Through Tessin you can choose to crowdfund as an investment form when you want to invest your capital in real estate projects. With crowdfunding, private individuals, together with others, can invest less sums in several real estate projects than before because our technical platform enables management of many but smaller investors. Additionally, via Tessin companies can choose to apply for funding for their property project through crowdfunding, and in doing so they receive access to a bulletin board where they present and market their project, its plan and terms, and share information about their business.
By registering an account with Tessin, you can choose to crowdfund for real estate projects as an investment. You have probably heard about crowdfunding previously. Traditionally, a private individual or company starts a crowdfunding project to raise funds for a project or specific goal. However, a new form of crowdfunding has since emerged. In foreign markets this is referred to as equity crowdfunding or crowdfunding investment, which means that investors who invest together receive shares in the project and the opportunity for a return on their investment.
Crowdfunding is a natural fit for the real estate industry (international term: real estate crowdfunding) and the reason for this is that the real estate industry often calls for a wide network of contacts and a lot of capital to invest in housing. Now, platforms like Tessin are used to market real estate projects seeking funding through crowdfunding and allow individuals to register their interest in various projects and invest in them together with others. In order to start investing through crowdfunding as an individual you need to register an account, which is required in order to receive information about the projects advertised on the bulletin board.
Tessin makes equity crowdfunding possible for companies through its digital platform, a bulletin board where real estate projects are published. The project’s owner can be a new player in the market as well as a well established company. Companies wishing to raise capital through a larger proportion of investors offer investors some form of share ownership in the form of, for example, preference shares or interest on a crowdfunding loan. For regulatory reason, the number of crowdfunding investors at Tessin is limited to a maximum of 200. Crowdfunding is classified as a high-risk investment, whether it involves investment in the form of debt securities or preference shares, simply because projects marketed on crowdfunding platforms are often in a early stage and in many cases do not meet the banks’ criteria for financing. However, high risk also means unusually high returns when it comes to crowdfunding investments with Tessin. Nevertheless, be advised that all or part of the capital you invest may be lost regardless of the type of investment and it is important that you as an investor understand and read the information that the projects share when they are published.
For companies, crowdfunding means not only the possibility of funding that otherwise would not be possible but also an opportunity for extra visibility. Many of those who invest through Tessin can in turn become ambassadors for the company as they invest in its additional projects. Tessin's network consists of property-intensive and resource-intensive investors, which could very well be future customers, suppliers, and partners. Do you think your company can benefit from crowdfunding? Learn more about how to apply for funding with Tessin and see your real estate project become reality.