Due to the issues with traditional financing methods, SMEs and startups frequently rely on venture capitalists (VCs) and business angels for investment. While VCs and business angels are increasing in both number and approachability thanks to technology, a financing gap remains.
The figure above presents the current and projected state of raising investments via various methods. Alternative financing is closing a significant gap, reducing pressure on traditional financing models and lending a helping hand to innovative SMEs and startups.
In Europe, the UK leads the way with 94 peer-to-peer lending platforms, followed by France (49) and Germany (35) (Cambridge Centre for Alternative Finance, 2016). Large market potential exists in Central Europe, where the concentration of similar platforms is rather low. However, it is estimated that over $90 billion in investment will flow to these alternative platforms by 2020. Considering current growth rates, this may even be an underestimation (The World Bank, 2013). By now, it should be evident that alternative finance is on the way to become the primary source and method of raising investments.
A decentralized network protocol for issuing and managing tokenized equity offerings of SMEs, startups and real estate projects .
CONDA is closing the funding gap described above by creating a decentralized network protocol built on the blockchain to benefit companies seeking funds, investors looking for investment options and other platform operators. This technology allows anyone to securely and transparently invest in companies around the world in accordance with regulatory requirements.
With the CRWD Network - a network of crowdfinancing platforms - the power of the crowd will reach its full potential by being fully decentralized, community-driven, transparent and boundary-less, meaning there is no need for intermediaries between the network’s participants.