EUR 400 Million Financed Through PROFITUS: Alternative Financing Has Become a Mainstream Choice for Real Estate Developers

Just a few years ago, crowdfunding was widely associated with smaller real estate projects or viewed as an alternative to traditional bank financing. Today, the situation is very different – even major real estate developers are choosing this financing model as their primary option. This shift is reflected in PROFITUS' latest milestone: the platform has now surpassed EUR 400 million in financed projects.

This achievement comes at a symbolic moment, as PROFITUS celebrates its 8th anniversary. Over the past eight years, more than 2,200 projects have been financed through the crowdfunding platform, not only in Lithuania but also across the Baltic States and Spain. During this period, investors have earned more than EUR 26 million in interest, while the active investor community has grown to over 15,000 members.

According to PROFITUS CEO Viktorija Čijunskytė, Chief Marketing Officer at PROFITUS, this milestone is significant not only as a measure of the platform's growth but also as evidence of a broader transformation in the real estate financing market.

"Eight years ago, crowdfunding was still considered a niche solution, mainly suitable for smaller projects or situations where developers were unable to reach an agreement with banks. Today, we see a completely different market. Large, experienced real estate developers choose our platform because they see crowdfunding not as a backup option, but as a strategically convenient and flexible way to raise capital. Reaching EUR 400 million in financed projects demonstrates that this financing model has become a mature and integral part of the real estate financing ecosystem," says V. Čijunskytė.

Flexibility Becomes One of the Most Important Criteria

Today, PROFITUS finances projects developed by companies such as Realco, Citus, and KAITA Group. According to V. Čijunskytė, when selecting financing solutions, major developers increasingly value flexibility, the ability to adapt financing to the progress of a project, and access capital based on actual funding needs.

"Large real estate developers choose crowdfunding not because they cannot secure bank financing, but because this model often better matches the pace of today's development projects. One of its greatest advantages is speed and flexibility – financing terms and schedules can be tailored to each stage of the project and to the actual capital required. Developers can borrow in stages and pay interest only on the funds they actually use, rather than drawing the entire project budget upfront. This enables more efficient cash flow management, lower financing costs, and a faster response to market opportunities. In addition, crowdfunding helps diversify funding sources and reduces dependence on a single financier. For large developers, it has become not a backup solution, but a strategically beneficial financing choice," says the PROFITUS CEO.

Investors Are Changing Too

According to V. Čijunskytė, these market changes are not limited to project developers. They are also reflected in investor behaviour, as an increasing number of investors now view crowdfunding not as a series of standalone investment opportunities but as part of a long-term investment strategy.

"The opportunity to invest from relatively small amounts, together with growing financial literacy, encourages people to pay greater attention to diversification and better understand where their money is being invested. As a result, investor behaviour is changing. While several years ago many investors tended to focus on whichever individual projects seemed the most attractive at the time, today more and more of them invest regularly, diversify across different projects, and build their portfolios with a long-term perspective. This shows that investors are increasingly focusing not on individual transactions, but on consistently building diversified portfolios," says V. Čijunskytė.

However, as investor behaviour evolves, so do investor expectations. In response, PROFITUS continues to expand its range of investment opportunities. Earlier this year, the platform introduced bond investments, and it plans to continue developing new investment solutions that reflect changing market expectations.

"We see that today's investors expect more choice than they did just a few years ago. Bonds were one of the first steps in expanding our investment offering, and we will continue looking for new solutions that provide investors with a wider range of opportunities while maintaining what matters most – clarity, transparency, and the ability to invest in real projects, even with relatively small amounts," says V. Čijunskytė.