Multiple New Loans Fully Subscribed!
We haven’t been sitting still the last few weeks and several loans were published on our Max Crowdfund platform, which were all subscribed successfully, and the loans ranged from 10% to 12% per annum. More similar loans are expected shortly.
Saturday, the 4th of September, three loans went live at 12.00 CET, but unfortunately, we were the victims of a DDoS (distributed-denial-of-service) attack. Our servers were completely overloaded with connection requests. This meant that it wasn’t possible to invest in our loans for around one hour. Even though it is almost impossible to defend against a DDoS attack, and this was out of our control, we are still sorry for everyone involved and for everyone who missed out on the loans as a result.
In total, we raised €1,683,900 throughout August on Max Crowdfund!
We are continuously performing due diligence on new real estate investment opportunities. Once the fundraisers have passed our rigorous due diligence processes and our Investment Committee has approved the project, the opportunities will be published on the platform. As a result, there are a lot of new loans in the pipeline.
So keep an eye out for our newsletters and for news on our website!
Money Raised In Our Equity Round
Recently we completed our equity round and it was a great success as a total of €2.75M was raised. There was a big investor who wanted to invest €1.5M. This would have meant that the round was fully subscribed, but he unfortunately could not free up the money in time. As such we are considering to open up the equity round again during October to complete the final €1.5M. More about this in the next weeks.
The funds raised during the equity round is for the further development and expansion of Max Crowdfund, which is going very well indeed.
However, we do not need all the funds raised right now, which means we have a considerable amount of money sitting in the corporate account. In the Netherlands the banks charge a negative interest rate on balances over €100,000 and this is costing quite a bit of money.
To avoid further costs, and to speed up the growth of Max Crowdfund, we have decided to invest part of the money in loans on the Max Crowdfund platform under the following conditions:
- Only loans with an interest rate above 8%
- Only loans with a maximum term of 12 months, so that it remains semi-liquid
- No more than €100,000 per loan
- No more than 25% of the total amount
- We will not invest during the private round and will only invest after 15 minutes of the loan going live
We will also ensure there is always a 1-year cash flow reserve in the company account to ensure there will not be a shortage of funds.
New Rules On Max Crowdfund
Dutch regulations currently do not take into account so-called qualified/accredited investors. This means that an individual is allowed a maximum of €80,000 in outstanding investments at any time. However, if you have a joint bank account this amount doubles to €160,000. You can request to change your individual account to a joint account on Max Crowdfund.
If you have an investment company, such as a financial holding, these limits do not apply.
There is another exemption rule when one invests €100,000 or more in a single loan. In the case of a €100,000 investment the amount does not count towards the regulatory maximum. So one could invest 4x €20,000 and than 5x €100,000 and the maximum would still “only” be €80,000.
You can read this and more in an interesting blog we wrote about some frequently asked questions we received from our investors and fundraisers.
A Small Update Of Max Crowdfund New Zealand
We have a new update from our Max Crowdfund platform in New Zealand.
The first loan in New Zealand will go live soon. Unfortunately not for users of maxcrowdfund.com, but a nice step in our international ambitions!
A Succesfull Event at Zuytland Buiten
On Saturday, the 28th of August, we organized an event on the recreational park Zuytland Buiten. As you may already know, we are one of the parties responsible for the sale of the recreational villas.
With the event, we wanted to make more people aware of the sale and show the park’s beautiful surroundings. Both the developer and our team considered the event a great success!
The Max Property Podcast
In August, we started the Max Property Podcast. The reason why we began a podcast is to keep our listeners up to date on the most interesting trends in the real estate, finance or technology industries.
You can listen to the podcast here.
Written by: Julia van der Kooij