European alternative lender Mintos will launch its first-ever crowdfunding campaign later this month through equity crowdfunding platform Crowdcube.
The campaign is part of a larger fundraising round planned with venture capital firms. It will commence in the second part of November, and investors will be offered a limited amount of share in the company in return for their support.
“Demand for alternative investments has grown, since the interest rates on deposits have been persistently low and equity markets have become crowded—leaving retail investors with very few good options,” said Martins Sulte (pictured) chief executive and co-founder of Mintos.
“In the past, when retail investors did look at alternative investments, they often found that these came with high minimum investments and high fees that kept them out of the mass market.
“Current demand is for modern solutions that are both accessible and not correlated with traditional assets. Mintos’ goal is to offer loans as a new alternative investment type, fitting retail investor needs.”
Mintos has estimated that retail investors in the European Union hold investments worth €7trn (£6.3trn). The platform has also cited recent research that predicted that the global crowdlending market is set to grow at a compound annual growth rate (CAGR) of 29.7 per cent – from €57bn in 2019 to €472bn by 2027.
“Our investor community has played an important role in our success so far—we appreciate it very much, as it constantly drives us forward and allows us to come up with innovative new solutions,” added Sulte.
“To say thank you, we have allocated a limited part of this round for crowdfunding and give investors on Mintos an opportunity to become a part of our growing company.”
To date, Mintos has raised €7m from angel investors to fund its growth.