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TEK and business incubator Nestholma have teamed up to create a new crowdfunding model for technology startups.

Exclusively available for TEK members, the Nestholma share issue was launched on 1 April and will continue until 30 June 2016.

The minimum investment is a single share, priced at EUR 400. All funds raised through the share issue will be invested in technology startups.

This is a standard investment vehicle that carries the usual risks.

Nestholma will target the investment for a period of six years, during which annual interest at a fixed rate of 5% will be payable. The capital and any profit will be returned to investors at the end of the investment cycle in 2022. At the end of the cycle, investors are also entitled to a 20% profit share, calculated as an aggregate of all profits and losses.

Nestholma’s involvement is not limited to just investment – the business incubator is proactively involved in facilitating the success of promising start-ups by promoting their opportunities for collaboration with established corporations. Start-ups are also receive help with their business plan and are given support to avoid common early pitfalls.

TEK members participating in the share issue are also invited to apply to act as mentors in Nestholma’s start-up programmes. Members can also directly invest in businesses in the Nestholma portfolio.

The new technology start-up crowdfunding initiative was instigated by TEK’s Business Committee, which, for some time, has been engaged in considering opportunities for removing barriers to funding rapid-growth businesses, for the companies and investors alike.