Nordea today becomes the first bank in Finland to launch an equity-based crowdfunding service. Nordea Crowdfunding is an online meeting place for enterprises seeking financing and investors. It offers companies a flexible and structurally light financing model, and investors an opportunity to take part in interesting Finnish growth stories.
Nordea's crowdfunding service is equity-based, which means investors subscribe for shares in a company via a share issue. It is the only crowdfunding service in the market that is linked to the book-entry system.
- Private entrepreneurs are increasingly important for Finnish society, and they are seeking more versatile means to finance their business growth. We want to support the trend by offering alternative ways to find financing. Our new service will bring together companies seeking crowdfunding and investors interested in providing such financing, says Sampsa Laine, who heads Nordea’s Business Banking in Finland.
According to Laine, many companies have been contacting Nordea and expressing interest in the service even before its launch.
Easy-to-use digital platform brings together companies and investors
Crowdfunding provides companies a flexible and structurally light alternative for financing alongside more traditional means. It also carries a communal aspect, as it allows companies to test new ideas, engage their stakeholders, and grow their networks. For an investor who recognises the risks involved, crowdfunding offers a way to directly support new Finnish innovations and growth in Finnish companies.
- Nordea’s role in the service it to act as a mediator that provides an easy-to-use and informative digital platform that enables entrepreneurs and investors to come together. The service is linked to book-entry accounts, which helps the investors to keep track of all their investments, explains Sebastian Wikström, Head of Nordea’s Alternative Finance Solutions.
Wikström points out that there are always both risks and opportunities when it comes to growth companies:
- In the crowdfunding service, investments are made in unlisted growth companies where there is a high risk of losing the capital invested. On the other hand, for investors who understand this risk, crowdfunding offers an opportunity to take part in exciting growth stories and own shares in companies in which they truly believe. The minimum investment is often only 100 euros.
To find out more about Nordea Crowdfunding, go to the service’s website at www.nordea.fi/crowdfunding
Crowdfunding projects do not fall within the scope of Nordea's investment advice, nor will Nordea provide investment recommendations related to the participating companies, as Nordea will only act as an intermediary between companies seeking financing and investors.
The new Crowdfunding Act entered into force in Finland in September. The objective of the act is to clarify the responsibilities of various authorities in supervising crowdfunding, improve investor protection, and diversify the financial markets.
For further information, please contact:
Sampsa Laine, Deputy Head of Business Banking, tel. +358 50 555 9035
Sebastian Wikström, Head of Alternative Finance Solutions, Nordea Markets tel. +358 50 436 8694
Susanna Aarnio-Halme, Group Communications, tel. +358 9 42451006