Bergfürst, a German investment crowdfunding platform that also incorporates an electronic trading platform as a secondary market, has received a banking license from Finanzdienstleistungsaufsicht (BaFin). This new license comes two years after receiving a license for providing financial services as the company seeks to combine the traditional world of finance with the new disruptive approach of crowdfunding. Crowdfunding in German has experienced rapid growth in the past two years leveraging regulatory loopholes to ease the process.
Founded by CEO Dr. Guido Sandler and CTO Dennis Bemmann the young company sees this strategic step as a combination of the benefits and virtues of traditional banking and the modern spirit entrepreneurial finance. Bergfürst states they are the first regulated platform in Germany and they now allow investors to purchase equity in young companies and real estate for as little as EUR 250. The company will now operate at Bergfürst Bank AG.
Bergfürst explained their approach stating;
“Our vision from the beginning was to unite the virtues of traditional banking with modern spirit and the associated “lessons learned”. This has led to the merger of the core competencies of old and new financial world: seriousness, reliability and security are coupled with transparency, modern online structure and self-determination of the investor. “
Guido Sandler commented in the announcement;
“New Investing provides business owners and you, our investors the space to successfully combine the advantages of banking with a leaner online structure. New Investing allows disruptive business models that have their roots in the 21st century to thrive in a regulated environment. We bring together the best of both worlds. With an emphasis on financial techniques addressing the mistakes of the banking crisis and the disaster of the new market, New Investing makes all products available to retail investors who previously could not get into this type of investment.”