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Why does the willingness of companies to be transparent strengthen trust in the crowd investing offers?

SMARTeFunding@Solutions

Transparency creates trust – trust creates sales!

Since the amount of the smallest Investor Protection Act in July 2015, Elias Haddad (Head of Operations at eProcessing GmbH) has been working on technical processes to map alternative financing instruments in a digital and user-friendly way. In the course of his work, he has already assisted a large number of companies in raising capital digitally in their label. Whether with start-ups, project sponsors, or issuing houses – if you ask Elias Haddad, the issue of trust in the digital offering to the capital-seeking company has always been relevant for the successful placement of funding. If a company needs money for its project and is willing to provide a monetary consideration, then it can turn to the crowd. In this principle of financing, there are a large number of bakers who want to support a project idea and profit from the return. Through crowd investing, investment products are offered, whether by start-ups, project companies, or even established companies (e.g. issuing houses), just as investors receive from their bank or through investment brokers. Only the form of distribution is different. And since this form of distribution is digital, investors need to find confidence in this young form of investment. It is important that both the platform through which the transaction is conducted and the issuer (provider) are reputable and can also convey this seriousness through their presence on the Internet. Here, investors look, for example, at the people who stand for and work for the company, at the experience, awareness, and popularity (including social media) as well as the company´s presence and transparency on the net. In this way, investors not only survey the product but also gain a sense of confidence in the digital investment. The modern investor informs himself and is thrown back in his maturity, since he without direct address and education by a salesperson, decides on his investment. For this reason, it is important to gain the investor´s trust through the greatest possible transparency. At the investromarket.de, investors will find a magazine and marketplace for digital, cross-platform offerings of prudentially regulated investments. The aim is to gain the trust of investors through transparency about the investment products, thereby helping both sides to succeed. The method for the analysis of the investment products is an issuer interview, which gives the information about the transparency of the enterprises by purposeful questions and is accessible to the investor. Investormarket.de awards each issuer a transparency seal, analogous to the number of questions answered, i.e. the company´s willingness to the transparent. In this way, the investormarket.de site is not only a source of information for investors, it also helps issuers to identify and fill potential gaps that could negatively affect investor confidence. In addition to this, members of the investor market community can publicly share their experiences and opinions on each project entry. The seal is thus assistance for the investor, with the search of the correct Investment, and offers to the issuers an advertising possibility for their product. Thus, everyone can benefit from the seal, because today´s transparency is tomorrow´s profit!

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