Crowdfunding platform Röntgen doubled last year
Investors of the crowdfunding platform Röntgen (UAB "Trecia diena") raised a total of EUR 55.8 million last year, or 132% more than in 2022.The platform expects similar growth this year, and it intends to meet the needs of some of the largest investors and developers through a newly established fund management company.
The platform's record performance last year was mainly driven by continued growth in investor interest in fixed-income instruments with collateralisation and higher yields on offer. The average interest rate on the Röntgen platform was 9.4% last year, compared to 8.7% in 2022 and 7.5% a year ago.
"2023 was a challenging year for the Lithuanian crowdfunding market and therefore a good testing ground to try out our conservative lending policy, which has fully paid off and allowed us to double our growth. Investors were more cautious, lower risk was more attractive than high returns, and most preferred to lend to projects that were already under construction or completed, with a good margin of value," comments Martynas Stankevicius, CEO of Röntgen.
In total, the platform has already financed 31 unique projects in the past year, mostly real estate development businesses, but the company has also continued to strengthen its aviation financing portfolio. During the year, a total of EUR 2.4 million in interest was paid to investors, or 99% more than in 2022.
According to M. Stankevicius, in the second half of the year, the market expects a decline in base interest rates, which would also lead to a gradual decline in yields for those investing in business loans, but an increase in the activity of the property market and the need for developers to borrow.
"Crowdfunding continues to grow in popularity, with many investors coming to us this year with the realisation that we offer the kind of fixed returns that require more effort to achieve when investing, for example, in the stock markets. We therefore expect similar growth this year, but we are already seeing the limits of the supply of quality investment projects. The very largest developers simply do not "fit" within the maximum EUR 5 million allowed for platforms under the law. We want to finance the largest real estate projects, so we have applied for a fund management company licence. We hope that this will meet the needs of large investors who are willing to entrust us with the management of their larger capital, and that we will invite large developers to seek financing through Röntgen via the funds," says M. Stankevicius.
Currently, the Röntgen investor community consists of more than 18,000 members, 4,000 more than a year ago. Active since 2017, the platform passed the EUR 100 million capital raised threshold at the end of 2023.
Crowdfunding platform Röntgen doubled last year
Investors of the crowdfunding platform Röntgen (UAB "Trecia diena") raised a total of EUR 55.8 million last year, or 132% more than in 2022.The platform expects similar growth this year, and it intends to meet the needs of some of the largest investors and developers through a newly established fund management company.
The platform's record performance last year was mainly driven by continued growth in investor interest in fixed-income instruments with collateralisation and higher yields on offer. The average interest rate on the Röntgen platform was 9.4% last year, compared to 8.7% in 2022 and 7.5% a year ago.
"2023 was a challenging year for the Lithuanian crowdfunding market and therefore a good testing ground to try out our conservative lending policy, which has fully paid off and allowed us to double our growth. Investors were more cautious, lower risk was more attractive than high returns, and most preferred to lend to projects that were already under construction or completed, with a good margin of value," comments Martynas Stankevicius, CEO of Röntgen.
In total, the platform has already financed 31 unique projects in the past year, mostly real estate development businesses, but the company has also continued to strengthen its aviation financing portfolio. During the year, a total of EUR 2.4 million in interest was paid to investors, or 99% more than in 2022.
According to M. Stankevicius, in the second half of the year, the market expects a decline in base interest rates, which would also lead to a gradual decline in yields for those investing in business loans, but an increase in the activity of the property market and the need for developers to borrow.
"Crowdfunding continues to grow in popularity, with many investors coming to us this year with the realisation that we offer the kind of fixed returns that require more effort to achieve when investing, for example, in the stock markets. We therefore expect similar growth this year, but we are already seeing the limits of the supply of quality investment projects. The very largest developers simply do not "fit" within the maximum EUR 5 million allowed for platforms under the law. We want to finance the largest real estate projects, so we have applied for a fund management company licence. We hope that this will meet the needs of large investors who are willing to entrust us with the management of their larger capital, and that we will invite large developers to seek financing through Röntgen via the funds," says M. Stankevicius.
Currently, the Röntgen investor community consists of more than 18,000 members, 4,000 more than a year ago. Active since 2017, the platform passed the EUR 100 million capital raised threshold at the end of 2023.
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"Trečia diena" UAB, which operates the Röntgen platform, is a licensed crowdfunding platform. The platform is governed by the EU Crowdfunding Regulation and is supervised by the Bank of Lithuania in accordance with the law.