What is Argeld?
Argeld.com is a crowdfunding platform and Argeld OÜ is a Novira Capital Group Company, which deals with project financing through crowdfunding. Argeld's team has long-term finance and business experience. We are interested in real estate and other business-related loans, and provide tailor made investments for those who have joined the platform.
Before creating the portal we were engaged in project financing as part of Novira Capital, by which we managed to create confidence in the execution and profitability of the plans. Over the last 3.5 years, we financed projects in the volume of around 24 million euros with an average contractual return of 11.6%. There are three types of transactions executed:
- Financing of Novira Capital real estate development and fundraising for it
- Financing of other real estate development and raising capital for projects
- Corporate finance and takeover transactions
Our goal is to create a platform that brings together both loan applicants and investors. Argeld's focus is on the optimal revenue/risk ratio, not on the number of projects involved. The amounts to be funded are, as a rule, between EUR 500 000 and 5 000 000.
We only raise funding for projects in which we are willing to invest and we plan to maintain a significant financial position in each project. We see that, in the near future, Novira's participation in each project is half the amount or higher, and that the funds raised by Argeld investors represent a smaller proportion of the total funding. This ensures that the financing of projects is not directly dependent on the amount of money raised from the investors and that it is also possible to carry out larger transactions.
Our goal is to allow investors to participate in loans already issued and also to invest in new projects. We offer projects whose quality we are so confident in that Noviral is ready to fully finance the entire amount, regardless of the final interest in participation of investors. We believe that our careful analysis and having a significant proportion of Novira will also provide good support to the rest of the investors.
Argeld's advantage is that we can finance our selected projects, no matter how much capital we raise through the portal investors, as a result of which investors do not have the risk of completing the investment amount. We are, so to speak, calling the investors onto a moving train.
Argeld focuses on larger projects where there is a need to strengthen the capital base, in addition to bank loans, or which because of their early stage, do not yet receive financing from banks, but the business potential of which is strong. We are also prepared to consider projects without any bank financing. Our analysis focuses on the profitability of projects and the likelihood of their realization.
In order to expand our business, we include investors from the market who are fine with the risk-return ratio of our loans and who are interested in gradually increasing their contributions. However, Argeld's focus is on finding projects with good potential, in depth analysis therof, and in the professional structuring of loans.
We have joined and adhere to the good practice of crowdfunding.
How does the system work?
The portal contains projects under the Investment, into which it is currently possible to invest your chosen amount, the minimum allowed investment amount is 100 euros. By investing in the portal, the user gives his or her signature to the loan contract and the mandate Argeld to transfer funds to the borrower.
Each project/loan transaction is carried out through a sister company of the platfrom, which is a regular private limited company. This sister company is owned and managed by the holding company of Argeld platform. All companies belong to the Novira Capital consolidation group.
Therefore, the platform will receive orders from investors, carries out financing, and administers loans for investors. The money transferred by investors to Argeldi's virtual account is held in LHV Bank separately from the other bank accounts of Argeld OÜ. Available funds on the investor's virtual account can be transferred to the investor's private account at any time.
After signing the documents and transferring funds to the Investor's virtual account, the portal will transfer the amounts received from investors to the borrower or the assignor of claim. The money moves either under the loan contract or the loan assignment contract either to the borrowing company or to the assignor of the claim. Argeld makes sure every time that before the money transfer from the virtual accounts of the investors, all contracts must be signed and the collateral must have been set aside for the benefit of investors.
The borrower pays interest and loan repayments to Argeld's virtual account, where investors can dispose of their free funds without any restrictions.
We expect investors to understand both essence of crowdfunding as well as the legal and financial structure of loans offered through the portal before signing the loan decision.
Jaak´s speciality is business and project financing; he has long-term experience in the arrangement of capital provision for public as well as private transactions, financial coordination on the capital markets and structurisation of projects, transactions and enterprises. As a partner and board member of several international corporations, Jaak has participated in the processes related to the financing, acquisition and real estate transactions of listed companies as well as given consultations about the capital provision in project financing. Jaak has got a Bachelor`s degree in Business Management from the Estonian Business School.
Nikolay’s area of responsibility includes projects’ financial palnning and controlling, management of accounting and ensuring the overall effectiveness of financial management. He has extensive experience in the field of loan administration, modelling decision-making processes and real estate project analysis. Nikolay holds a Master’s degree in Economics from the University of Tartu.
Aleksei has graduated from the faculty of law of Tartu University and has previous experience from the law office and several financial institutions. Having specialized in business law, Aleksei’s area is the legal structure of Argeld’s parent- and sister companies and the contracted environment between them to protect Investors interests. He’ also active in engaging top class investors with the portal.