Understanding deal terms

At Crowdbase, we know that investing can seem complicated, especially if you're new to it. That's why we present all investment information clearly and simply, so you can make confident decisions.

In each campaign, you'll find everything you need to know, like the pitch, analysis, details about the team, and more.

Key Investment Information Sheet (KIIS)

The KIIS is the most important document in any crowdfunding campaign. It is prepared by the company raising funds, in the format set by the EU Crowdfunding Regulation, and we check it before a campaign goes live. It contains the crucial details about the investment opportunity and helps you compare different campaigns.

Here's a breakdown of key terms you'll find in the KIIS:

Investment Type

This tells you what kind of investment you're making. Common types include:

• Equity: Owning a piece of the company.
• Debt: Bonds or other debt securities issued by the company.
• Convertible Instruments: A mix of equity and debt. Each type has its own risks and potential rewards.

Each type has its own risks and potential rewards.

Learn more about investment types.

Funding goal

Minimum Funding Goal

• The least amount the company needs to raise for the campaign to succeed.
• If this goal isn't met by the deadline, all your money is returned, with no fees or penalties.

Maximum Funding Goal

• The most the company aims to raise.
• Once this amount is reached, the campaign closes to new investments.

Campaign Deadline

This is the end date and time for the campaign. After the deadline:

• If Minimum Goal Met: The company receives the funds, and you receive your investment documents.
• If Minimum Goal Not Met: Your investment is refunded in full.

Minimum and Maximum Investment Amounts

Each campaign sets:

• Minimum Investment: The smallest amount you can invest (often starting at €100 for startups and €500 for real estate).
• Maximum Investment: The largest amount you can invest, ensuring fairness and diversity among investors.

Financials

This section shows the company's financial health, including:

• Past Performance: Financial results from the past few years.
• Key Figures: Important numbers that indicate how the company is doing.

Understanding the financials helps you assess the company's stability and growth potential.

Risks

All investments come with risks, especially in early-stage companies. In this section, the company sets out potential risks, such as:

• Market Risks: Changes in the industry or economy that could affect the company.
• Financial Risks: Possibility that the company may not meet its financial obligations.
• Liquidity Risks: Difficulty in selling your investment quickly.

Being aware of these risks helps you make informed decisions.

Learn more about potential risks.

Investor Rights

Your rights depend on the instrument and are set out in the KIIS. They may include:

• Information Rights: Access to updates on the company's performance.
• Voting Rights: Ability to vote on important company matters (if applicable).
• Dividends: Eligibility to receive a share of profits (if the company distributes them).
• Transfer Rights: Whether and how you can sell or transfer your investment. In practice there may be no buyer.

These rights protect you and ensure fair treatment.

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

This shows who owns the company and how much they own, both before and after the crowdfunding campaign. It includes:

• Shareholders: Names of major owners.
• Ownership Percentages: How much of the company each person owns.

Understanding this helps you see how your investment fits into the bigger picture.