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“Together [with DOMO Invest], we will take the business to another level, bringing the scalability that’s needed to the platform.”
Thanks to this capital injection, the startup expects to grow 10 times within the next three years.
Related article: Marketplace fintech IOUU raises US$1.3 million with DOMO Invest
There are crowdfunding platforms to invest in businesses, like startups. There are also platforms so people can put their money into mutual investment funds.
But Bloxs’ solution can’t be categorized into either, per se.
This fintech’s proposal comes from crowdfunding into alternative projects such as real estate developments, the creation of solar power plants, even for upcoming live events.
But the lowest price for a ticket into this platform is R$1,000 (US$229). Not exactly cheap when compared to other investment-related fintechs.
Nonetheless, the startup on its website promises returns between 12 and 20 percent a year. Meanwhile, the projects in which one can invest last between 12 to 36 months.
As for its formula for making a profit, the startup charges the project’s developer a five percent fee at the end of the fundraising period.
Once again, emphasis on the fact that like any investment, there is risk. If the project’s developer disappears, so does the individual investor’s money.
Bloxs makes an effort to verify the validity and identity of the developer. But things can go wrong and interested parties must have the stomach (and knowledge) to grasp where they want to contribute their hard-earned cash.
So… it would appear Brazilians have a lot of change in their pocket lately. That makes them prime targets for these startups to reach out to and put their money to work through their investment platforms.
Related articles: Tech and startups in Brazil!