Understanding deal terms

At Crowdbase, we understand that not everybody has a financial background or is an investment professional, so we strive to present investment information clearly and transparently.

Within each campaign, you will find all the necessary information to make an informed investment decision, including the business plan, financials, team, and more.

Key Investment Information Sheet (KIIS)

The KIIS is the most important investment document in a crowdfunding campaign, is legally binding, and includes important information about the investment opportunity. It is prepared in accordance with the EU Crowdfunding Regulation.

The KIIS is intended to help investors make informed decisions by providing a standardised and easy-to-understand summary of the key characteristics of the investment. It is designed to be concise, clear, and comparable across crowdfunding campaigns.

Below, we analyse some key investment terms and information you can expect to find in the KIIS of each campaign.

Investment type

The investment type refers to the specific category or class of investment from which an investor can choose. Many different investment types can be available on the platform, each with unique characteristics, risks, and potential returns.

Learn more about investment types.

Funding goal

Minimum funding goal

The minimum amount the company needs to raise in order for the campaign to be considered successful. If the company does not reach its minimum funding goal by the campaign’s deadline, the campaign is considered unsuccessful, and all investments are returned to the investors in full.

Maximum funding goal

The maximum amount the company is willing to raise. If this amount is reached at any time before the campaign deadline, the campaign ends, and no more investments can be made.

Campaign deadline

The campaign deadline of a crowdfunding campaign is the date and time at which the campaign will end, and no further contributions or investments will be accepted. The campaign deadline is typically set by the campaign’s project owner and is an important aspect of the campaign planning process.

If the campaign has achieved at least its minimum funding goal by its deadline, the funds raised will be transferred to the project owner, and the investment securities will be issued to investors.

On the other hand, if the campaign does not reach its minimum funding goal by its deadline, the funds are returned to the investors without penalties or additional fees.

Minimum and maximum investments

Each campaign has a specified minimum and maximum investment amount per investor account. Although Crowdbase encourages project owners to set the minimum investment amount of their campaign at €100 for startups and €500 for real estate projects, project owners can choose to set a higher minimum investment amount. Project owners can also set a maximum investment amount to prevent large investors from dominating the campaign.

Financials

The Financials section presents the financial performance (including audited accounts where available) of the company over the last three years, as well as key financial ratios in accordance with International Financial Reporting Standards (IFRS).

Risks

Investing of any form is inherently risky. Investing in early-stage ventures is considered among the riskiest investments, as there is little certainty of the company’s success.

In the risks section, we identify and explain the key risks associated with each crowdfunding campaign including project risk, sector risk, risk of default, liquidity risk and others.

Learn more about potential risks.

Investor rights

Investor rights refer to the legal entitlements that investors have when they invest in a company. These rights are designed to protect minority investors and ensure that they are treated fairly and transparently by the company.

Key investor rights include:

• Right to receive accurate and timely information about the company’s financial condition and performance.
• Right to participate in shareholder meetings and vote on important issues.
• Right to receive fair and equal treatment in any transactions related to their investments or future funding rounds.
• Right to receive dividends or other distributions from the company.
• Right to transfer or sell their shares freely.

Overall, investor rights aim to provide investors with the necessary tools and protections to make informed decisions and hold companies accountable for their actions.

Ownership structure

Ownership structure refers to the way in which ownership of a company or organisation is distributed among its shareholders. It includes information on the number of shareholders, the number of shares held by each one, and the voting rights attached to those shares.

In the ownership structure section, we present the current ownership structure of the company, including the number of shares held by each shareholder and the percentage of the company’s total shares that each shareholder owns.

In the KIIS, we showcase the ownership structure of each company before and after the crowdfunding campaign.

Any other information related to the investment in a specific crowdfunding campaign is listed in the KIIS. Any information or terms not included in the KIIS may not be legally binding.

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