Crowdinvesting – Much More Than Just Growth Financing for High-Tech Companies

The path to successful business financing often resembles a balancing act. Particularly innovative companies and start-ups are challenged to find suitable growth capital while maintaining their independence. Christoph Reschreiter, co-founder and CEO of Cube Dx, recently completed his first crowdfunding campaign for Cube Dx. He shares his experiences on why crowdinvesting is more than just a financing option and how to optimally prepare for the next growth phase. In addition, Hannes Voit offers deep insights into the diverse financing options available for growth companies. He is the managing director and partner of C4 Holding – a Vienna-based company specializing in capital markets, private equity, and M&A transactions, with over 25 years of experience in investment banking. Together, they highlight the opportunities and challenges on the path to sustainable success.

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The development and introduction of innovative products require capital. Why did Cube Dx choose crowdinvesting?

Christoph Reschreiter: Crowdinvesting enables us to raise capital while also providing a platform that increases awareness of our company and brand to a broader audience. This helps us reach potential investors, future customers, and possible new employees. The great advantage is that we not only raise financial resources but also build trust and increase visibility. For us, the campaign is also an important marketing measure that goes beyond mere financing.

Mr. Voit, what are the current challenges in financing growth companies?

Hannes Voit: The capital market sector in Europe is currently in a particularly difficult phase, especially in the venture capital space. The rapid interest rate reversal after a long period of cheap money has unsettled investors. Many are holding back their capital, making it more difficult for growth companies to secure new investments. Companies that have so far relied mainly on continuous funding rounds are particularly affected. However, for companies like Cube Dx, which are already performing well economically and have a mature product, there are still interesting opportunities. Strategic investors are specifically looking for such scale-ups and are willing to acknowledge fair valuations.

What does Cube Dx’s future financing strategy look like?

Christoph Reschreiter: We have a clear vision for the coming years: the expansion of our sales network in Europe is a priority. With the current financing, we primarily want to drive growth. Another step toward the US market is also planned, with existing investments helping us in this endeavor. In the long term, another crowdinvesting campaign is an option to secure additional capital for growth projects. Of course, traditional forms of financing, such as bank loans and grants, remain part of our strategy. The goal is to grow sustainably while remaining flexible in responding to market developments.

Mr. Voit, how has crowdinvesting developed as a financing model, and what risks are involved?

Hannes Voit: Crowdinvesting has become much more professional in recent years. It is now an established tool that has been regulated by Austria's Alternative Financing Act for more than a decade. The model allows growth companies to raise capital from a wide range of investors, mostly from the DACH region, often through subordinated profit-participating loans with attractive interest rates. Naturally, there are also risks, especially for investors: they are heavily dependent on the company's performance and bear the risk of potential capital loss. Therefore, it is important that companies communicate transparently and openly to maintain the trust of their investors.

What are the long-term effects of a successful crowdinvesting campaign on Cube Dx?

Christoph Reschreiter: A successful campaign is not only a financial success but also a validation of our chosen path. The more than 200 investors we gained through the crowdinvesting campaign are also ambassadors who carry our vision forward. In the long term, this campaign also prepares us for other financing options, including the possibility of going public. The intensive communication with investors and the feedback we receive help us further develop our company and better align with the needs of the market.

What measures did you take to make the crowdinvesting campaign successful?

Christoph Reschreiter: We placed great emphasis on our external communication. Regular updates, whether success stories or simple status updates on current developments, build trust. It was important to us to view the campaign as part of a larger communication strategy that extends beyond the crowdinvesting platform ROCKETS. We aim to involve investors directly and engage them as much as possible in the process. Transparency and close interaction are key here.

What are the advantages of crowdinvesting as preparation for an initial public offering (IPO)?

Hannes Voit: Crowdinvesting is excellent preparation for an IPO. Companies must already demonstrate high transparency at this stage and clearly and understandably present their financial situation and business model. This builds trust and is good practice for the demands of the capital market. Additionally, successful crowdinvesting campaigns can already indicate solid investor interest, making the step to going public easier. The broader public also becomes aware of the company, which can later expand the investor base. Especially considering that today, medium-sized companies can technically implement a self-issued IPO using software solutions from crowdinvesting platforms. The success of an IPO depends on the ability to attract retail investors alongside traditional institutional investors (banks, insurers, pension funds, etc.). If a pre-existing crowd audience already covers part of the retail tranche, this is a very good prerequisite for a successful IPO.

What growth goals does Cube Dx plan for the coming years, and how will they be achieved?

Christoph Reschreiter: Our focus is on expanding our presence in Europe and strengthening our sales network. This will significantly increase our revenue, and we aim to exceed the one-million-euro mark for the first time next year. We are not only focusing on developing new products but also on optimizing our internal processes and expanding our partner network. Our long-term goal is to enter the U.S. market, which will require even more intensive preparation.

Mr. Voit, what is your assessment of Cube Dx's future financing strategy?

Hannes Voit: Cube Dx is in a strong position. Thanks to the successful crowdinvesting campaign and the growing demand for their products, we see great potential for further growth. With strategic investors already signaling interest and a broad investor base, the company is well-positioned to finance its next growth phases. It is important to continue utilizing a mix of different financing options – from grants to bank loans to new crowdinvesting campaigns. Cube Dx has demonstrated that it can operate sustainably and adapt flexibly to market conditions. This is the foundation for a successful future.