Company release 1 September 2016
- Fellow Finance has opened a crowdfunding service intended for small and medium-sized companies.
- Fellow Finance is the first platform in the Northern Europe that offers loan-based crowdfunding for both companies and consumers.
- In Fellow Finance’s web service, private customers and companies meet investors from 35 countries who finance loan applications.
Fellow Finance has opened a new loan-based crowdfunding service that gives small and medium-sized companies an access to a new financing channel. In the service, companies can apply for financing for growth and investments from Fellow Finance’s investors. Crowdfunding as a form of financing SMEs is increasing all over the world. The popularity of crowdfunding has also increased quickly in Finland. Different types of projects were financed with approximately with EUR 85 million through crowdfunding in 2015. Fellow Finance has intermediated loans for consumers through its service for EUR 40 million during a period of 12 months. Opening a financing service for companies stems from the needs of Fellow Finance customers and with the new Crowdfunding Act established legal framework for the operation has been established.
“We have already received requests and inquiries from our clientele for a long time about whether we could also start financing companies. Many of our customers are either current or former entrepreneurs who understand the financing challenges faced by Finnish SMEs in different phases of business. They have a strong desire to finance other entrepreneurs and offer promising projects the chance to really take off”, says Jouni Hintikka, CEO of Fellow Finance.
Crowdfunding is a way of obtaining financing for a company or project from many investors. It can take the form of a loan or shares. Fellow Finance’s crowdfunding service is loan-based crowdfunding, i.e. the investor lends money to the company with an ordinary bond. The new Crowdfunding Act in Finland will enter into force at the beginning of September, establishing rules for crowdfunding, improving investor protection and diversifying the financing market available to SMEs.
“Crowdfunding is an excellent additional financing channel for companies in addition to bank financing and public channels. It allows SMEs to apply for market-based financing from investors in a light, flexible way, which has earlier only been possible for large-scale companies in the form of bonds. The new legislation offers a good opportunity to develop an alternative financing market for SMEs, which has already radically changed the financing of the entire SME sector in the United Kingdom and the United States”, says CEO Hintikka.
Jouni Hintikka, CEO, Fellow Finance Oyj, Tel. +358 40 5855 009, jouni.hintikka(at)fellowfinance.fi
Fellow Finance – Crowdfunding for People and Businesses
Fellow Finance Oyj is the largest crowdfunding service in the Northern Europe and the first one that offers both peer-to-peer-lending service to consumers and loan-based crowdfunding to companies. Fellow Finance has intermediated loans for over EUR 72 million and the service has 104,000 users from 35 countries.
Read more: www.fellowfinance.com