You broker investments directly into companies. Where are you on the spectrum between passive investing and entrepreneurship?

I would create a whole new category for us. We focus on the Czech and Slovak market, on growth capital. Our investors become co-owners of projects and participate in the growth of companies. They don’t buy shares from other holders, they put in capital directly.

Who are your clients?

We try to reach those who are eager to start investing, as well as those who have already done something in this field and are looking for new opportunities. The third group consists of more passive investors looking for specific opportunities that fit into their portfolios. We like to work with investors who are not only looking for capital appreciation, but also want to participate in the growth of the company, be its ambassadors, and support its image. This is extremely important for the development of local businesses.
Translated with DeepL.com (free version)

Do you also deal with the issue of exits from investments?

Yes. We ourselves try to provide know-how to companies to make them marketable or ready for further investment capital – both local and foreign.

So you also work for clients on a consultancy level?

We represent investors and offer them the expert knowledge and extensive experience of our team in various segments. By the way, in the Czech Republic and Slovakia there are very few experts focused on the growth of local or global companies.

Investments always go into primary underwriting?

The principle is roughly as follows: Investors acquire a stake in a company or real estate project and make growth capital available through their investment, which can be directed into new technology, building improvements, hiring people, or other forms of expansion. Often investments are structured to include various investor protection mechanisms, such as liquidity preference on sale and other specifics.

Standard investments are hugely overregulated. How is it for you?

The situation is different for alternative investments, with a major change to the regulatory framework due to take effect this November in the form of a new European directive governing the conditions for collective investment platforms in the EU, which should unify and improve conditions for both firms raising capital through crowdinvesting and investors. We are in favour of the regulation and consulted the National Bank of Slovakia ourselves when setting up the platform. Rather than legislation, what limits us in local markets is the continuing distrust of investment, probably stemming from the experience of the 1990s. In the USA, young people have been taught how to invest in high schools for decades. If Czech real estate is invested in by South African or other foreign funds motivated by the prospect of higher returns, why can’t Czechs and Slovaks?

How did Crowdberry come to be?

We founded the platform in 2015 in Slovakia as a professional digital marketplace for entrepreneurs and private investors to provide attractive opportunities and support the growth of innovative Czech and Slovak companies. Today we have more than 3,500 users and over 500 investors who have invested more than 30 million euros in 19 companies.

Has covid affected your business?

I see Covid as a reboot. A large part of our daily activities have moved online and we have all received “training” not only in the use of new technologies, but also an impulse to take a different view of capital management. The change is wide-ranging, global and really significant. Many investors have been cautious, but others have been preparing investments that are becoming relevant now. I think the situation could help shift some capital from current accounts to investment, especially in the context of potentially rising inflation.

You have opened two funds, one for startup companies and one for real estate. For the convenience of investors or for diversification?

For both. Specifically in the case of the real estate fund of qualified investors CB Property Investors, the reason was also that some potential investors do not want to study project prospectuses for a long time. They trust us and want us to choose the best option for them.