Discover Germany | Special Theme | Successful Start-ups, Germany
Crowdfunding means investing in people. Photo: © Pexels.com
Investing in a better future Companisto enables small investors in Germany, Austria and Switzerland to invest in start-ups and growth companies that are not yet listed on the stock exchange. Thereby, not only potentially high returns that are above average are attractive. Through equity-based crowdfunding, the investor also obtains emotional returns. TEXT: COMPANISTO GMBH; TRANSLATION: NANE STEINHOFF
Four years ago, the two lawyers David Rhotert and Tamo Zwinge brought Companisto to life. They have experienced the financial squeeze of young companies and medium-sized enterprises that want to grow at first hand during founding their first start-up. “A solution for the capital gap was needed,” says Rhotert. “Entrepreneurship needed support. Only with the needed financial start-up assistance an idea can be converted into entrepreneurial reality. And not every founder has a wealthy family.” During equity-based crowdfunding, small investors invest together During equity-based crowdfunding, private investors invest in start-ups and growth companies. Thereby, the so-called crowd collects the investment on the platform and makes it available to the compa74 | Issue 46 | January 2017
ny. They get an individual share of the profits and the start-up’s increase in value for this profit-participating subordinated loan. “Like this, we can not only help entrepreneurs to found their own company, but also involve investors in the capital market of companies that aren’t oriented towards the stock market. Up until 2011, they were completely excluded from this,” adds Zwinge. So far, 34 million euros were invested in start-ups and growth companies over Companisto. Around three million euros were already given to the investors during the four years of existence. Furthermore, investors do not need to accept any transaction or administration costs. All relevant information about the company and its profile are saved on the platform with which it applies for the cap-
ital. Like this, the investor can have a close look on financial figures, the founders and directors, as well as on the product or the service and the situation on the market. In the financial sector, this transparency is particularly innovative as it gives back a certain degree of autonomy to private investors. Equity-based crowdfunding on Companisto offers two investment models As a market leader in the DACH region, Companisto offers two different models for equity-based crowdfunding: investing in start-ups and investing in growth companies through venture loans. In the first case, investors receive start-up shares for their employed capital. These shares are calculated from the capital valuation and the invested capital. As it is all about venture capital in crowdfunding – just like it is when investing in the stock market – the return can achieve a value of up to 140 per cent. On the other hand, when opting for the venture loan, investors get paid interest to their bank accounts every six months.