Real estate crowdfunding: potential in Latvia

2017

Currently the economic environment is changing rapidly. The millennium’s development phase was followed by global financial crisis, which has changed the rules of game for all financial players and made others’ think outside the box. After the economic crisis people started losing trust in traditional financial institutions like banks, where all the processes are still very bureaucratic. Overregulated bank lending system could not satisfy the credit demand of small to medium size enterprises, thus triggering the need for a new, innovative financing model to fill the gap. At the same time, the communication afforded by Internet and information technologies opened up new opportunities. Taking…