What is Crowdfunding?

Crowdfunding is an alternative financing method for companies. Below we explore how crowdfunding works in practice, its benefits and some frequently asked questions.

What is Crowdfunding?

“Crowdfunding is the use of small amounts of money from a large number of individuals to finance a new business venture.”

The four types of Crowdfunding

There are four different types of crowdfunding. Crowdbase offers investment-based crowdfunding which includes equity and debt crowdfunding.

Equity crowdfunding

With Equity Crowdfunding, investors receive an ownership stake in the company proportional to their investment. Crowdbase offers equity crowdfunding investments on its platform.

Debt crowdfunding

With Debt Crowdfunding, investors lend money to the business, expecting to receive it back with interest over time. Crowdbase offers debt crowdfunding investments on its platform.

Rewards-based crowdfunding

Rewards-based Crowdfunding offers campaign backers different levels of rewards based on the amount committed. These rewards can range from a thank you letter to a final product. Crowdbase does not offer rewards-based crowdfunding on its platform.

Donation crowdfunding

Donation-based Crowdfunding is the method where individuals donate money for specific causes and charities. They have the opportunity to effect positive change in their communities, indirectly receiving non-financial benefits. Crowdbase does not offer donation-based crowdfunding on its platform.

Find a campaign

Find investment opportunity

Browse our wide range of investment opportunities in real estate, startups, and small and medium-sized enterprises.

Due diligence

All crowdfunding campaigns undergo an extensive due diligence process to guarantee the quality of projects to our investors.

Your choice

Choose an appropriate crowdfunding campaign based on your risk appetite profile, social impact and personal preference.

Invest as much as you want

Pitch

Read the comprehensive crowdfunding page describing the company, their vision and management team.

Campaign analysis

Crowdbase provides you with an executive summary of the opportunities and risks of each campaign.

Invest

When you feel ready, invest! You can start investing with as little as €100, so you can diversify risk among many projects.

Capitalise on your returns

Community

Stay in touch with the companies you have invested in and see their progress and effect on our community.

Bulletin board

You can sell your investment securities by finding interested buyers through our bulletin board or outside our platform.

Get paid

If the business is successful, it can pay back investors through dividends, an IPO, an outright sale or a management buyout.

Benefits of Crowdfunding

Investment-based Crowdfunding can offer a wide range of benefits that are not available with other types of investments.

Impact your community

Invest in projects you support and see them take shape in your community

Potential returns

Invest in some of the most promising up-and-coming ventures

Diversification

Invest in opportunities that deviate from traditional asset classes

Access

Gain access to otherwise unattainable investment opportunities

Direct ownership

Investors have direct ownership and control over their investments

No fees

Investing in crowdfunding campaigns through Crowdbase is free of charge

Frequently Asked Questions

Still have questions? Visit our FAQ page or contact us!

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