Credit financing opens the door to a better Pohoda and protects the festival’s independence, says founder

Pohoda Festival shapes not only the world of music and art, but also now the world of business and investment, as it becomes one of the first Slovak companies to use a new form of financing brought to Slovakia by Crowdberry. Credit (debt) crowdfunding will pave the way for further development of the festival, while maintaining its authenticity and independence. This marks a significant milestone for the festival as well as the transparency of the investment environment in Slovakia.

The collaboration between Michal Kaščák, founder of Slovakia's most famous music and arts festival, and the Crowdberry investment platform is a natural result of mutual convergence since the appearance at Pohoda 2018 of an Ecocapsule – a self-sustainable microhome developed by a crowdfunded company. After winning the Best European Medium Festival award in 2023 following a difficult period during the Covid pandemic, the festival is pressing ahead with designs to improve and expand. Crowdberry will accompany Pohoda on its journey as a strategic partner.

“Considering the situation that we found ourselves in during the post-pandemic years, we were wondering how we were going to continue with Pohoda. Although we had several offers to buy the festival, we decided to avoid the classic route and looked for an investment approach that would in no way compromise our control over the festival, the quality of the services and its very underlying philosophy. That is why we put our trust in debt financing, which turned out to be ideal for us,” says Kaščák.

An old-new approach to investing

Having obtained a European ECSP license, Crowdberry this year introduced a new investment product, private credit (debt) financing, which complements the time-tested “growth equity” investment opportunities.

This debt-secured investment approach has proven ideal for Pohoda, as it provides both the stability for investors and retention of control for the founders. This allows the festival to maintain its independence and creative control over operations and programming. At the same time, fixed repayment and interest terms allow the festival to plan its cash flows in detail and manage its long-term commitments with precision.