European licence for new Bolero Crowdfunding platform
Bolero Crowdfunding has today launched a brand-new, fast and powerful platform that fully complies with the relevant European regulation.
The design and underlying blockchain technology of the new platform make it an efficient and user-friendly tool for investors and businesses alike.
The new platform will enable Bolero Crowdfunding to provide a high-quality service and further convenience to its customers.
New Bolero Crowdfunding platform complies with European rules
A European regulation on crowdfunding platforms has been in place since 10 November 2023. European Union rules make it easier for crowdfunding platforms to develop and offer their services across national borders under a single regime. For investors and businesses, especially start-ups, they improve access to this innovative form of finance. For investors, they provide better protection and a higher level of guarantees.
The new Bolero Crowdfunding platform includes the following new features:
- Besides the usual suitability test that assesses the prospective investor’s experience, investment objectives and financial situation, the prospective investor also takes a simulation test to find out the extent to which he or she can bear any losses.
- Investors have four days to reconsider their investment.
- A standardised document known as a Key Investment Information Sheet (KIIS) for each campaign. Crowdfunding service providers have to draw up this sheet for each crowdfunding offer and provide it to prospective investors to help them make an informed investment decision. The document should warn prospective investors that the investing environment they have entered entails risks that are not covered by deposit guarantee schemes or investor compensation schemes.
- Calculating and paying interests
Steven Van de Sype, Commercial Director of Bolero Crowdfunding: ‘Our new Bolero Crowdfunding platform enables us to offer Belgian SMEs the opportunity and direct support to raise capital from private investors. In turn it gives investors additional opportunities to diversify their investment portfolios. For some investors, crowdfunding is a way to back projects that have a positive impact on society. As a result, we support not only new ideas and innovations where not enough or any capital can be raised through traditional funding methods, but also existing companies that can use crowdfunding to achieve their ambitions. The European regulation was the trigger for rethinking the existing platform. When conducting this exercise, we also took the expectations of our customers – both businesses and investors – into account. The ease of use of the platform and underlying processes that are efficient and user-friendly are in line with KBC's strategy of providing maximum convenience to the customer.’
Technical integration into Bolero platform and simplified processes
The new platform was integrated into Bolero, KBC's investment platform, providing the following benefits:
- Investors can transfer funds directly from their Bolero account to their crowdfunding account in real time and then invest those funds in a company running a campaign.
- The suitability test (see above), including the risk simulation test that each investor has to take, can be completed in advance so that no time is lost when subscribing to a campaign.
- Crowdfunding investors can also benefit from the other features of the Bolero platform, such as its education centre, the Bolero Academy, not to mention rapid service and a direct line to the order desk where experts can deal with all their questions.
- The business pays interest and principal back into the Bolero Crowdfunding account via the platform.
- Investors can keep perfect track of the repayments on the platform.
- Investors have a four-day cooling-off period. Prospective investors can cancel their investment within four days with the click of a button and without having to provide a reason.
The new Bolero Crowdfunding platform came about through the close collaboration between the Bolero teams and SettleMint, a company that builds blockchain applications.
The platform has two underlying applications, namely blockchain-based payment infrastructure and a digital asset management platform, for issuing a crowdfunding bond on blockchain. Raising capital, paying interest and repaying principal take place by means of smart contracts.
A first, new campaign has now already been added to the Bolero Crowdfunding platform: real estate investment fund Buysse & Partners. It is possible to subscribe to this crowdfunding campaign from 10 a.m. on Monday 27 November 2023.
Key Investment Information Sheet for this campaign can be found on the opening page of the platform.
About Bolero Crowdfunding
KBC was the first bank and online broker in the world to launch its very own crowdfunding initiative back in 2014. The Bolero Crowdfunding platform enables KBC to connect businesses and investors in Belgium as closely as possible to facilitate more innovation and entrepreneurship.
Since its launch, Bolero Crowdfunding has helped local SMEs and growth companies raise over 53 million euros spread across 96 campaigns. It does not provide advice on the crowdfunding projects published on the platform. Investing in crowdfunding offers investors the potential to earn higher returns, but also entails higher risks.
Businesses can benefit from crowdfunding in a number of ways, including gaining alternative access to funding that also provides opportunities for start-ups and growth companies, retaining customers, the ability to build a direct connection and engagement with their customers, generating publicity and marketing. For their part, investors can use crowdfunding to diversify their investment portfolio and so invest in a wide range of projects and sectors that might otherwise not be accessible. They have the potential to get a higher return and are involved in the project. They can follow the project, receive updates and track its progress.
About SettleMint
SettleMint is the blockchain transformation company that connects the dots between people, processes and technology to accelerate value creation with blockchain.
It enables enterprises to easily and rapidly build and integrate blockchain applications, while their IT teams receive advice, training and continuous guidance to support them in facing the cultural changes that a
transformation journey entails.
A key technical component of SettleMint is the Blockchain Transformation Platform, which enables IT teams to build and integrate enterprise-grade blockchain applications incredibly quickly. It radically simplifies blockchain development by offering full-stack capabilities and advanced integrations that are fit for all use cases, making every developer a blockchain developer.
The Leuven-based company has grown vigorously abroad and has a presence in Dubai, India (Delhi), Singapore and Japan.
