January 30, 2014 The first secondary market for crowdfunding created
The first secondary market for crowdfunding created – big improvements for crowd investors
Equity crowdfunding platform Invesdor and Privanet, a specialist in the trading of unlisted shares, developed the first secondary market for equity crowdfunding in the world.
One of the most commonly mentioned challenges of equity crowdfunding has been the lack of a secondary market for the unlisted shares acquired through crowdfunding. Due to the absence of such a marketplace, the selling of crowdfunded companies’ shares has been difficult. In practice, the only viable ways for investors to profit have been the sale of the target company or dividends. This has often resulted in potential investors being hesitant.
Invesdor and Privanet, both operating from Finland, are now launching the first secondary market for equity crowdfunding in the world. From now on, all companies that have raised crowdfunding via Invesdor can list their shares on the Invesdor list on Privanet’s marketplace.
By registering on Privanet’s marketplace, both Finnish and international shareholders can securely and easily buy and sell unlisted shares. This opens up new possibilities and freedoms for crowd investors, which is a necessary step for the development of crowdfunding.
– We are excited to be taking equity crowdfunding to the next level. With the establishment of a secondary market, crowdfunding can truly begin to soar. We have common goals with Privanet – to offer investors interesting investment targets and growth companies alternative avenues of financing – and our services naturally complement each other. We have high expectations, says the CEO of Invesdor, Lasse Mäkelä.
Privanet is an investment service company that specializes in the brokerage and analysis of unlisted shares. The company is supervised by the Finnish Financial Supervisory Authority. Privanet maintains an online marketplace where shares of many SMEs are traded.
– Privanet is known in Finland as the marketplace for unlisted companies, therefore it is natural that we provide a secondary market for crowdfunded companies as well. As a result of the financial crisis, traditional means of financing have been largely unavailable for small growth companies. We feel that crowdfunding is currently the means to give rise to new success stories, commented the CEO of Privanet, Kimmo Lönnmark.
Trading on the Invesdor list will be done in cooperation with the target companies. Trading is expected to commence this spring.
CEO, Invesdor Oy, tel. +35840-7533 844, lasse.makela(at)invesdor.com
CEO, Privanet Pankkiiriliike Oy, tel. +35850 67541, kimmo.lonnmark(at)privanet.fi
Invesdor in brief:
Invesdor is one of the leading equity crowdfunding services in Northern Europe. Invesdor seeks to spur economic growth by improving the chances of startup and growth companies to raise financing. We help equity-seeking companies and private investors interested growth companies to find each other online. Equity comes from investors all around the world. For more information on our company and services, please go to www.invesdor.com.
Privanet Pankkiiriliike in brief:
Privanet is a Finnish investment services company founded in 2000. Its operations are focused on unlisted companies. Privanet has a licence from the Finnish Financial Supervisory Authority to, i.a., offer investment services, broker securities and organize share offerings and emissions of bonds. Additionally Privanet is a Certified Adviser at the Nasdaq OMX First North. The company has offices in Turku and Helsinki, Finland.