Investment companies often require a relatively high minimum investment which limits the size of their potential crowd of investors.
Having a crowdfunding platform specialised for their sector allows them to grow their crowd of investors and at the same time save resources by streamlining and digitising processes.
With a crowdfunding platform investment companies can...
Lower the minimum investment amount and thereby receive investments from a much larger crowd.
Cultivate the community of investors by allowing them to interact and by communicating new projects and opportunities in a simple and easy way.
Digitise and streamline fundraising, document handling, KYC/AML etc. and free resources for other and more interesting tasks.
Strengthen the brand by opening up investment opportunities to a larger (and perhaps international) crowd and by exploiting network effects to create awareness.
Make it easy for investors to (automatically) reinvest returns into new projects, thereby keeping the invested money in circulation.
Crowdton is a crowdlending platform made by Smallbrooks for Obton Group Holding. Obton Group Holding holds Obton and Koncenton, some of Europe's biggest companies working with alternative investments within solar energy and real estate.
Crowdton's aim was to build a crowdfunding platform that allows people to invest in projects within sustainability and solar energy. Such projects are usually only available for big investors who can invest +750,000 DKK (100.000€) per project, but with crowdfunding it's possible for Crowdton's investors to invest as little as 10,000 DKK (1300€) per project.
The crowdfunding market for investment companies
The global crowdfunding market reached 372 billion USD in 2017. The global market for investments in real estate, energy, forest etc. is growing, and crowdfunding platforms are transforming the accessibility of investments and opening up the market to non-professional investors.
For now, the crowdfunding market is dominated by new platforms hijacking the markets and attracting new investors. With a dedicated crowdfunding platform, existing investment companies can not only retain their current investors and projects but can branch out to attract more investors, raise more money and digitise their processes.
HOW IT WORKS
The Smallbrooks service in the cloud contains all the features needed for crowdfunding. We can therefore create new crowdfunding platforms that are tailor-made for each customer while reusing functionality from a common toolbox and without having to reinvent the wheel each time. This makes it fast, easy and affordable for everyone to get their own crowdfunding platform. It's as simple as that!
Want to know more about how it all works?