General

What is crowdfunding?

Crowdfunding refers to the practice and processes of funding a business by raising money from a large number of people via the internet. In equity crowdfunding, investors get shares in return for their contribution. In debt crowdfunding, they get bonds. Read more at What is crowdfunding.

Why use a platform such as Invesdor?

It saves time: Companies get an easy-to-use online tool through which they can raise funding and gain international visibility. Investors on the other hand get easy and quick access to a wide range of new investment opportunities.

How do I sign up?

By clicking on the top right "Sign up" button on our webpage, or by clicking on “Invest now” on a pitch page. You can sign up either as a private person or as an organisation.

Does Invesdor have a licence to operate from a financial supervisory authority?

Yes, Invesdor Ltd. is supervised by the Finnish Financial Supervisory Authority (licence number FIVA 39/02.02.00/2014).

What is the Nordic Crowdfunding Alliance?

The Nordic Crowdfunding Alliance is a partnership of key players in the Nordic crowdfunding scene committed to developing an ever more crowdfunding friendly Nordic region, while empowering and facilitating entrepreneurial growth. The alliance was officially established in March 2014 by the following founding members: Booomerang.dk (Denmark), Bidra.no (Norway), Invesdor.com (Finland), Karolina Fund (Iceland), Mesenaatti.me (Finland), and the University of Agder’s Center for Entrepreneurship (Norway). More information at Nordic-crowdfunding.com.

Investors

How do I invest?

Have the following information at hand:

  • online banking credentials/BankID/NemID/passport copy for authenticating yourself
  • bank account number in case we need to refund you
  • 5 minutes for a mandatory investment knowledge questionnaire (if not filled already)


When logged in to your user account, click on the “Invest now” button on the pitch page of the company you want to invest in. Afterwards, follow the instructions to input your information and make the payment. It's that easy!

Who can invest?

Generally, anyone over the age of 18 around the world. However, local jurisdictions can create exceptions. We urge investors who are not from Europe to consult their local authorities to ensure that their investments are compliant with their local regulations.

What does it cost to invest?

We charge a transaction fee the amount of which depends on the payment method you select. We do not charge any admin fees or carried interest for any profit you make down the line with your investments. Your profit is yours to keep.

Is there always a risk to lose money?

Yes, as with all investing there is risk of losing money. Unlisted growth companies are high-risk investments, and you should only invest money that you can afford to lose. In addition, you should diversify your risk by investing smaller sums into a larger number of companies; don't put all your eggs in one basket.

How long is a funding round open for investment?

It depends on the company’s needs, but generally 30-45 days.

What happens if the campaign I invested in does not reach its minimum goal?

The capital you invested is refunded in full. Transaction fees, however, are non-refundable.

Can I cancel my investment during the funding campaign?

A share or bond subscription is binding once submitted. A cancellation is possible only with permission from the target company receiving the investment.

Can I alter my investment after I have submitted it?

No, a share or bond subscription cannot be altered after it has been submitted and any changes necessitate a new subscription. If you want to invest more than you originally did, you can make another subscription. If you want to lower the original amount, please contact our customer support.

Is my investment publicly visible?

Your user name is displayed in the publicly visible investor list, but the amount you invested is not. You can change your user name in the profile settings of your Invesdor account.

How do I get a return on my investment?

Equity
Equity investments in growth companies are generally long-term investments in which investors make their returns as a result of increases in the value of the company’s shares, usually realised through liquidity events such as acquisitions or IPOs, or dividends.

Bonds
Bond investments offer a steadier return than equities. While bonds carry a lower risk in comparison to equity investments, their potential return is also lower. 

All investors who have subscribed for bonds through Invesdor receive interest payments according to the fixed interest rate determined during the bond offering. In all bond offerings on Invesdor, interest is paid every six months throughout the lifetime of the bond. At the end of the loan period, the original loan amount (the principal) is also paid back to bondholders. If the bond is listed on an aftermarket, bondholders can also potentially make a profit by selling their bonds at a higher price than what they originally paid.

For example, an investor investing 1,000 € with an 8 % interest rate would receive 80 € in interest per annum, so 40 € every six months. At the end of the loan period, the 1,000 € would be paid back to the investor. However, the investor also has the opportunity to sell their bonds on an aftermarket. The remaining interest payments and the principal would then be paid to the new owner of the bond.

Does Invesdor do due diligence (DD)?

Yes, Invesdor conducts its own Invesdor-DD for all its customers. The Invesdor-DD is a legal due diligence focused on verifying the company’s background as well as its biggest owners and their backgrounds. Invesdor does not conduct due diligence relating to the business opportunity, the market, or business-specific risks. Invesdor does not conduct due diligence relating to the business opportunity, the market, or business-specific risks. We urge each investor to always conduct their own due diligence in order to arrive at an educated investment decision.

How is my money handled?

Invesdor or one of its payment service providers keeps the money you invest on an escrow account until the closing of the funding round. If the funding round reaches its goal, the money is transferred to the Target Company. If the round doesn't reach its goal, the money is returned to you.

If you have paid by invoice, your money is kept on Invesdor’s escrow account, always separate from Invesdor’s own assets. If you have paid through online banking, your money is stored on an escrow account of the payment service provider until the closing of the round. If the funding round is successful, the service provider will transfer the money to Invesdor’s escrow account where they are pooled together with investments paid by invoice and transferred to the Target Company. If the minimum amount is not reached, the payment service provider or Invesdor will within 14 days return the investments to the bank accounts provided by the investors.

How are my shares/bonds stored?

When making an investment through Invesdor, there are three general alternatives for how the ownership information of your subscribed securities will be stored. No matter which alternative is used, Invesdor always sends investors a certificate of their share or bond subscription following the closing of a successful offering. The certificate contains the numbers of the individual shares that the investor has subscribed for, the date of subscription, the name of the target company, and the name of the subscriber.

Invesdor Ownersportal. In many cases, target companies prefer to outsource the upkeep of their shareholder or bondholder list to Invesdor. In such cases, the target companies use Invesdor’s electronic share register service Ownersportal. Ownersportal can be used by companies to keep track of their shareholder base, update ownership information and send invitations to general meetings. If you own securities in a company who is using Ownersportal, you can view the ownership information in your user profile.

Book-entry system. In some cases, most commonly IPOs, shares are stored in a book-entry system, such as Euroclear. Therefore, in order to invest in an IPO through Invesdor, you will need to have a book-entry account. You can open a book-entry account in a bank or investment firm that manages them. Invesdor does not manage book-entry accounts. If the target company's shares are registered in a book-entry system, you will be asked for your book-entry account number when making the share subscription. Following the closing of the offering, your shares will be registered to your book-entry account.

Shareholder list. Companies are required by law to maintain an up-to-date list of their shareholders. If a target company is not using Ownersportal or a book-entry system, the ownership information will be stored in this manner. At the end of a successful offering, Invesdor provides the target company with the updated shareholder list, after which the company assumes responsibility for maintaining the list.

How are returns taxed?

Taxation depends on where you are from. Check with your local tax authority and ask them how they treat subscriptions of new equities, dividends paid by private companies and profits made from selling shares of private companies. If you are from the UK, please refer to the UK-specific section on this page.

Invesdor does not report your subscriptions or returns realised to your tax authorities. Investors are solely responsible for their own tax reporting.

Is there a way to chat with companies I'm interested in?

Yes, the Investor Forum is the area for all discussion between target companies and their potential and actual investors. An Investor Forum is automatically created for each new target company. It can be accessed through the tab ribbon on the pitch page. During the round, the Forum is open for all logged in users. Once the round has been closed as successful, the Investor Forum will become accessible only to the target company and their investors. Questions and messages posted on the Investor Forum go directly to the target company who will then reply on the same Forum.

If you are interested in making a larger investment, you can also contact the company's Invesdor contact person (named on the pitch page) and he or she will put you in touch with the entrepreneur.

Businesses

What is needed to get started?

General criteria:

  • Registered company (Ltd, Oy, AS or equivalent), business legal and ethical
  • Committed team
  • Marketing-mindedness
  • Growth potential
  • No unresolved credit issues
  • Up-to-date online presence

Additional criteria for Crowdbonds:

  • 0.5+ M€ revenue
  • Positive net income

How do I get started?

Check out home.invesdor.com and use the contact form to apply for screening.

What's your fee?

Our fees depend on the funding readiness of the client company, but our pricing is always built on three parts: a fixed up-front listing fee, plus a percentage-based success fee and a fixed closing fee if the funding round is successful.

Why should I raise crowdfunding over other types of funding?

Compared to traditional funding models, equity and debt crowdfunding is a fast, hands-on way of raising funding and gaining visibility. In short, the value of crowdfunding lies in the combination of funding and marketing. Here's what businesses usually look to get out of crowdfunding:

  • Quick access to capital
  • International visibility and brand building
  • Customer and stakeholder engagement
  • Building a larger shareholder base in preparation for public markets
  • Product/service validation

What are the key benefits of crowdfunding with Invesdor

Compared to traditional funding models, equity and debt crowdfunding is a fast, hands-on way of raising funding and gaining visibility. In short, the value of crowdfunding lies in the combination of funding and marketing. Here's what businesses usually look to get out of crowdfunding:

Credibility. You increase your credibility in the eyes of investors by going through standardised process.

Speed. Investor negotiations can drag on forever. With us, you set the end date for your campaign, resulting in investors having a clear deadline and your funding round closing faster.

Visibility. A public funding campaign is a great way to build visibility in your target markets. Fudnraising with us combines money with marketing.

Hassle-free. Time spent fundraising is time spent away from your core business. Our digital processes, document templates and personal service let you focus on what's important.

Power of the crowd. A large group of engaged shareholders is a powerful marketing resource. They can recommend your products or services, contribute with their expertise and even become more active customers.

Investor screening. As an FSA-licensed company, we identify all investors and business owners investing or fundraising on our platform. You will always know who is investing in your company and that they are clean.

Building a larger shareholder base in preparation for public markets Product/service validation

What does it take to succeed in crowdfunding?

  • Lead investors
  • Good story
  • Simple company and investment structure
  • Good network
  • Well-planned marketing campaign

Read up on our case studies and see what others have done to succeed.

How long does the funding process take from start to finish?

It depends on how much investor material you have ready. Provided that you already have a good amount of marketing copy, images and a video that can be used for the crowdfunding campaign, you should prepare for a total duration of 3 months. The 3 months are divided in the following way:

  • 1–2 weeks for preparation. Includes Invesdor due diligence, campaign planning and uploading of materials onto the platform.
  • 1–2 weeks for silent marketing of the funding round to the company's networks and Invesdor's lead investors.
  • 4–6 weeks for public marketing.
  • 2–3 weeks for round closure including money transfers and documentation.

How does the process go in more detail?

Check out home.invesdor.com and use the contact form to apply for screening. Screening involves discussions with Invesdor's team and usually takes one week.

Once your case has been confirmed as a good fit for crowdfunding, contracts are signed and material (“pitch” in Invesdor lingo) preparation can begin. Materials include documents, business plans in text form and visuals. By default you do this yourself. Invesdor can also offer help as an additional service.

While the pitch is being prepared, Invesdor conducts its due diligence. Once the pitch is ready, due diligence has been finished and a marketing plan is in place, the equity or bond offering can open in Hidden mode. In Hidden mode, share or bond subscriptions can be made, but the pitch is not publicly visible on Invesdor.com.

In hidden mode, the target company sends the hidden pitch to its network and Invesdor to its lead investors. The purpose of the Hidden mode is to gather initial investments, generally 30% of the minimum goal. Once 30% has been reached, the pitch is made public.

In the public phase, it’s all about marketing activities from both the target company and Invesdor; it’s a joint effort. Social media, PR, email, phone calls, use whatever is needed to reach your investor target group. Invesdor supports you with its own marketing efforts.

Once a campaign reaches its goal and its subscription period expires or the offering is oversubscribed, Invesdor will start the closing process for the funding round. Round closure generally takes one to two weeks.

Can I combine other funding channels with crowdfunding?

Yes. In fact, we strongly suggest you do so. You can use the Invesdor platform to collect investments from different channels and pool them together in the same funding round.

Does Invesdor do due diligence (DD)?

Yes, Invesdor conducts its own Invesdor-DD for all its customers. The Invesdor-DD is a legal due diligence focused on verifying the company’s background as well as its biggest owners and their backgrounds. Invesdor does not conduct due diligence relating to the business opportunity, the market, or business-specific risks.

What is the Investor Forum?

The Investor Forum is an area for discussion between target companies and their potential and actual investors. An Investor Forum is automatically created for each new target company. It can be accessed through the tab ribbon on the pitch page. During the round, the Forum is open for all logged in users. Once the round has been closed as successful, the Investor Forum will become accessible only to the you and your investors. You receive a notification whenever a message is posted on the Forum. Try and reply without delay; the people on the forum are your shareholders and want you to succeed!

UK specific

What is the SEED Enterprise Investment Scheme (“SEIS”)?

The Seed Enterprise Investment Scheme (often referred to as SEIS) was designed to boost economic growth in the UK by promoting new enterprise and entrepreneurship. SEIS offers great tax efficient benefits to investors in return for investment in small and early stage startup businesses in the UK.

1. Income Tax Relief; Investors can receive up to 50% tax relief in the tax year the investment is made.
2. Loss Relief; In the event the company fails, the SEIS scheme protects the investors through a mechanism called Loss Relief. The net loss after the 50% Income tax relief is removed can be applied against your taxable income in the year the loss is realized or in the previous year to the loss.
3. Exemption from Capital Gains Tax; There is zero Capital Gains Tax on the earnings from an SEIS investment as long as it has been held for a minimum of 3 years.

Here are some of the most important things to consider.
• A company can raise no more than £150,000 in total via SEIS investment
• SEIS investors can place a maximum of £100,000 in a single tax year
• Investors must not hold more than a 30% stake in the company in which they invest.
• The company seeking investment must be based and have a permanent establishment in the UK
• The company has to trade in an approved sector
• The company must have fewer than 25 employees
• The company must be no more than two years old.
• The company must have assets of less than £200,000.

What is the Enterprise Investment Scheme (“EIS”)?

Whilst SEIS was designed to encourage investments into to the early seed stage by providing a high Tax Income Relief, EIS was designed to promote investment into growth companies. It allows for much larger investment compared to EIS, but at a lower Tax Income Relief.

1. Income Tax Relief; Investors can receive up to 30% tax relief in the tax year the investment is made.
2. Loss Relief; In the event the company fails, the EIS scheme protects the investors through a mechanism called Loss Relief. The net loss after the 30% Income tax relief is removed can be applied against your taxable income in the year the loss is realized or in the previous year to the loss.
3. Exemption from Capital Gains Tax; There is zero Capital Gains Tax on the earnings from an EIS investment as long as it has been held for a minimum of 3 years.

Here are some of the most important things to consider.
• A company can raise no more than £5,000,000 in total via SEIS, EIS and Venture Capital Trusts.
• SEIS investors can place a maximum of £1,000,000 in a single tax year
• Investors must not hold more than a 30% stake in the company in which they invest.
• The company seeking investment must be based and have a permanent establishment in the UK
• The company has to trade in an approved sector
• The company must have fewer than 250 employees
• The company must be conducted on a commercial basis with the aim of making profit.
• The company must have assets of less than £15,000,000 before share issue

How to Claim Your SEIS and EIS Relief

Invesdor is an European platform connecting worldwide investors with opportunities to invest in companies from the UK, Norway, Sweden and Denmark.

UK investors are welcome to invest in any of our opportunities listed on the platform. If you want to claim your SEIS and EIS Relief , however, it is important to understand that these are only applicable to UK businesses based in the UK.

Similarly, Invesdor attracts investors from over 50 countries worldwide. These are welcome to invest in any UK opportunities listed on the platform, but will not benefit from the SEIS and EIS tax relief unless they have taxable income in the UK.

Before you can claim your relief you must receive your SEIS3 and EIS3 form from the company in which you have invested. You then just take down the details from these forms and claim can be made on the Self-Assessment Tax Return.

We recommend that you seek advise from an independent financial advisor before investing in an EIS company. The SEIS/EIS tax relief depends on an individual’s circumstances and may change in the future. It is also important to understand the the availability of SEIS/EIS depends on the the company invested in maintaining its qualifying status for during the SEIS/EIS period.

Seeking Independent Financial Advise - Where can I find an UK advisor?

We truly believe in seeking advice from an independent financial advisor before investing into a company. There are many risks involved in investing in small start-ups and growth companies. Most startups fail, and if you invest in a business through Invesdor, it is significantly more likely that you will lose all of your invested capital than that you will see a return of capital or a profit. You should not invest more money through the platform than you can afford to lose without altering your standard of living.

Here are some great links to where you can find your adviser in your region.

Here you will find the UK’s largest choice of IFAs, whole-of-market financial advisers, independent mortgage brokers, solicitors and accountants.

https://www.unbiased.co.uk
https://www.vouchedfor.co.uk/

Invesdor is not connected to any of these platforms and we do not receive any fees or other returns for sharing these links. We just think they do a great job in helping you find an financial advisor.