SCHEDULE
The thirteenth edition of the INOTEX International Innovation and Technology Exhibition hosts companies seeking to raise capital through crowdfunding. Applicants for capital raising in this way can complete their information by May 21, 2025.
Crowdfunding, or crowd-sourcing, is a modern financial tool for raising capital based on collective micro-capital. The benefits of crowdfunding have drawn attention to this method of capital raising, and it has also been noticed in our country.
This tool is also known as collective investment and community capital raising, and it involves collecting the financial resources needed for a project from the micro-capital of a large number of investors. In today’s world, this process usually happens over the internet.
Crowdfunding is a type of public offering that has taken shape for mostly medium investments and is a common method for financing knowledge-based companies, startups, and entrepreneurs. This method is not only for starting a business, but also for continuing operations and development.
Each crowdfunding campaign or initiative consists of three main parts:
In our country, crowdfunding is done with a revenue-sharing model, with permission from the Iran Fara Bourse Company.
Currently, most crowdfunding campaigns focus on accompanying investors with plans to provide a year’s working capital for a business; that is, the capital return period in the revenue-sharing model of these projects is less than one year, and during this period, the principal of the investors’ money, along with some profit from the project, should be provided. Given the risk in this type of investment, investors naturally expect a higher return than bank deposit interest and the usual fixed income investment funds.
The money collected in the form of working capital is collected based on the business plan that is placed on the crowdfunding platform. The maximum money collection period is one month, and only if all the money is collected during this period, the investment is made and the campaign is considered successful. The Iran Fara Bourse Company has obliged entrepreneurs and project owners to provide at least 10% of the final investment amount from their financial resources at the beginning of each campaign and be part of the project investors themselves.
Legal investors have no limit for investment; while individual investors can participate up to a maximum of 5% of the total amount. The purpose of these limitations is to minimize the risk of this investment model for individuals. This method helps businesses finance their projects, and on the other hand, investors can participate in the country’s production.
In the thirteenth edition of the INOTEX exhibition, the fourth INOTEX crowdfunding event will be held in collaboration with the Growth Investment Company.
For more information, please contact 91002422-021 and 09195725729.
