What you get when you invest

When you invest through Crowdbase, you're putting your money into a business in exchange for financial assets like shares or bonds. This means you become part of the company's journey—either as an owner or a lender. The specifics of your investment are outlined in an agreement between you and the company, with Crowdbase helping to make the process smooth and transparent.

All investments on Crowdbase comply with the EU Crowdfunding Regulation. Each campaign provides a Key Investment Information Sheet (KIIS) that details the terms and important information about the investment opportunity.

Types of Investments Available

At Crowdbase, you have several ways to invest, each with its own benefits and things to consider. Here's what you can expect:

Equity Investments

Become a Part-Owner of the Company

When you invest in equity, you're buying shares of a company, which means you own a piece of it. As the company grows and becomes more valuable, so does your share.

• Potential for Growth: If the company does well, the value of your shares can increase, potentially leading to significant returns.
• Voting rights: Equity investors may have the right to vote on important company decisions, such as electing board members, approving mergers or acquisitions, and issuing new shares.
• Dividends: Some companies may share profits with shareholders through dividends.
• Long-Term Investment: Equity investments are usually held over a longer period, giving the company time to grow.

Things to Keep in Mind

• Higher Risk: Startups and early-stage companies come with higher risk; success isn't guaranteed.
• Ownership Dilution: If the company issues more shares later, your ownership percentage might decrease.

Debt Investments

Lend Money and Earn Interest

When you invest in debt, you're essentially lending money to a company. In return, the company agrees to pay you back with interest over a set period.

• Regular Interest Payments: You'll receive scheduled interest payments, providing a steady income.
• Lower Risk Than Equity: Debt investors are often prioritised for repayment over equity investors if the company faces financial issues.
• Defined Term: The loan has a set maturity date when your initial investment is repaid.

Things to Keep in Mind

• Risk of Default: There's a chance the company might not be able to repay the loan or interest.
• No Ownership: You won't own any part of the company or have voting rights.

Convertible Investments

A Blend of Ownership and Lending

Convertible investments start as debt but can be converted into equity (shares) later on, often when the company reaches a specific milestone.

• Initial Interest Payments: You may receive interest payments like a regular debt investment.
• Potential for Ownership: If converted to equity, you become a shareholder and can benefit from the company's growth.
• Flexibility: Offers the security of debt with the potential upside of equity.

Things to Keep in Mind

• Conversion Terms: Details about when and how conversion happens are outlined in the investment agreement.
• Complexity: Convertible investments can be a bit more complex than straightforward equity or debt.

Receiving Your Investment Certificate

After your investment is successfully processed, you'll receive an Investment Certificate. This important document confirms your investment in the company or project, whether it's through equity, debt, or convertible instruments.

What's Included

• Your Details: Your name and contact information.
• Investment Details: The company's name, the type of investment (equity, debt, or convertible), the amount you've invested, and any specific terms associated with your investment.
• Date of Issue: The date when your investment was finalised.

Why It's Important

• Proof of Investment: Serves as official confirmation of your financial commitment.
• Record Keeping: Helps you keep track of your investments for personal records, tax purposes, or future reference.

Digital or Physical Format

• Digital Certificates: Typically issued electronically for convenience and ease of access.
• Physical Certificates: Available upon request, depending on the company's policies.