What you get when you invest

When you invest through Crowdbase, you're putting your money into a business in exchange for financial instruments such as shares or bonds. This means you become part of the company's journey, either as a shareholder or as a bondholder. 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

Invest in Bonds and Earn Interest

When you invest in debt, you buy bonds or other debt securities issued by the company. The company agrees to pay interest and to repay the amount you invested at the end of a set period.

• Scheduled Interest Payments: Interest is set in advance, but payments depend on the company being able to pay.
• Repayment Priority: Bondholders may rank ahead of shareholders if the company fails, depending on the terms, but there may be little or nothing left to recover.
• Defined Term: The bond has a set maturity date, when your investment is due to be repaid.

Things to Keep in Mind

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

Convertible Investments

Debt That Can Turn Into Shares

On Crowdbase, convertible investments take the form of convertible loan notes. They start as debt but convert into shares later, usually when the company raises a larger funding round, at a discount and up to a cap agreed now.

• 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.

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 a successful campaign, your investment is recorded in your profile. On campaigns structured through a nominee, you hold the beneficial interest, shown in the certificate of beneficial ownership in your profile. Where a campaign is not structured through a nominee, you are registered directly, and the campaign documents say so.

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.