Project guide: why was crowdinvesting chosen for funding?
We are often asked why crowdinvesting was chosen to fund the project "Duyunov's motors". Numerous private investors purchase shares in "Sovelmash" to later earn dividends from the company's operations or from selling their shares.
"Sovelmash" is implementing a technology and development type project. It is building a design and engineering technology department where innovative electric motors will be developed. The existing technologies and practices are not suitable for the project, they need to be changed. New facilities should be designed and built, process equipment should be developed and certified, and so on.
The cost of such a project is much higher than a traditional manufacturing business.
And the team of "Sovelmash" initially didn't want to be dependent on the usual sources of funding for Russian business.
• Banks offer unfavourable lending terms to budding companies that do not have substantial funds of their own. This is a big risk for projects, especially in the face of external crises. Because of this, many companies have had to suspend the construction of their enterprises in recent years.
• Large-scale investors fund projects in exchange for participation in managing the company. However, they may not understand the peculiarities of innovative businesses. The founders of "Sovelmash" want to independently manage their brainchild.
Crowdinvesting allows a project to be implemented in a more flexible and sustainable way than traditional funding methods in Russia offer.
The very fact that the construction of the "Sovelmash" D&E is already at the finishing stage indicates that the right method of funding has been chosen.
Thanks to crowdinvesting, you can become a co-owner of the "Sovelmash" engineering company right now or grow your investment portfolio. To do so, select and purchase an investment package by following the link.