FINREG PARTNERS assisted its client, Investown, in obtaining the first crowdfunding licence in the Czech Republic from the Czech National Bank under the European Regulation on crowdfunding service providers.
The Regulation distinguishes between two categories of crowdfunding: investment crowdfunding and credit crowdfunding.
Investment crowdfunding operates on the principle of matching the interests of investors and project owners, allowing the investor to acquire a direct stake in the project owner, such as through shares or other participating securities. This type of financing is rare in the Czech Republic, and according to available information, no one has applied for it with the CNB thus far.
Credit crowdfunding, on the other hand, involves matching the interests of investors and project owners, with the investor providing a loan that the project owner is obliged to repay, either in full or in instalments, after a certain period. In the Czech Republic, real estate investment platforms are particularly popular in this area.
Investown has been licensed for credit crowdfunding, making them a provider of crowdfunding services to the extent of enabling lending.
We are proud of the innovative approach taken by our entire team, who comprehensively supported the client, prepared all necessary documents, and actively communicated with the regulator throughout the licensing process.
Congratulations to Investown, and we wish you great success in the next phase of your business!
