Tomas Kaziukevicius: How Nordstreet is Fueling Real Estate and Business Financing

In this interview, we speak with Tomas Kaziukevicius, COO of Nordstreet, about how the company is driving growth in real estate and business financing. Learn about the inspiration behind Nordstreet, the investment opportunities it provides, potential returns for investors, and the ambitious milestones they aim to achieve.

Can you give us a brief introduction to what Nordstreet does?

Nordstreet has been operating as a crowdfunding platform since 2018, offering investors the opportunity to fund business expansion and real estate development projects. In return, investors can potentially earn returns from project growth. To date, we have facilitated nearly €50 million in project investments, with our investors earning over €5 million in interest. The process is simple: we list vetted projects, investors contribute funds, and we serve as intermediaries for successful transactions.

What attracted you to Nordstreet, and what excites you most about the company's mission?

The chance to contribute to the transformation of the traditional investment model is what drew me to Nordstreet. By enabling people to invest varying amounts in real estate and business projects, we’re breaking down barriers. While some of our investors contribute as much as €100,000, others can start with just €50. What excites me most is seeing how our platform empowers individuals to participate in opportunities that were once reserved for large investors. It’s also rewarding to witness our platform helping both investors grow their capital and businesses expand.

How does Nordstreet identify and source potential investment opportunities?

Nordstreet sources investment opportunities through a rigorous, risk-conscious approach. We partner with experienced loan brokers to carefully vet real estate and business projects, ensuring only high-quality, low-risk options are selected. We also use targeted marketing campaigns to attract strong borrowers, particularly developers seeking crowdfunding as an alternative to traditional financing. Additionally, we continuously analyze the market to identify promising regions, like our planned expansion into Poland. This proactive risk management, along with a diversified portfolio, helps minimize defaults and provides secure, attractive investment opportunities for our investors.

Could you tell us more about your team and how each member contributes to Nordstreet’s success?

The Nordstreet team is diverse and continually expanding. Our project selection department evaluates and chooses investment opportunities, while the legal team ensures compliance with European regulations and manages relations with debtors. Our marketing team promotes Nordstreet’s services, engaging with influencers and media outlets. The customer service manager works closely with investors, and the IT department ensures the platform's maintenance and improvement. Our development manager seeks new opportunities. Each role is crucial in ensuring we operate as a cohesive and effective team.

What regulatory framework governs Nordstreet, and how does it benefit your investors?

Nordstreet operates under the European Crowdfunding Service Providers (ECSP) Regulation, which provides a unified regulatory framework for crowdfunding across the EU. This offers key benefits to investors, including:

1. EU Passporting: With an EU-wide license, Nordstreet can operate across all EU member states, offering investors more opportunities without regulatory barriers.
2. Enhanced Investor Protection:

• Clear rules on disclosure ensure transparency for investors.
• Strict governance and risk management requirements further protect investors.
• National authorities, like the Bank of Lithuania, supervise our activities to ensure compliance. Overall, the ECSP boosts investor confidence and promotes innovative financing options.

What types of investment opportunities can investors find on Nordstreet?

Investors on Nordstreet can explore a wide range of real estate-focused opportunities. These include investments in commercial properties such as office spaces and retail units, as well as in development projects like new construction or property renovations. Investors can participate in crowdfunding initiatives alongside others or opt for short-term projects designed for quicker returns. This variety allows investors to choose opportunities that align with their financial goals and risk preferences.

What returns can investors typically expect when investing with Nordstreet?

Returns on Nordstreet vary depending on the project type and associated risk, typically ranging from 10% to 17% per year. Certain development projects may offer even higher returns due to their potential for greater profits. Investors may also earn income from rent if they invest in rental properties. However, it's important to note that returns are not guaranteed, and all investments carry some level of risk. We advise investors to carefully assess each project before committing funds.

What are the risks of investing with Nordstreet?

All investments carry risk, and there are no absolute guarantees in the market. Even long-established platforms face insolvency cases. At Nordstreet, we place great emphasis on thorough project evaluation and selection, and we work closely with customers who encounter payment difficulties. This approach allows our most patient investors to receive returns and compensation that often exceed expectations, with compensatory interest historically reaching over 22%.

What advantages set Nordstreet apart in the market?

Nordstreet stands out for both its investment opportunities and its user-friendly platform. Our continuously improving interface and seamless communication are highly praised by users. One of our unique features is a secondary market where investors can easily sell their investments, offering additional security for cautious investors. Additionally, our automated investment tool allows busy or less experienced investors to invest effectively without needing to analyze projects themselves. Nordstreet not only creates opportunities but also fosters a convenient and secure environment for investors.

What are the key milestones or objectives Nordstreet is aiming for in the upcoming year?

Nordstreet has set ambitious goals for the coming year, focusing on expansion and portfolio optimization:

1. Expansion into the Polish and German Markets: We aim to expand operations into Poland and Germany, both of which offer significant real estate investment opportunities.
2. Portfolio Optimization: Another key objective is to reduce the volume of defaulted investments by strengthening risk management processes and diversifying opportunities across various markets and sectors. This will help maintain a low default rate and ensure steady returns for investors. These objectives reflect our commitment to growth while prioritizing investor security and returns.