Nordstreet, a firm focused on democratizing the business loan financing “one successful project at a time,” has raised 103% (€309,926) of its €300,001 fundraising target via Seedrs from 119 investors with 27 days left in the company’s crowdfunding campaign.
Here are the business overview/highlights shared by Nordstreet:
- Funded more than €24.5M of business loans
- Growing 2x YoY
- Lending activities in 8 markets, investors from 71 countries
- Operating “profitably”
Located in Vilnius, Lithuania, Nordstreet operates in the Finance & Payments sectors (Digital Mixed B2B/B2C).
Incorporated in July of 2017, the firm reports a €16M pre-money valuation, Type Equity,
with Equity offered (1.90%), a €2.24 share price, and Tax relief N/A.
Key features are as follows: Secondary Market; Seedrs nominee min. €11.20 +.
As noted by the firm:
“With usual types of business financing becoming more and more restricted by the traditional funding organizations like banks or credit unions, the business loan sector is ripe for disruption.”
Nordstreet added that they are focused on democratizing business financing, “allowing retail investors to invest in Real Estate (RE) backed business projects previously only available for investment funds or credit unions.”
As the years progressed, they noticed that it was “becoming an ever-growing hassle to get funding from traditional funding sources.” All the while crowdfunding sector was “projected to triple in size by 2025.”
The company further noted:
“Seeing the immense opportunity ahead, the founders decided to tackle this issue themselves. 4 years later, the platform has funded €25M worth of business loans and is doubling each year.”
Nordstreet has shared its current results at a glance:
- 13,300+ users
- 860k Annual Revenue in 2021(2.1xYoY increase)
- More than 11,000 people registered on the platform
While commenting on their monetization strategy, the company noted:
“The majority of the company’s revenue is generated from funding fees paid by the borrowers for successfully funded loan on the Nordstreet platform. The success fee typically ranges between 3-6% which is calculated depending on the project’s risk, term and funding amount.”
Nordstreet has additional revenue streams:
“If borrower is delaying to meet their obligations, Nordstreet charges arrears (late payment fees) that are equally split between investors and the platform.”
Nordstreet investors “pay a 2% fee when selling their investments in Nordstreet secondary market,” the update noted.
Crowdsofts offers “a fully integrated back end solution that helps new crowdfunding platforms get up and running quicker.” They generate revenue from the initial sales and also “charge platforms success fee for the funded amount.”
NS PAY is “a fully-fledged payment handling solution, used for investing in Nordstreet.” They “take a small fee for withdrawing funds from the NS PAY account.”
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