In this model of crowdfunding, contributors invest money in a business in return for a share of the business or profits.
Crowd-investing allows contributors to give money to a business in return for a share of the company or a share in its profits. Unlike traditional investments, sums disbursed may be small, starting at CHF 100 on some platforms. The investor’s decision-making power is often limited, however, in order to guarantee the freedom of the company’s management team to take action. The business model varies according to the platform: while C-Crowd allows anyone to invest, Investiere brings qualified investors together.
Via the Austrian platform Conda, the start-up sanSirro was able to raise EUR 348,000 with 243 investors in order to launch a line of smart sportswear that can record data such as your heartbeat, breathing or muscle contractions. The minimum investment was EUR 100 and contributors benefit from a return of 4.5%.
Becoming a co-owner
Crowd-investing also includes real estate crowdfunding. Specialist sites make it possible to bring investors together for a real estate project.
In the area of real estate crowdfunding, 25 co-owners came together around Crowdhouse to finance a house to the tune of over CHF 10 million, with 16 apartments in Obfelden, in the canton of Zurich. The minimum investment was CHF 100,000 and the return is estimated at 5.5% per year.
Crowd-investing platforms in Switzerland
Some of the main crowd-investing platforms active in Switzerland:
C-Crowd puts businesses in touch with potential investors who will become shareholders.
Investiere is the oldest and also the leading crowd-investing platform in Switzerland.
Companisto is a crowd-investing platform for European start-ups.
Conda is accessible to investors in Switzerland, Austria and Germany, with investment starting at CHF 100.
Raizers is a European crowdfunding platform.
A way to support selected local SME's looking to raise funds to generate growth.
Some of the main real estate crowd-investing platforms active in Switzerland:
Swiss-Crowd allows real estate entrepreneurs to find investors.
With Crowdhouse, investors can become co-owners of real estate with a minimum investment of CHF 25,000.