The partner of the Stock Exchange in this project will be one of the leading platforms of this kind in the world – the Estonian Funderbeam, recently pronounced the best Fintech company in Europe in 2017.
Unlike IPOs, this platform is primarily meant for startups and businesses which find it harder to reach the capital
and which lack options for more conventional forms of financing.
As Sinisa Krneta says for eKapija, the minimum amount of capital needed for a company to list on the Stock Exchange is one million euros, along with adhering to all the requirements of reporting and corporate management, which is often too demanding even for medium companies.
– For this reason, with the use innovative technological solutions, the platform offers to smaller companies and quality business projects the possibility of being financed by professional and experienced investors, which enables the provision of advice and the transfer of knowledge from experienced business people to young entrepreneurs, in addition to the money – he explains.
The Zagreb Stock Exchange has a positive experience with this kind of cooperation. In late 2016, together with its Estonian partner, it founded Funderbeam South-East Europe, in which its ownership amounts to one fifth.
As the Zagreb Stock Exchange says for eKapija, in the first ten months of 2017 alone, over EUR 2 million was gathered from investors from all over the world through the Funderbeam SEE platform for four Croatian startups and SMEs
– With this model of finance, the Croatian market gained a new class of property – investing in startups, and the excellent results of Funderbeam SEE in its first year of operations show that our market has a considerable potential for development of startups along with adequate financial support by investors – the Zagreb Stock Exchange says.
Although this is a risky form of investment, they add, Funderbeam SEE features the highest degree of investor protection possible and the obligation of reporting by companies following the gathering of the funds.
At last year's conference of the Belgrade Stock Exchange
, one of the heads of Funderbeam, Urmas Peiker, said that the establishment of one such system often requires the harmonization of regulations in certain states.
– We base the activities of the Funderbeam SEE platform on the fact that this form of financing is not subject to the existing regulations, for which an expert opinion of the regulators was necessary, which we've obtained – the Zagreb Stock Exchange says.
When it comes to the realization of projects aiming to facilitate the financing of small and medium companies in Serbia, the Belgrade Stock Exchange says that key incentives need to come from the side of regulation and tax authorities.
– With great gratitude, above all to the National Bank of Serbia, it is my pleasure to point out that a certain set of questions related to the placement of funds and the treatment of financial accounts has already been solved, but there still remain a lot of challenges in the domain of registration procedures and the tax administration that need to be solved – Sinisa Krneta says.