Supporting investment democracy

{:ee}Inimesed päikseloojangul{:}{:en}People at the sunset{:}

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Providing each interested person an access to our real estate investment opportunities has always been our mission. There was no problem with that while we had a few thousand registered users – just about a year ago, our investment opportunities stayed open for a week or two and everybody was able to invest.

We will break 7500 user barrier today and this has resulted in new challenges. More than half a thousand concurrent users are trying to simultaneously conclude investment agreements when any new investment opportunity is opened and this has caused severe system overloads.

Due to limited supply and massive demand, all our recent investment opportunities have been fully subscribed on a few minutes. This has resulted in lots of investors being unable to participate.

An interesting trend is the increase of crowdfunders investing significantly larger amounts. Just a few larger participants can grab a large portion of any opportunity leaving a large number of smaller investors out in the cold.

Two bottlenecks behind those problems will be removed in coming days.

First, we have decided to rewrite one third-party component and add missing functionality to it. This will result in properly working database replication process, which significantly improves our capability to process simultaneously investment agreements.

Secondly, we will introduce a new Prebooking feature, which will allow investors to conclude investment agreements in a limited amount before the investment opportunity is opened for investing. The prebooking limit is set individually for each investment opportunity and we believe, that a 1% – 5% limit will be enough for most of our members.

How does the Prebooking work?

After the investment opportunity has been published, the current yellow “Pending” button will be replaced by “Invest now up to 10 000 EUR” button. Any investor having already made their investment decision can use this button to process to submitting investment application and concluding investment agreement as usual. There is a limit of one investment application per one investment account not exceeding the stated investment amount during the Prebooking period.

After being visible for a few days, the investment opportunity will be opened for investing as usual – anybody (including prebooking investors) can invest as much as they want and conclude any number of investment agreements.

We believe that our new Prebooking feature will kill two birds with one stone:

  • All small investors have access to investment opportunity and the number of let out, disappointed investors should decrease;
  • Prebooked investors do not have to “fight” for the remaining investment when the opportunity is opened, which should result in much less simultaneous investors and much lower system load.

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