Whenever we publish a new loan on our Max Crowdfund platform, the loan is always on our website on ‘coming soon’ for a couple of days (at least 48 hours). The AFM legally determines this, which gives all the investors the chance to do their own due diligence. So that they can make a well-considered choice if they are investing in the loan or not. This is also the moment that the ‘Private Round’ starts.
A loan may still show ‘coming soon’, but people are already investing in the loan. We often get the question of why and how this is possible and if there will be enough space for everyone to invest. This short article will explain how people can invest in a loan during the ‘Coming soon’ phase.
The Private Round
Every time we have a new loan on our website, we will send out a newsletter to write the most important details of the loan. This will be the interest rate, the term of the loan and the reason why the fundraiser needs the money.
When the loan is published on our website, the private round starts. The fundraiser gets the opportunity to invite friends and family to invest in their loan. Besides, the fundraiser can decide how long the private round will take. The only requirement is that it lasts at least 48 hours.
We always keep an eye on the investments in the private round because we want to give our investors the chance to invest in the loan. But rest assured, a loan will never be fully subscribed before going live on our website.
So, from now one when we mention the ‘private round’ in our newsletters, you know what it’s for. Besides, you don’t have to worry about investing in a loan. We will make sure that there is enough space left for our investors.
Written by: Julia van der Kooij