EU – Baltic States, Investments, Technology

Guntars Galvanovskis Director of LLC Dižozols Investments.

The finalized investment project is one of the most significant crowdfunding transactions in the Baltics attracting international investment for the forest industry in Latvia. The funding was attracted through the crowdfunding platform Crowdestor bringing together more than 3500 investors from 69 countries including Germany, Switzerland, Japan and others.

The total closing transaction amount reached 3.46 million euros of which 2.77 million euros made up the principal amount while profits for the investors totalled 690,000 euros.

The main objective of the attracted investment was to acquire forest estates/woodlands in order to build the forest fund.

“With the attracted funding we have successfully built the forest fund. In collaboration with LLC DIZOZOLS and using their timber distribution/processing and logistics technology we have built the forest/woodland management plan, which consists of logging, soil preparation, tree planting and coppice cultivation, with the main objective to significantly increase the value of forest estate,” says Guntars Galvanovskis Director of LLC Dižozols Investments.

G. Galvanovskis is one of Latvia's new generation of entrepreneurs and millionaires, who has also invested in other industries.

The forest industry is one of the most important economic sectors in Latvia providing significant contribution to the country’s internal economic development as well as the growth of foreign trade. Janis Timma, the founder of Crowdestor and the chairman of the board points out that this specific transaction has convinced investors to invest in future projects of this type, which aim to develop the forest industry in Latvia.

“This is not only one of the biggest investment attraction projects in the Baltics but also the most successful one in the history of Crowdestor. While carrying out the credit risk analysis during the project application examination phase our team of financial analysts paid close attention to the financial indicators and signs of fast growth which, along with LLC DIZOZOLS modern technology practices, evidenced of a high potential project and the ability to fulfil the promises given to investors. As a result, the credit committee made a unanimous decision to grant the loan,” points out J. Timma.

Crowdestor is a crowdfunding platform, which provides investment evaluations for a large variety of projects and attracts funding for their realization. The company is currently carrying out more than 300 different investment projects as well as optimizing internal procedures and legal requirements in order to acquire a crowdfunding service provider’s license.

“Among our most successful projects there is also lung ventilator delivery to Romania. In the nearest future investments from other projects will be returned to investors with good earnings, one such venture is the Hollywood movie Warhunt featuring the world famous Mickey Rourke, Jackson Rathbone, Robert Knepper,” adds J. Timma.