Crowdberry, an equity based investment platform originated in this environment as a cooperation of the startup and innovation studio Launcher and Tatra Banka Private Banking to fill in a space in early stage startup financing. Co-founder Patrik Horný explains: ”Bottom line idea is to connect startups looking for growth capital with investors willing to invest into areas with higher risk. These investments on the other hand carry potential to multiply the value of invested capital.“
Thorough checking of companies entering the investment process is an important characteristics of the Crowdberry platform. Each company is subjected to the internal due diligence process concentrating on different areas of the particular business project such as market and its dynamics, competition, the team, scalability, historical and planned financial indicators and possible investment risks. Only startups which in expert opinion show the potential for further growth, so that the investment can actually help them to achieve their strategic goals and consequently to grow and raise their value in the coming years, are allowed to enter the platform.
Investment into a startup mostly means a long-term investment within several years horizon. Investors get their return usually by selling part or all of their shares, or by payments from the company profits. To increase liquidity, Crowdberry plans to offer a secondary market to its members where investors will be able to trade their startup shares among themselves.
A Crowdberry investor has an option to invest into an individual startup from 10.000 €. This enables to spread the overall investments into a portfolio of startups and diversify the risk of a project dropping out.
Needless to say that before the investment process itself, an investor has all startup business documents available and there is a possibility to meet with the startup’s founders in person to obtain more detailed information. Crowdberry provides investment consultancy for its clients as well as complex documents and legal essentials, such as assessments of a company, investment conditions, detailed investor’s rights, contracts between partners or shareholders and a new partnership agreement.