Recrowd

Basic information

For Investors

What happens if RECrowd ceases to operate?

If RECrowd were to cease operations, the details of how investors' funds are protected are not explicitly stated in the available information. However, as a general practice in the industry, platforms often have measures in place such as holding investments in a separate legal entity or having a wind-down plan. Since RECrowd is not regulated by a financial authority, as there is no current regulatory framework for real estate crowdfunding in Austria, the level of investor protection may differ from regulated platforms.

Why do companies borrow from RECrowd?

Companies choose to borrow from RECrowd because it provides an alternative funding source to traditional financial institutions. It allows real estate companies, especially those operating in Italy, to present their projects to a wide base of investors on the platform. RECrowd offers four types of projects that vary in risk, minimum capital, duration, and return, catering to different investor risk profiles. The platform also facilitates personalized negotiations between the company proposing the project and the investor, which is a unique feature that allows for the negotiation of the interest rate.