A second player has entered Moldova’s crowdfunding scene – Balkanika Finance LLC. This new entrant is backed by Estonian capital. Yet despite a shared origin, the differences between the two platforms are significant.

In November, Moldova’s financial regulator officially licensed the second crowdfunding service provider and the first platform focused on equity-based investments – Balkanika Finance LLC. The platform, which will operate under the brand name BALKANIKA, aims to facilitate collective lending and investment, with rights to manage loan portfolios and related financial services.

Vladislav Mocanu, CEO and co-founder of Balkanika Finance LLC, said:

"Balkanika combines an innovative approach to financing with reliable investor protection tools.

The uniqueness of our online platform is that every investment is guaranteed by a real estate pledge. This makes the investment not only attractive, but also safe, and ensures a high level of financial protection for investors. Investors have the opportunity to become co-owners of the business".

According to one of the startup’s co-founders, this development holds particular importance for Moldova. It opens up new channels of capital inflow for real estate development and adjacent sectors. The properties offered as collateral for loans serve as built-in security for collective investments — a model especially relevant for Moldova’s regional markets. On the investor side, individuals gain access to new instruments for diversifying income and generating passive returns through interest or dividends. Tools such as government securities, crowdfunding platforms, and private pension funds are empowering the public to shield their savings from inflation while growing their wealth.

Earnings from bank deposits, private funds, crowdfunding platforms, and corporate bonds are subject to a 6% income tax. However, capital gains or interest received by resident individuals from government or municipal bonds are classified as tax-exempt.

The concept of raising funds directly from a wide base of individuals — typically via online platforms — has gained immense popularity across the EU. This approach enables entrepreneurs, creatives, and startups to secure financing without relying on traditional banking institutions or venture capital.

In 2023, Moldovans received interest income from their savings in the amount of 3.2 billion lei. During this period, this is equivalent to 2.9% of the total official taxable income of the population.

Being an alternative to conventional investment avenues, crowdfunding in the EU is subject to strict licensing and oversight of online platforms. Across Europe, these platforms cover a diverse range of areas — from high-tech startups to social initiatives — and are increasingly in demand. Service providers in this space are not only responsible for the digital infrastructure but also for full legal compliance and adherence to standards.

Investor protection, transparency, and safety are key pillars of collective finance — and these standards are expected to be upheld by local players as well. As Vladislav Mocanu notes, Estonia’s extensive experience with crowdfunding, including crypto-financing, offers a valuable knowledge base for Moldova, given that both of its licensed platforms to date are linked to Estonian capital.

Estonia’s co-financing platforms operate within the EU single market, engaging with multiple member states. Although crowdfunding is a relatively young industry across the Baltics, Estonian platforms — particularly in the real estate segment — have stood out as regional leaders. In fact, the total volume of funds raised this year by Estonian startups via crowdfunding is approaching €3 billion.

Author: Irina KOVALENKO, LOGOS PRESS, Issue No. 45, December 6, 2024