Meet Crowdinvesting – a new, innovative way to invest, co-own and build global leaders out of Slovakia

Crowdfunding has become increasingly popular over the past decade, yet it has been with us for centuries. The Statue of Liberty in New York and the Czech National Theatre are both examples where communities funded an idea or a project. The latest innovation in crowdfunding is crowdinvesting, which allows investors to invest in and own a share in a privately held company or real estate.

While equity crowdinvesting has already been developed in markets like the UK and USA, the possibility to buy a share in a company that investor likes or believes in is new to Central and Eastern Europe (CEE). Platforms such as Conda, Crowdberry or Fundlift allow private investors to become a part of a company and companies can gain capital for growth, attract new customers or brand ambassadors and even attract new talent to the company.

Private investment and co-ownership actively supporting value creation

In winter 2016, Tomas Zacek, co-founder of the self-sustainable micro-home Ecocapsule met 20 potential investors at one of Crowdberry’s investor events at Tatra banka Private Banking. He presented his vision, persuading them to invest in it and to become a part of his company. Already back then the idea behind Ecocapsule and its iconic design were resonating across the world and company was receiving hundreds of order inquiries. At that time, Tomas only had four colleagues and almost no budget. He was not eligible for bank financing, and it was also too early for an investment fund.

In what has become one of the largest crowdinvesting campaigns in the CEE, Ecocapsule, being among the most innovative companies in Slovakia, accepted 11 private investors as new co-owners. An investment totalling 750,000 euros enabled the company to produce first pieces of the world-renowned, self-sustainable mobile micro-house. Some of the investors also supported the company on its path of growth by helping with sourcing components, development, distribution in Southeast Asia and identifying suitable factory locations and potential clients.

In January 2018, they all watched together Slovak journalists observing the first Ecocapsule during Ecocapsule’s world premiere on the roof of the UNIQ building in Bratislava’s city centre.

The second investment round, launched in June, will be used for serial production and was still open for new investors at the time of writing. First round investors are already seeing an valorisation of their initial investments and are also participating in the second round.

With 2.75 million euros from dozens of investors in two investment rounds, Ecocapsule’s funding story best signifies what equity crowdinvesting is about. Investors become a part of the company’s entrepreneurial story and are able to actively engage in improving the value of their investment if they wish to do so.