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Popular Questions

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.


You should provide information about your company, describe the expected goals of the crowdfunding campaign, including an attracted capital distribution plan, and provide your contact details.


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 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 2 million, you could offer 10% of your equity for EUR 200,000.


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

To apply for funding, a company should submit an application via the CrowdedHero platform to pass a review. In the second round, an interview with the company forms an important part of the process. This is the point at which our experience helps us understand a number of key criteria, such as whether an exit is possible, or if a company will be able to pay out dividends, in addition to many more important nuances. During stage 3, the full legal and financial due diligence process starts. CrowdedHero draws on additional expertise from industry leaders to provide the best possible analysis of the project owner’s past and current financial and legal performance, as well as a detailed evaluation of the investment plan. Finally, an investment committee consisting of 4 experts votes on project onboarding.


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.


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