First crowdfunding manager listed on Market Commission
Raizecrowd, a Portuguese fintech crowdfunding startup has been the first entity of its kind in Portugal to be registered on Portugal’s securities market commission CMVM.
The fund is now authorised to undertake the role of financial intermediary with an “added level of protection” both for investors and entrepreneurs given the “greater level of scrutiny and transparency” that it will be subjected to by the CMVM.
“The payment and interest rate conditions that the fledgling investment fund will have to pay the CMVM is to be set out in a contract which will be signed the moment capital from the sale of shares is secured,” states the regulator.
For the CMVM, this is the first signup of a crowdfunding platform management fund and a “further milestone in the CMVM’s regulation of Fintech companies in Portugal”.
Raize has raised over €14.2 million in capital earmarked for investment in SMEs. The entity believes that Portuguese SMEs should be independent and not dependent on banks to manage their business activities.
Raize charges interest on investment loans according to the level of risk after carrying out an evaluation with interest charged a between 3% and 6% for low-risk companies.
It is also supported by various business associations, including the Portuguese Chamber of Commerce and Industry, the Portugal Hotel Association (AHP), the Algarve Trade Association (ACRAL), the West Region Trade Association (AIRO) and the Lisbon Trade Association (AERLIS) among others.
The CMVM is an independent public institution with administrative and financial autonomy which supervises and regulates securities and other financial instruments markets (stock markets) as well as those that operate within those markets.
Raize has expressed its intention to be listed on the stock market as a Fintech Crowdfunding Platform to launch its own shares in the second of third quarter of 2018.