CONDA Capital Market: Digital platform opens up new ways for SME investments

*Marketing Content*

The opportunity to invest in SMEs and benefit from their returns was originally reserved for institutional investors, but the CONDA Capital Market platform now makes this opportunity available to private investors as well. Using regulated securities such as bonds, shares and profit participation certificates, investors can invest directly in SMEs, the heart of the German economy. This enables both attractive returns and the support of the local economy and innovation. The digital investment platform also offers an effective method of risk diversification, as investors can invest in a variety of sectors and projects.

Munich, 05-13-2024. The German SME sector, known for its high quality and innovative strength, forms the backbone of the German economy. Its close connection to employees and the regional economy, coupled with a long-term business orientation, is what characterises SMEs in particular. This is exactly where CONDA, Europe’s specialist for digital investments, comes in and offers its investors opportunities to invest in these companies.

Backbone of the economy

The German SME sector comprises a large number of companies that together generate more than half of Germany’s total economic output. Specifically, these include companies with an annual turnover of between one and 50 million euros and a workforce of between ten and 499 employees. These medium-sized companies play a crucial role in the labour market, providing around 60 percent of all jobs and around 80 percent of apprenticeships.

“The importance of SMEs for innovation and the international competitiveness of the German economy is immense, with a strong focus on quality, sustainability and long-term corporate strategies” says Dirk Littig, Co-Managing Director of CONDA.

Investing in quality and innovation

Investments in small and medium-sized enterprises (SMEs) not only offer the opportunity to generate attractive returns, but also make a significant contribution to strengthening the local economy. By investing directly in these companies, investors not only enable growth and the development of innovative products and services, but also promote the regional economy and labour market. This gives private investors access to a broader asset class in the German SME sector for the first time.

Spreading the portfolio risk

The key to success is provided by CONDA, whose CONDA Capital Market platform allows investors to invest in a wide range of SMEs easily and digitally. In addition to traditional financial instruments such as shares and bonds, it is also possible to invest in profit participation certificates and convertible bonds. Unlike most bonds, profit participation certificates offer investors not only an interest claim, but also a share in the success of a company, while convertible bonds can be converted into company shares at a later date.

The Munich-based brewery Giesinger Bräu also followed this example set by CONDA Capital Market. Through the financing mix of profit participation certificates with a 6% interest rate, the company intends to invest part of the sum in its own bottling plant. This variety of investment opportunities allows investors to make targeted investments in companies and projects that match their individual interests and risk profile. The diversification across different sectors, regions and financial instruments also allows risk to be minimised, as not all of the capital is dependent on the development of a particular sector or company.

For investors, investing in German SMEs through digital corporate financing offers attractive opportunities. In addition to fixed interest rates, additional bonus interest can be offered as a share in the company’s success. While the risks of a loan must be considered, they are in proportion to the opportunities for an above-average return.

“It is crucial that investors only invest in business models and companies that they really understand. Understanding what you are financing is fundamental to both managing risks and benefiting from the investments in the long term,” concludes Littig.

This information is for advertising and information purposes only, is non-binding and constitutes neither an offer to buy nor an investment recommendation and does not replace investment advice. The personal characteristics of the investor (such as experience and knowledge, investment objective, financial circumstances, loss-bearing capacity, risk tolerance) must always be taken into account when selecting the investment strategy or financial instrument. Your investment is not protected by the European Deposit Guarantee Schemes.