Nordstreet is Changing the Market Mindset: Major Developers are Turning to Crowdfunding

Until recently, crowdfunding in Lithuania was often viewed as a niche solution — associated with smaller developers who lacked sufficient capital or access to traditional financing.

But this perception is rapidly changing: today, more and more successful and experienced real estate developers are choosing alternative funding sources not out of necessity, but for their efficiency, speed, and flexibility.

One clear example is UAB Cube REM, which is developing the “Baltų Avenue” residential complex in Kaunas. The company, already known for several successful housing projects,

decided this time to use the Nordstreet crowdfunding platform for its financing needs. Through Nordstreet, investors are funding a €885,000 loan for the project, which has been rated as low risk (A group), with investors earning up to 12.5% annual return.

“In this market, speed is everything — a good plot or opportunity can disappear within days. We had to act fast, and Nordstreet offered a quick solution that allowed us to secure the project and move forward,” 

says Marius Kubertavičius, Director of Cube REM.

\Alternative Financing Becomes a Strategic Choice

Baltų Avenue consists of two A++ energy class residential buildings in Kaunas’ Baltų Avenue.

The project combines residential and commercial spaces, ensuring both value growth and liquidity — apartments drive long-term appreciation, while commercial premises generate stable rental income.

According to Mindaugas Ruseckas, Nordstreet’s Chief Funding Officer, this project illustrates how experienced market players increasingly choose crowdfunding for its speed and efficiency, not as a last resort.

“Developers need to react fast — especially in a competitive real estate market, where opportunities don’t wait. Our processes enable developers to receive a financing offer within days. It’s not ‘last-minute financing,’

but a flexible alternative that helps them capitalize on timing,” says Ruseckas.

Speed, Transparency, Partnership – Core Nordstreet Values

Nordstreet is one of the first licensed crowdfunding platforms in Lithuania, operating under the EU Crowdfunding Regulation and supervised by the Bank of Lithuania.

To date, the platform has attracted nearly €60 million in total investments, and investors have earned over €7 million in profit. 

Ruseckas emphasizes that more and more established developers are now choosing the platform for its responsiveness, while investors value the strong risk management and security it provides.

“Our mission is not only to connect capital with projects but to build a trust-based ecosystem. We’re here for those who value speed, reliability, and transparency,”

he explains.

All loans on the platform are secured by a first-rank mortgage, and each project is carefully assessed based on strict internal risk criteria.

A New Approach to Capital

While banks remain the primary source of financing for most projects, a hybrid model is emerging — where developers strategically combine traditional and alternative capital to maintain project momentum and flexibility.

“This model is especially important during the early project stages — such as land acquisition or permitting. If you don’t act in time, you lose your position in the market. In these cases, crowdfunding serves as a reliable bridge to the next financing phase,” says Ruseckas.

Crowdfunding is thus becoming not a Plan B, but a complementary tool that keeps projects moving forward. Both Cube REM and Nordstreet stress that this approach is not competition for banks, but rather a partnership.

“This model allows us to act strategically — to launch quickly and later refinance with banks if needed. It’s not a temporary fix; it’s part of our long-term strategy. The sooner you start, the sooner your project gains visibility — and that gives you stronger negotiating power later,” adds Kubertavičius.

Once seen as a fringe alternative, crowdfunding is becoming an integral part of the real estate ecosystem — a tool for those who want to move fast, but responsibly.

As Cube REM’s example shows, this approach helps developers maintain market pace, while allowing investors to share in their success.

INVEST