Companisto is an equity-based crowdfunding and crowdlending platform operating in Germany. Launched in 2012 in Berlin, it allows investors to invest in startups. Investors can choose to be lenders, receiving interest payments, or regular shareholders, who are entitled to their share in any profits their companies make.
Companisto has over 75 000 successful investors from 92 countries. Minimum investments are € 5 with no upper limits on how much funds a startup can raise. Lenders are offered fixed interest payments of up to 8 % p.a.. The minimum loan period for startups is 7 to 8 years whereas for growth companies it’s 3 or 4 years.
Investors choose in which startups or growth companies they wish to invest. Contributors then receive a share in the startup in return. As an equity investor you own part of these corporations, you receive your share in the company’s dividend payments as well as the value gains from successful businesses.
These are the users and investors at Companisto. Anyone above the age of 18 can invest in startups and become a companist.
Companisto requires a startup to present a business concept on how their operation will be a potential customer base. They are required to define their target market, competition, and market position. With very low minimum investment amounts, most people can participate.
Companisto offers a concept called “crowd voting”. Completion of a startup’s crowdfunding campaign will receive two-thirds of the companists total investment. The remainder is kept for protection against insolvency until a time the companists agree on a payout by majority decision.
Around 6 months later the investors then decide, through a majority vote, whether to pay out the remaining third or have it repaid. This feature provides companists with additional rights and influence on startups decisions, contributing to minimizing risk.
Benefits of investing in Companisto
Quality for businesses
Aside from long term financing, Companisto businesses receive excellent marketing tools. Startups can present themselves to a new audience and add value to their portfolio. They end up receiving publicity and marketing tools.
A great platform for startups
The Companisto model of participation provides start-ups with the necessary entrepreneurial freedom of action in terms of their operations. Due to low minimum investment, large numbers of people can participate. People who will have an interest in spreading the word in order to increase business awareness and, in turn, the value of their shares.
The bigger the startup’s fan base, the more successful the company can be. Only on Companisto do young people with a high internet affinity have the opportunity to show their support.
If the Companists participate themselves, they also have shared interests in the positive development of the company. Therefore, they are openly motivated to contribute and support the company in innovation.
There are no hidden fees as Companisto believes trust creates transparency. Investments opportunities are comprehensible and clear for startups and companies as well as for investors.
Although Equity-based crowdfunding carries a considerable amount of risks and may lead to complete loss of funds in the worst case scenario.
What distinguishes Companisto from other P2P platforms?
Companisto is one of the few crowdfunding platforms in Europe that facilitates direct investment in businesses. Investors get to secure a share in the startups and will all benefit from all profits and payments the business makes. This is a more risky approach than simple P2P lending, but also allows for an opportunity to get involved very early on in businesses that may grow exponentially.