CONDA Capital: newly established subsidiary of the CONDA group secures pioneering position with ECSP license
„Cross-border Investing“ – with this vision, CONDA was founded as a crowdfunding platform in Austria ten years ago. Now, the newly established subsidiary of the CONDA Group, CONDA Capital, has become one of the first companies in the DACH region to obtain authorization as a „European Crowdfunding Service Provider.“ A milestone for the CONDA Group, paving the way for pan-European digital financing. This allows investors within the EU to now invest in a variety of projects, benefiting companies through an expanded market.
Vienna, September 28, 2023. With the newly established subsidiary named CONDA Capital, the CONDA Group has achieved a significant milestone: It has been granted authorization in accordance with the European Crowdfunding Service Providers Regulation (REGULATION (EU) 2020/1503 on European Crowdfunding Service Providers for Business). This authorization enables CONDA Capital to operate as a crowdfunding service provider in compliance with ECSP regulations throughout the EU. The regulation was adopted in the fall of 2020 with the aim of creating a unified legal framework for crowdfunding in the European Union. This was intended not only to strengthen the European internal market but also to realize the desired capital market union and create more transparency and standards to enhance investor protection.
Expansion and New Opportunities
„With the introduction of a unified legal framework through the EU ECSP regulation, new doors have opened for us as a crowdinvesting platform,“ emphasizes Daniel Horak, founder and CEO of CONDA. In addition to the ability to now support cross-border crowdinvesting projects throughout the EU, the ECSP Regulation now allows the offering of securities and prospectus-free issuances up to a value of 5 million euros. Through CONDA Capital, the CONDA Group intends to offer a wide range of new asset classes, including stocks, bonds, and preferred shares, with an issuance volume starting at 1 million euros. The focus will now be on SMEs and late-stage scale-ups. In particular, CONDA Capital can now, under European regulation, offer digital equity investments in mid-sized companies.
Diverse Investment Opportunities and Strategic Partnerships for Sustainable Growth
With the ECSP license, CONDA Capital aims to target various investor groups more effectively and offer them new investment products. Horak explains, „Our goal is to reach a broad spectrum of investors, from retail investors to professional and semi-institutional investors. We want to serve them all with optimal solutions.“ This strategic expansion pertains exclusively to the new CONDA Capital platform, while the existing offerings „CONDA Crowdinvesting Austria,“ „CONDA Crowdinvesting Switzerland,“ and „CONDA Crowdinvesting Germany“ will remain for regional crowdinvesting campaigns under local regulation. Horak sees this step as a huge opportunity: „Under the ECSP license, we can offer a solution that allows products to be offered both locally and internationally.“
Responsibility and Vision: A New Chapter for CONDA
With the newly acquired ECSP license for CONDA Capital, the CONDA Group finds itself at an important juncture in its development. „We are aware that this is a significant responsibility, and the oversight by the FMA underscores the security and transparency of our new investment solutions at CONDA Capital,“ says Horak. With an optimistic outlook for the future, he adds, „We are entering a new phase where we have the opportunity to foster innovations and contribute to the realization of sustainable projects. It’s an exciting time, and we are eager to see what the future holds.“