Editor’s note: This article was first published in August 2012, and the funded amounts (€5,000 to €600,000), minimum tickets from €1,000 and fees (€50 for entrepreneurs, €20 for investors) describe the platform at that date. Investment crowdfunding in Spain has since been regulated by Law 5/2015.
With funding for entrepreneurs’ projects in short supply, collective investment platforms such as Iverem are springing up: places where entrepreneurs and investors come together. The entrepreneur only has to present the project, and investors or anyone else willing to take part can contribute, starting from the minimum amount the entrepreneur has set.
If all the figures on the platform are accurate and genuine, I’m pleasantly surprised by the number of projects that have already been fully funded, with amounts ranging from €5,000 up to €600,000 in some cases. There are also others above €2 million that already have 50% of the capital they need. In some of these projects you can invest from €1,000.
How does the platform work?
Entrepreneurs fill in a form with their contact details and set out their business ideas along with their business plan. Each one states how much capital they need and the minimum investment per investor.
The investor simply chooses a project they like and are willing to put money into. Once interested, they make a reservation as an investor. The platform sends them the entrepreneur’s details, and the investor gets in touch to try to agree on the terms of the investment: the type of involvement, the return on the investment, and so on.
How much does it cost to use the platform?
The platform doesn’t charge a commission based on the size of the project or the investment. It only charges the entrepreneur €50 to list the project and the investor €20 to reserve the investment. The final terms and agreement are then settled between entrepreneur and investor, and the platform plays no further part.
See also: Business: if you’re going to fail, this is the way to do it
The projects are remarkably varied, from brick factories and rehabilitation centres to tourism startups and even inventions such as a hands-free umbrella. So if your project stands out, you probably won’t have trouble finding someone willing to fund your company.
And small investors who’d like to take part in a business project may well find an idea that appeals to them.
Featured image: Tech.Co, CC BY-SA 2.0, via Flickr.
