What do you do when there is a huge demand, a huge market, but no opportunity? Exactly. You create it. Joerg Bartussek, Lawyer, Digitalization Pioneer, and Co-Founder of Finnest held a captivating Fin-Ted Talk at the FinTech Austria MeetUp about the making of the largest crowdinvesting ever done in Europe.
First, let’s go back a step. FinTech is all about closing gaps with innovative state of the art Tech solutions. What problem does Finnest exactly solve? In Austria, the SME segment is the backbone of the economy. Most of the “Mittelstand” (midsized) companies didn’t have access to alternative ways of capital market financing except for classic banking loans. Why? Only a few could afford the cumbersome time-intensive process. Therefore, in 2014, the Co-Founders took the 180-step process of issuing a corporate bond, eliminated the unnecessary, and created a digital process of 10 clicks. Finnest was born: The largest pure digital corporate financer for successful “Mittelstand” in German-speaking countries. So was the access to corporate finance with market-based rating for the “Mittelstand” companies. And so was a crowdinvesting opportunity for the investor.
“We took the corporate bond issuing process, democratized it for retail customers, and made it very simple, very easy, and gave CFOs of Midsized-companies a tool to evaluate their market size.”Joerg Bartussek, Co-Founder on the mission of Finnest
Back to the largest crowdinvesting campaign with Falkensteiner Hotels & Resorts. “We really understand our customer well”, Joerg explains. And they really do. Whoever claimed that Finance is not for women and especially not elder women, had it all wrong.
And here is why: Meet Rosa, Finnest’s Persona.
Rosa is 60+, female, and highly probable an Academic, who has enough money to invest, but not enough to buy an apartment, for example. Rosa loves explanations but kept to a minimum on their website. Rosa loves security when clicking through. Rosa loves goodies when investing. This is exactly what Falkensteiner picked up on: On top of offering the annual interest rate to investors, Falkensteiner added a built-in loyalty management system consisting of vouchers. 65% of the investors selected the voucher option during bidding, and got a 50% bonus plus 6% (instead of the 4%) in vouchers in forms of vacation stays worldwide at the Falkensteiner Hotels & Resorts. A triple-win for the involved parties.
“This all came from asking what the market truly wants. Real people with real ideas who want to do something meaningful.”Joerg Bartussek, Co-Founder Finnest on their USP
Happy Rosa, happy Falkensteiner, happy Finnest.
Read more about the Finnest/Falkensteiner Campaign and browse through Crowdinvesting options here.