Democratizing the business loan financing one successful project at a time!
|Finance & Payments Digital Mixed B2B/B2C
|5 Jul 2017
- Funded more than €24.5M of business loans
- Growing 2x YoY!
- Lending activities in 8 markets, investors from 71 countries
- Operating profitably!*
With usual types of business financing becoming more and more restricted by the traditional funding organisations like banks or credit unions, the business loan sector is ripe for disruption.
Nordstreet aims to democratise business financing, allowing retail investors to invest in Real Estate (RE) backed business projects previously only available for investment funds or credit unions.
As the years progressed, they noticed that it was becoming an ever-growing hassle to get funding from traditional funding sources. All the while crowdfunding sector was projected to triple in size by 2025!
Seeing the immense opportunity ahead, the founders decided to tackle this issue themselves. 4 years later, the platform has funded €25M worth of business loans and is doubling each year!
Our current results at a glance:
860k Annual Revenue in 2021(2.1xYoY increase)
More than 11,000 people registered on the platform
Substantial accomplishments to date
The Co-Founders Tadas and Linas create Nordstreet! The team begins the arduous process of creating a platform that complies with all of the regulations imposed by the Bank of Lithuania. The same year Bank of Lithuania approves Nordstreet as a Financing platform.
Nordstreet platform begins to list business loans with real estate collateral! The first project was to the tune of €61,600. Nordstreet ends this year with a bang - we finance a real estate investment project worth (at the time staggering) €150,000!
Less than a year after listing the first project, Nordstreet has crowdfunded its' first million!
You'd be hardpressed to find a February as exciting as it was here in Nordstreet, as the platform has funded €5,000,000 worth of business loans! We also introduced Secondary market and automatic investment functions.
Say hello to Crowdsofts! Crowdsofts provides a fully integrated back end solution that helps new crowdfunding platforms get up and running quicker!
This year is packed full of achievements:
- Nordstreet is going global! We started financing projects in Spain and Norway.
- Investors have collected more than a Million Euros in interest!
- Our investors have invested more than €1.6M during August alone!
- We introduce first Buy-to-Let project to our platform.
- Nordstreet becomes a fully-fledged payment handling solution with NS PAY!
The majority of the company’s revenue is generated from funding fees paid by the borrowers for successfully funded loan on the Nordstreet platform. The success fee typically ranges between 3-6% which is calculated depending on the project’s risk, term and funding amount.
Nordstreet has additional revenue streams:
If borrower is delaying to meet their obligations, Nordstreet charges arrears (late payment fees) that are equally split between investors and the platform.
Nordstreet investors pay a 2% fee when selling their investments in Nordstreet secondary market.
Crowdsofts provides a fully integrated back end solution that helps new crowdfunding platforms get up and running quicker. We generate revenue from the initial sales and also charge platforms success fee for the funded amount.
NS PAY is a fully-fledged payment handling solution, used for investing in Nordstreet. We take a small fee for withdrawing funds from the NS PAY account.
Use of proceeds
It's important to note that Nordstreet is operating profitably! The company is doubling in size each year. Throughout the past 4 years, Nordstreet has created a winning team and we believe that we're more than capable to grow faster! .
70% of the raised capital will be used to increase the rate of customer acquisition.
20% will be used for further development of our services. These will consist of app development and new feature implementation to the Nordstreet platform
8% should cover additional operational expenses
2% is the safety margin for unexpected costs
*Based on unaudited management accounts.
The company has three outstanding loans raised via the Nordstreet platform:
1. €40,000 loan from at an interest rate of 10% per annum. The loan is to be repaid in full after 36 months, ending 04/08/2024.
2. €60,000 loan from at an interest rate of 9% per annum. The loan is to be repaid in full after 36 months, ending 02/04/2025.
3. €40,000 loan from at an interest rate of 7.5% per annum. The loan is to be repaid in full after 36 months, ending 04/08/2024
The funds raised from this investment round will not be used to repay these loans.
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