Frequently Asked Questions

To become a business angel league member on the CrowdedHero platform, you need to fulfill two essential conditions. First of all, you need to go through the KYC procedure of professional investors - to do this, contact us. Second, the investor must make an investment of at least 10,000 euros in one company. By following these steps, you will automatically be accepted into CrowdedHero's Angel League - the answer to the question of who are business angels is that simple.

Investing in shares requires prompt response to both the latest market trends and investment projects. In order not to miss the latest projects to invest in, sign up in the form below, specifying only your e-mail address. You can unsubscribe at any time if you wish.

At CrowdedHero, we believe that every investment is worth it if you do your due diligence before committing. If you need more information or want to know how to invest on CrowdedHero platform, contact us!

Investing in business requires a thorough study of the project in order to understand how promising it is. CrowdedHero has very detailed information about every investment project on our platform, which makes investing in company's equity more deliberate. In the short description of the project, you can familiarize yourself with the most important data (necessary and already collected amount of money, share price, number of investors, location of the company, industry and short description).

Whereas, when you open the specific project, you will see:

• a comprehensive business description, including information about the company, market share distribution, growth strategy, investment disposition plan, dividend payout and company exit scenarios, transaction structure and other important factors, as well as a concise summary;
• the company's team and a concise description of each of its representatives;
• the most important documents (information available when entering your profile);
• forum section (information available when entering your profile);
• shares (information available when entering your profile).

The relevant information will be very useful for you to understand which companies shares to buy on the Internet that can bring the desired profit.

You can invest in shares with us if you have reached the age of majority and obtained the relevant status. To get it, you need to follow these steps:

• You must register by clicking the Sign up button in the upper right corner of the homepage and filling out the application form;
• KYC documents and necessary additional information must be submitted;
• the classification of the investor must be chosen (non-sophisticated investor or sophisticated investor);
• when choosing the classification of a non-sophisticated investor, you must pass a knowledge test and simulate your ability to bear loss.

Once you've completed these steps, you'll be ready to invest in the company. However, before buying shares on the Internet, carefully familiarize yourself with all the conditions and scrupulously evaluate each investment project.

Investing in shares is possible in two different ways - using the direct investment model or the indirect investment model (SPV). As you can guess from the name, the direct investment model assumes becoming a shareholder without intermediaries, in return receiving dividend payments or earning through an increase in the value of shares or capital at the time when the company is bought by the investor.

The indirect investment model assumes that a company specially established for this purpose (SPV) becomes a participant in the company in which the funds will be invested. Each of the investors registers in the register of shareholders of the SPV, and the SPV distributes dividends and will also act as a representative of the investors if the shares of the project owner's company are sold.

Despite the fact that CrowdedHero can offer investments in companies" equity from almost all of Europe, we pay special attention to new and growing Latvian companies that stand out with innovative and potentially profitable ideas. Why make investments in Latvia and invest in shares in companies registered here? There are several reasons for this:

• supporting local business - investing money in one of the local companies means that local entrepreneurs receive support, and financial resources continue to circulate in the local economy;
• better known market – in most cases we are better acquainted with local cultural, legal, political, social and other nuances, which are not unimportant to understand the long-term potential of a business idea;
• the opportunity to earn significantly - regardless of where the investment projects are located, with crowdfunding there is a opportunity to increase your capital, and the Latvian market is no exception. True, it should be taken into account that there is always a risk of partially or even completely losing the investment.

In summary - buying shares of Latvian companies is definitely the right thought to consider, only before that we recommend that you familiarize yourself with the specific business idea.

We offer to invest money not only in Latvian, Lithuanian and Estonian companies, but also in many other countries. Companies registered and operating in the European Union (EU) or the European Economic Area (EEA) can apply for investment on CrowdedHero.

Unfortunately, no. CrowdedHero's secondary market is available for the sale or purchase of shares of companies purchased on the platform.

CrowdedHero Secondary Market is a dashboard-style marketplace, where CrowdedHero investors can sell previously purchased company shares or advertise their interest in buying shares in other promising companies.

Additional information: https://crowdedhero.com/secondary-market

In order to register investor account and start investing ,please :

• Fullfill CrowdedHero KYC form

• Declare yourself as Sphisticated invesotr or porceed as NonSophisticated investor 

• Pass knowledge test-It's fun and easy!

• Pass Simulation to find out oyur ability to bear loss.

Non sophisticated investors could revoke(cancel) they investments during reflection period.

A reflection period is a pre-contractual period during which a prospective investor classified as a non-sophisticated investor may at any time revoke his/her/their expression of interest in an offer without giving a reason and without incurring a penalty. The reflection period is granted to ensure that non-sophisticated investors have time to reconsider their decision to invest in an offer without having any contractual obligations towards us or the project owner. The reflection period starts at the moment the investor has communicated his/her/their interest to invest in the offer on CrowdedHero and will expire after four (4) calendar days.

A crowdfunding campaign can take from 30 to 45 days. The project owner should provide detailed information about his company, team, products or services, market, scalability options and investment plan. All information is gathered together to develop a sales pitch which is then published on the platform. CrowdedHero makes every effort to attract investors, support fund collection and complete the share registration process.

Equity offer depends on your company’s pre-money evaluation, new share issuance and a share premium. Companies issuing new shares should keep in mind their investment plan. For example, if a company issues 10% of new shares, and the pre-money evaluation is EUR 1.8 million, you could offer 10% of your equity for EUR 200 000 (post-money valuation is EUR 2 million).

A pool of investors will be represented by a lead investor. The lead investor is brought into the project owners’ company supervisory board. Day-to-day operations are up to the company’s management, but all major business decisions are made during board meetings where the lead investor takes part and represents the investor pool’s interests and rights.

We focus of growth companies that have a clear investment plan. You should have a well-developed plan of how attracted capital will help to double company value in the next 5 years. Shareholders should be openminded about a company exit. You should be ready to distribute at least 50% of net profit in the form of the dividends.

Company should be ready to provide the following:

• Cost of Goods Sold (CGS) or similar
• Uniform Resource Locator (URL) to the official state company house register
• Full KYC on each shareholder and board member
• Corporate structure description and full corporate document package
• Audited balance sheets for the 3 previous years
• Cashflow statement, income statement, general ledger and management accounts

We believe that all businesses are unique and have the potential to provide our investors with profitable investments, so we do not focus on any specific industry. However, we do not onboard or tobacco production companies, or any high-risk businesses.

CrowdedHero fee structures are based on the principle of win-win. Investors pay fees when they receive profits. These are:

3.5% when an investor receives dividends.

9% when a company successfully exits (i.e., the project owner’s company has sold its shares to another company and investors made profit).

1.25% of the amount invested per a project- Processing fee ^* (to cover administration and processing fee)

A reflection period is a pre-contractual period during which a prospective investor classified as a non-sophisticated investor may at any time revoke his/her/their expression of interest in an offer without giving a reason and without incurring a penalty. The reflection period is granted to ensure that non-sophisticated investors have time to reconsider their decision to invest in an offer without having any contractual obligations towards us or the project owner. The reflection period starts at the moment the investor has communicated his/her/their interest to invest in the offer on CrowdedHero and will expire after four (4) calendar days.

1. Sign-up and carry out the investor verification process.
2. Study the available investment opportunities and weigh up the risks.
3. Enter the amount you intend to invest, accept the terms and conditions of the relevant agreements related to the investment, and receive your share certificate after the successful campaign.

Investing in the offers published on our platform entails risks and can cause significant deviations from the expected returns. There is a significant risk of losing large amounts of any initially invested funds and of experiencing a partial or entire loss of the funds invested. You should carefully consider whether an investment is suitable for you in light of your knowledge and experience in financial and business matters, investment objectives, financial means and the risks that you are prepared to take and losses you are able to absorb. You should not invest in an offer published on our platform unless you fully understand the risks and potential consequences, including the potential risk of losing the entirety of the funds you have invested, and you are prepared to take such risks and able to bear such consequences. Please carefully consider the amount of your invested funds and act reasonably when investing.

Please see [CrowdedHero’s Risk Warning] to find out more about the risks you should consider and be aware of prior to making any investment through our platform.

We ask you to take time to carefully familiarise yourself with each of the risks and to properly assess whether investing in offers on our platform is appropriate to your particular circumstances. You should note that the risks described in [CrowdedHero’s Risk Warning] are not intended to be exhaustive.

Yes, this is possible. You can choose whether you want to invest as a private individual or as a company when registering on our platform.

Yes, you can. After an investor’s classification is applied during the registration process and at any time during the provision of the services, you may request to change your status and to be classified in a different investor classification category (i.e., to be reclassified from a non-sophisticated investor to a sophisticated investor and vice versa). You may do this by submitting the request to us via the platform and/ or by e-mail. For your convenience, we have created a template for such a request which is available on the platform Please see [CrowdedHero’s Investor Classification Policy] for more information about the change of the investor status.

As a general rule, all investors who do not comply with the criteria of the sophisticated investor set out in [CrowdedHero’s Investor Classification Policy] will be classified as non-sophisticated investors. CrowdedHero applies a priority protection level to investors classified as non-sophisticated. Such investors are afforded the greatest possible protection regarding their investment options through our services and will be notified of the risks that may occur when investing in offers. Investors classified as non-sophisticated should take a knowledge test and simulate their ability to bear any loss.

A sophisticated investor is an investor who has an awareness of the risks associated with investing in capital markets and adequate resources to undertake those risks without exposing his/her/themself to excessive financial consequences. We will apply sophisticated investor status to an investor who meets the criteria set out in [CrowdedHero’s Investor Classification Policy]. Please note that CrowdedHero does not assess the suitability and appropriateness of the offers to the interests of sophisticated investors. We are entitled to assume that an investor classified as sophisticated is able to independently obtain the information required to make the investment decisions in the offers and when receiving our services.

Debt-based crowdfunding or crowdlending is source funding for business activities by attracting a large number of investors (the crowd) to make moderate investments by means of issuing a loan to a company or individual through a platform. Crowdlending can keep the costs down for borrowers while potentially giving the lenders (the investors) improved rates of return.

Equity-based crowdfunding or crowdinvesting is source funding to a private company by attracting a large number of investors (the crowd) to make moderate investments in the company’s equity. In return, they receive shares in the company or a percentage of ownership. When the project is successfully realised, the revenues are distributed proportionally to the share invested by each investor. While crowdinvesting carries significant risk, it may be noticeably more profitable.

Crowdfunding is an alternative source of financing that attracts funding to business activities of different sizes and purposes by attracting a large number of investors (the crowd) making moderate investments. The provision of crowdfunding services generally involves three types of actors: the project owner that proposes the project to be funded, investors who fund the proposed project, and a crowdfunding service provider that, without taking on own risk, provides intermediation services that bring together project owners and prospective investors through an online platform.

CrowdedHero operates and manages a publicly-accessible information system via its website.  Without taking on its own risk, it facilitates the matching of investors with project owners.

CrowdedHero has informed and presented its operational model tothe Financial and Capital Market Commission of the Republic of Latvia. 

At the date, the ECSPR (Regulation (EU) 2020/1503 of the European Parliament and of the. Council of 7 October 2020 on European crowdfunding service providers) is in force, and we are in licensing process but have not yet regulated under crowdfunding service provider license. The Services are provided in a professional, fair and transparent way, we apply the requirements of the ECSPR when rendering the Services and to our internal operations.

To ensure that all services provided are professional, fair, and transparent, CrowdedHero has opted to apply the requirements of the [EU harmonized crowdfunding regulation] when rendering its services in addition to its internal operations policies and procedures.

CrowdedHero acts as a neutral intermediary, providing a safe, global marketplace for growing, non-listed companies. Both sides are winners, as investors benefit from a safe, high quality environment and robust due diligence checks on project owners, and entrepreneurs have access to clearly profiled investors. CrowdedHero provides Anti Money Laundering (AML) and Know Your Customer (KYC) checks. The platform offers investments into growing companies with promising outlooks and a high potential for regular dividend distribution and realistic exit scenarios over a 5 year period.

Investing in the offers published on our platform entails risks and can cause significant deviations from the expected return. There is a significant risk of losing large amounts of the initially invested funds or even of experiencing partial or entire loss of the funds invested. You should carefully consider whether an investment is suitable for you in light of your knowledge and experience in financial and business matters, investment objectives, financial means and the risks that you are prepared to take and the losses you are able to absorb. You should not invest in the offer published on our platform unless you fully understand the risks and potential consequences, including the potential risk of losing the entirety of the funds you have invested, and you are prepared to take such risks and able to bear such consequences. Please carefully consider the amount of your invested funds and act reasonably when investing.

Please see [CrowdedHero’s Risk Warning] to find out more information about the risks that you should consider and be aware of before making any investment through our platform.

We ask you to take time to carefully familiarise yourself with each of the risks and to properly assess whether investing in offers made available on our platform is appropriate in your particular circumstances. You should note that the risks described in [CrowdedHero’s Risk Warning] are not intended to be exhaustive.