Project guide: Why has crowdinvesting been chosen as a funding method?
We are often asked why we have chosen such an unconventional funding method for Russia in "Duyunov's motors" as crowdinvesting. Many private investors buy shares in "Sovelmash" in order to receive dividends later from the company's operations or the sale of shares.
"Sovelmash" is implementing a technology and innovation project. Specifically, it is building a design and engineering technology department, where innovative electric motors will be developed. The existing technology and attitudes are not suitable for implementing the project; they need to be changed. We need to design and build new facilities, develop and certify process equipment, and so on.
The cost of such a project is much higher than a traditional production business.
At the same time, from the very beginning the "Sovelmash" team did not want to depend on funding sources that are customary for Russian businesses.
• Banks offer unfavorable loan terms to emerging companies that do not have their own large funds. This is a big risk for projects, especially in the context of external crises. Because of this, many companies had to freeze the construction of their facilities in the last 2 years.
• Large-scale investors fund projects in exchange for participation in managing the company. At the same time, they may not understand the peculiarities of innovative business. The founders of "Sovelmash" want to manage their brainchild on their own.
Crowdinvesting makes it possible to implement the project in a more flexible and sustainable way than with traditional funding methods for Russia.
The very fact that the "Sovelmash" D&E construction is already in its final stage speaks volumes about the correctly chosen funding method.
Thanks to crowdinvesting, you can now become a co-owner of the "Sovelmash" engineering company or expand your investment portfolio. To do this, select and purchase an investment package.