Frequently Asked Questions

How can we help you?

For investors

To fill out a selling or buying application, navigate to your investor account on CrowdedHero to the section Secondary market. From there, compose a listing indicating whether you wish to sell or buy shares from a specific company, number of shares and price of one share. Your order will then be displayed on the Secondary Market for other users to view.

The secondary market is a platform or space where investors can buy or sell previously issued securities, such as shares of a company. In the context of CrowdedHero, it is a dashboard-style marketplace where investors can either advertise their intention to sell company shares they've previously purchased or express their interest in buying shares from other investors.

According to the legal enactments of the Republic of Latvia, a capital company registered in Latvia pays corporate income tax (CIT) on distributed dividends at the rate of 20%. When determining the base subject to corporate income tax, the value of the taxable object is divided by a coefficient of 0.8. Residents of Latvia - natural persons, when receiving dividends, shall not pay personal income tax, because the CIT paid by the capital company also includes this tax.


Non-residents - natural persons may be obliged to pay personal income tax on dividends paid by a capital company registered in Latvia at the rate and in accordance with the procedure stipulated in the legal enactments of the country of residence.
For non-resident legal entities, even if the country of registration has a lower CIT tax rate, a tax rate of 20% will be applied when paying dividends from a capital company registered in Latvia.

Please note that the above information is of a general nature provided for informative purposes and is not intended to constitute a recommendation or advice. We do not provide advice or recommendations on the aspects of paying dividends through the Platforms, other than advising on the technical use of the Platform. This means, that we cannot provide any legal, tax, or other advice in relation to your membership or investments and the dividends you receive through the Platform. Neither the Platform nor any correspondence we provide to you are meant to be advice or recommendations. If you need  advice, you should consult appropriate professional financial, legal, taxation, or other advisors.

We are well aware that business angels in Latvia and other countries particularly value comprehensive, but at the same time, specific, concise and clearly structured information about the relevant investment projects. Taking this into account, we also scrupulously approach the description of each project, so that not only the Baltic business angels, but also all the investors of the CrowdedHero angel league, can promptly familiarize themselves with each of the investment projects on our platform.

The descriptions contain the following information:

  • Company rating, required and collected amount of money, equity, price of one share, current number of investors;
  • Minimum investment amount;
  • Basic information about the company (name, registration number, industry, website);
  • Success and risk factors;
  • Business description;
  • A concise description of the team or company employees;
  • Documents (information available by logging into the platform);
  • Forum (information available by signing in to the platform);
  • Shares (information available when logging into the platform.

Not only Baltic investors and Latvian business angels can access the relevant information, but every person who has decided to become an investor in one of the projects on the CrowdedHero platform and is registered.

Want a more detailed answer to the question of who is an investor and what benefits do business angels in the CrowdedHero Angel League receive? Contact us and get all the answers you need!

Private investors admitted to CrowdedHero's Angel League receive a number of benefits. Here are the most important of them:

  • Visiting companies in person - so that business angels can get to know companies and their business ideas better, we offer the opportunity for Angels league members to visit them together in person;
  • Personal manager – this specialist will help you during investment and monitoring;
  • Special events and meetings with other investors - every business angel can meet similar investors, new and experienced business owners, as well as industry leaders at joint events, gaining diverse and extensive knowledge;
  • Establishing new contacts - thanks to the already mentioned visits and events, it is possible to regularly add to your contact list.

These are just some of the advantages that receive CrowdedHero's Angels League investors from Latvia and other countries.

 

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 proceed 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.

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)

We do not provide investment advice or personal recommendations of any form with respect to one or several investment opportunities available on CrowdedHero; neither do we make investment decisions on your behalf.

Investing in the offers published on CrowdedHero entails risks and can cause significant deviations from an expected return. We advise you to carefully analyse and evaluate all associated risks, consider their impact and consequences, and seek independent and professional advice:

  • if you do not fully understand the risks of, or services related to, investing through CrowdedHero;
  • if you feel you have a lack of knowledge, skills or experience, or doubt about the investment you are willing to make;
  • to ascertain that any investments made and held through CrowdedHero remain suitable for you.

Please note that we do not provide legal or tax services. We recommend that you seek independent and professional legal or tax advice both before and after investing to comply with the applicable laws.

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.

No, you cannot. According to the relevant anti-money laundering regulations, every investor must be identified.

Yes, you can. Investors residing outside Latvia can invest in offers available on CrowdedHero, with the exception of investors based in the United States, who cannot invest for regulatory reasons. All investors must identify themselves in accordance with the applicable anti-money laundering regulations.

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.

Any person of legal age and status can invest in the offers available on CrowdedHero provided that he/she/they:

  • open an account in line with the instructions given during the application process;
  • give all information requested during the application process on our website;
  • comply with our [Terms and Conditions].

Please see [CrowdedHero’s Terms and Conditions] to find out more about eligibility requirements for investors.

Pls...

Investments into company capital are only possible for verified users who have submitted full KYC data. User information is used during the registration of project owner company shares on a CrowdedHero user’s name.

Crowdedhero’s KYC, AML and personal data protection procedures and policies are developed in full compliance with [EU harmonized crowdfunding regulation].

No, you do not need to contact us if you have changed your postal address. All you need to do is update your address on the User cabinet/ Profile. Please note that in order to ensure compliance with anti-money laundering regulations we may request a proof of address.

  1. Go to User cabinet/ Account settings
  2. Enter current and new password, then click Edit

  1. Check your spam or junk folder and any tabs in your inbox
  2. Double check the submitted e-mail address for any mistakes
  3. Send us a message at support@crowdedhero.com

Do you require further assistance?

Our team answers on working days, 9:00–17:00.

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