund managed by CB Investment Management. This year, Crowdberry launched a fund of qualified investors called CB Property Investors, which focuses on real estate investments and is regulated by the Czech National Bank.
Fintech platform and new services
V Crowdberry se aktuálně připravujeme na zavedení harmonizovaných pravidel pro platformy kolektivního financování (tzv. ECSP regulace) v Evropě. Získání přeshraniční licence ECSP umožní zajistit další rozvoj online platformy, rozšířit investiční nástroje a zlepšit dostupnost růstového kapitálu pro české a slovenské firmy.
For Czech companies, direct investments are a source of capital which allow them to finance business development as well as providing them with the opportunity to involve their customers in the ownership structure using professional mechanisms. Crowdberry’s goal is to increase the value of invested capital. This is one of the reasons why it actively works with companies even after the investment, looking for connections between companies and partners, sharing experiences, and helping to set up strategies, processes, marketing, operations and the like, so that the investment becomes even more valuable.
This is the business model, investment structures and transparency of processes, not to mention the results achieved and the prospect of the future value of portfolio companies, that have convinced investors to provide Crowdberry with nearly €1.5 million.
“We will use the investment responsibly, especially to deepen the digitalization of direct access to companies and real estate, as well as to the related development of our online platform that we are developing together with the Czech studio Applifting. We have significantly strengthened our team in Prague, where we run our own marketing agency for our own needs and for the companies in our portfolio. We will continue to focus on strengthening Crowdberry’s position in the Czech Republic and securing capital for more growing Czech companies and developers. We plan to emphasize the management of investments before and after their closure. The core of these activities will also be the application of new rules coming to us from Western Europe that anchor this method of valuing local capital and financing the growth of dynamic companies,” concludes Hynek Bartík.