What are better investment opportunities for me

Frequently asked questions

General FAQs

FAQs for investors

FAQs for companies

 

General

What exactly does the Invesdor Group do?

We are a digital service company for investments. We offer an online platform on which private and institutional investors can invest in unlisted European companies with great growth potential that are looking for financing. We want to modernize investing, make it easily accessible and make it transparent and fair.

We offer services for both investors and companies looking for financing. We offer investors the opportunity to invest in exciting companies, from fast-growing start-ups to established companies. Our minimum deposits differ in the individual financing campaigns and start at amounts of a few hundred euros. For companies, we offer various financing options in currently eight European countries, in connection with 60,000 registered investors on our platforms.

Invesdor also offers unique Platform-as-a-Service (PaaS) products for financial institutions. That means: We make our technological solutions available to our PaaS partners, which they can use when designing their financing campaigns. Invesdor meets the MiFID II requirements of the European Union, so that our PaaS partner companies do not need their own license to use our platform.

You call yourselves Invesdor Group. Why is it a ‘group’, are several companies involved?

Yes exactly. The Invesdor Group consists of the Helsinki-based parent company Invesdor Oy and its wholly owned subsidiary Finnest GmbH, with which we merged in spring 2019, as well as Invesdor Services. The group's headquarters are in Helsinki, with further branches in Vienna and Stockholm.

Is Invesdor approved by an official authority?

Yes, we are approved by the Finnish Financial Supervisory Authority (license number FIVA 39 / 02.02.02.00 / 2014) and are also monitored by them.

Why invest in companies that are not listed on the stock exchange?

Listed companies are often seen as well-established and stable investment opportunities. When companies are first listed on a stock exchange, it can also be difficult for small investors to purchase stocks, as institutional investors are usually preferred.

Unlisted companies offer something else. Private investors have a better chance of investing in unlisted companies before going public (initial public offering). If these companies are sustainably successful, an investment can bring attractive profitability. The downside of this is that unlisted companies, especially those at an early stage, are viewed as high-risk investments: some grow strongly, but others also fail.

There are also differences among unlisted companies. Some of them are primarily interested in growth and are looking for funding opportunities for new and unique business ideas; others are established companies with a long history and a stable business area that have chosen not to go public for various reasons. Unlisted companies can offer an opportunity to diversify their investment portfolio, make active investments, look for the "next big thing" and support young companies that are not afraid of challenging established players in the market.

What are the different types of investment opportunities? How are they different?

There is a wide variety of investment options, but at Invesdor.com we focus on two of them: stocks and bonds. Equity campaigns are financing campaigns in which the target company offers its shares for sale for a fixed price per share. In an equity campaign, you acquire a stake in the company with the expectation that the value of the company - and with it the value of your shares - will increase.

Bond campaigns are funding campaigns in which the target company offers bonds with a fixed interest rate and time frame. The company pays the bond's interest (e.g. annually) to the bondholders. At the end of the bond's term, bondholders receive back the final interest payment and the original investment amount. In a bond campaign, you invest outside capital in a company and get it back on the agreed terms.

These are just simplified descriptions. The terms and details of the various stocks and bonds campaigns may differ from what is shown here. Always familiarize yourself with the exact terms of the campaign before investing.

How can I get a return on different types of investments?

When acquiring shares, returns are usually realized when liquidity events (e.g. acquisitions or IPOs) take place. Another possible way to get returns is by paying dividends. Let's take an example of the return on a stock investment.

You purchase 100 shares in a company for € 10 per share, so you invest a total of € 1,000. A year later, the company has a profitable year and decides to pay its shareholders a dividend of € 1.50 per share. With 100 shares you will receive a dividend of € 150. A few years later, the company decides to list itself on the stock exchange, which arouses great interest: Before going public, you will receive an offer from another investor for your shares at a price of € 12 per share. You sell your 100 shares for a total of € 1200 and make a profit of € 200. Together with the dividend, you have made a profit of € 350.

In the case of bonds, the return is made through interest payments that the investor receives in accordance with the bond terms and conditions. For example, you invest € 1,000 in a 3-year bond with an interest rate of 6%. The annual interest is 6% of € 1,000, i.e. € 60. At the end of the 3-year term, you will receive the final interest payment and the originally invested amount of € 1,000 (also known as capital). With three years and an annual interest rate of € 60, you would make a profit of 3 x € 60 = € 180.

I'm not sure what a particular word or phrase means - is there a good resource that explains investment terminology?

You can start with our glossary, which explains some important investment terms. If the word or phrase you are looking for is not found there, you should usually be able to find an online resource. If you are still not sure and the word seems to be in an unclear context, e.g. in the case of investment documents, we recommend that you contact the company that prepared the documents directly.

 

For investors

 

There are many investment platforms. Why choose Invesdor?

We are glad that you asked! The Invesdor Group offers a variety of investment opportunities from different industries, in several European countries in the form of stocks and bonds. We are a MiFID II-licensed investment service provider aiming to support companies in 30 countries in the European Economic Area. The Invesdor Group is currently active in six countries: Finland, Austria, Sweden, Denmark, Norway and Germany.

In addition, we are a completely digital investment service. We want to make investments fair, transparent and easy for everyone, without too big hurdles. Once you have registered and confirmed your identity, all you need is an internet connection and a laptop or smartphone to invest in ambitious European companies, with minimum investment amounts starting from a few hundred euros.

What do I need to invest on Invesdor.com?

You must be over 18 years of age, authenticate your identity on our platform (e.g. with a copy of your passport or your online banking login information), provide your account number (in case we need to refund money) and take around five minutes to process one to answer the mandatory investment questionnaire. Of course, you also need the money to invest!

In general, anyone from all over the world can invest on our platform. However, local jurisdictions may have restrictions: we recommend investors outside Europe to check with their local authorities to ensure that their investments comply with local regulations.

Does it cost anything to invest on Invesdor?

We charge a subscription fee to cover payment processing costs when investing on invesdor.com. Our general subscription fee is 1% of the amount invested, for both stocks and bonds. However, to support early investment in funding campaigns, we do not charge a fee until the campaign reaches 100% of its minimum target. Only then do we charge a subscription fee of 1% of the amount invested.

Whenever there is a subscription fee, we charge a minimum of € 5 (or SEK 50, NOK 50 or DKK 40 if you invest in one of these currencies) and a maximum of € 500 (or SEK 5000, NOK 5000 or DKK 4000 ). Example: You invest € 300 in a campaign, but there is a minimum of € 5 subscription fee as the 1% of your investment would only be € 3 and fall below the minimum fee. If you instead invest € 70,000 in a campaign you will only be charged € 500 as 1% of your investment would be € 700, which is more than the maximum fee.

The subscription fees are non-refundable, although the amount invested is self-refundable. We do not charge any additional fees such as management fees or participations from the potential investment gains: if the investment makes a profit, it goes to you.

What currencies and payment methods can I use to invest?

The list of payment options may vary depending on the funding campaign; the target company can request which payment options we accept or not for the given campaign.

The currency in which your investment will be made is the one listed on the target company's campaign materials - typically EUR, SEK, NOK or DKK. You can use the online banking services of the main Nordic banks, all major credit cards or pay by invoice. If your local currency differs from the one stated in the funding campaign, your payment service provider should be able to calculate the amount in your local currency.

You cannot currently pay via PayPal - sorry!

Are my investments visible to others on the Invesdor platform?

Your username will appear in the list of public investors, but the amount you invested will not. You can change your username in the profile settings of your Invesdor account. However, when you invest in a successful funding campaign, the target company receives a list of investors that includes your information and identity.

How do you choose the companies for your platform? Do you check their background and reliability?

We carefully select our target companies and regularly reject applicants because they identify problems with their background or business model, or if they would not be a suitable opportunity for our investors. All target companies are carefully screened by our Deal Flow Team and presented to our Investment Committee, which makes the final decision on which companies to include on our platform.

Our legal and compliance team carries out legal due diligence (DD) controls and checks the background of companies and their largest owners. For more information on what's included in Invesdor DD, click here. Should significant problems arise during the DD exams, we reserve the right to terminate the preparations and cancel the funding campaign.

Please note: We do not perform due diligence on company-specific risks, business opportunities or the market. We encourage investors to always perform their own due diligence in order to make informed investment decisions.

I saw Company X have a funding campaign on their platform - would it be a good investment?

Regarding certain campaigns, we cannot comment one way or another. We generally do not offer investment advice on financing campaigns on our platform. We recommend that you analyze the documents provided by the respective target company and find out about the industry in which it operates.

Invesdor sometimes publishes articles on Industry Issues that address a line of business related to one or more of our target companies. They can serve as a starting point for further research, but please note that these articles are offered for informational purposes only: we cannot independently review the investment materials, and we do not claim that the articles provide a complete overview of any company or industry. Investment decisions should only be made on the basis of an in-depth review of the deposit material concerned.

I would like to start investing, but I haven't found any campaigns that are right for me in the Invesdor selection. Can I find something that might interest me in the near future?

We're sorry to hear that you haven't found anything suitable (yet)! New campaigns are regularly started on our platform - we recommend that you subscribe to our newsletter in order to stay informed about upcoming and ongoing campaigns.

What kind of companies are running funding campaigns on your platform?

Many of the companies looking for funding through Invesdor.com are early growth companies, but you will also find established names on our platform on a regular basis. We also welcome a wide range of industries. The only type of companies we regularly turn off are companies with problematic business practices or questionable ethics - we want to offer investment opportunities that solve problems, not create them. Even if a company is in a very early phase and is not yet operational, it is very unlikely that it will be represented on our platform. For a more detailed look, take a look at our past campaigns to see which companies we have worked with so far.

I saw an interesting company on your platform, but I would like to think about it for a while if I actually want to invest. How long will the campaign stay open?

The campaigns are usually available on our platform for 30-45 days. You should find an end date for this campaign on the investment page. However, if the campaign hits its maximum target before the deadline and the company does not decide to increase the target, you will no longer be able to invest in the campaign. Investing early in our campaigns also has certain advantages: Investments that are made before the campaign reaches its minimum target (100%) can be made without investment costs, so that our usual subscription fee of 1% does not apply. We also recommend that you keep an eye on the progress of the campaign: the only way to ensure that you can make your investment successfully is to make it on time.

Investing problems, questions and practical questions on Invesdor.com

Can I cancel or change my investments?

As soon as you have submitted your subscription for a share or bond, it is considered binding and you can no longer change or cancel this step. If you want to increase your investment, you can make another investment within the same campaign (assuming it is still open and taking subscriptions).

A subscription can only be canceled if the target company approves it. Sometimes the terms of the campaign can change significantly - in such a situation you have the option to cancel your subscription. However, your subscription fee is non-refundable.

I should have received a refund on my investment - where is it? Should I contact the target company to get my money back?

When you invest through Invesdor, the money is first placed in an escrow account until the campaign is over. In the event of a successful campaign, the payment will be made to the target company after the campaign is completed.In the event of a refund, the money will remain in the escrow account and will be returned to the bank account you specified within 14 days. If you have not received the money after 14 days, please contact us and we will find out why.

I made an investment, but the funding campaign did not reach its minimum target / exceeded its maximum target / the conditions of the campaign have changed significantly. What's happening now?

Sometimes a campaign doesn't achieve its minimum goal. In this case, the amount you invested will be returned to your bank account. However, the subscription fee is non-refundable (see question "Does it cost anything to invest through Invesdor?").

A campaign can also go beyond its maximum goal. This is known as oversubscription: there is more demand than there is for stocks. In this case, subscriptions will be accepted on a "first come, first served" basis: we cannot guarantee that you will receive all or any of the shares you subscribe if you have done so after reaching the maximum goal of the campaign. For the number of shares you do not receive, you will of course get back your invested capital (but not the subscription fee, if it is applicable).

Occasionally, the terms of the campaign will change significantly between the time you make the investment and the time it is closed. In this case, a notice of change will be published and you have the right to cancel your investment within seven days of its publication. If the investment is not canceled within the seven-day period, the investment remains valid. The subscription fee is non-refundable.

Please note: Change notifications will be sent to the investors as an automated e-mail to the address that you have specified in your user profile. Make sure your settings are correct if you want to receive the change notifications!

I want to give away an investment - is that possible?

Yes, that is possible. On our platform, you have the option of marking your investment as a gift and forwarding it to someone else. Please ensure that this person receives information about your donated investment.

How are returns on my investment taxed?

Taxation depends on where you come from and whether you are a natural or a legal person (e.g. company, foundation, etc.). Check with your local tax authority and ask how they should deal with subscriptions for bonds or new shares, payment of interest or dividends from private companies, and profits from the sale of shares in private companies.

We do not report your subscriptions or winnings to your tax authorities. Investors are independent of Investor and are responsible for their own tax returns.

I made a successful investment - how are the stocks / bonds stored now?

There are three ways where you can store your bonds or stocks: the Investor Owners Portal, the booking system or the list of shareholders.

Invesdor Ownersportal. Some target companies outsource the maintenance of the shareholder or asset list to Invesdor and use our electronic share register service called Ownersportal. The service is used to track the number of shareholders in the companies, to update owner information and to send invitations to the general meeting. If you own shares in a company that uses Ownersportal, you can view ownership information in your user profile at Invesdor.com.

Electronic booking system.Electronic booking systems are securities accounts that are available through banks or some investment firms. Invesdor does not manage electronic booking systems. If the target company's shares are entered in the booking system, you will be asked for your securities account number when subscribing to the shares. After the offer has been successfully completed, your subscribed shares will be registered in your booking system.

List of shareholders. Companies are required by law to keep an up-to-date list of their shareholders. If a target company does not use Ownersportal or an electronic booking system, the ownership information is saved in this way. At the end of a successful offer, Invesdor provides the target company's updated list of shareholders, after which the company takes over the management of the list.

After successful completion of a campaign, you will always receive a certificate from Invesdor stating the number of shares you have subscribed to, the subscription date, the name of the target company and the name of the creditor. Please note that this certificate does not constitute evidence of ownership of the shares.

Total price and costs

The use of the Invesdor platform for information purposes is free of charge. You only incur costs if you invest in securities on the platform and conclude an investment brokerage agreement with Investor. In this case, Invesdor charges a subscription fee of 1% of the amount subscribed, but always at least 10 euros and a maximum of 500 euros per investment. When investing in securities, it is the responsibility of Invesdor to refrain from charging a subscription fee or to reduce it. In these cases, Invesdor will make this clear on the platform.

In addition, you are of course obliged to pay the amount subscribed (including premium, if applicable).

It is possible that additional costs or taxes (e.g. custody fees at your bank) arise that are not invoiced and paid by Invesdor. Any income or capital gains distributed on the securities are subject to taxation.

We recommend that you seek qualified tax advice. The consulting costs arising in this context are to be borne by you.

Complaints procedure

The satisfaction of our customers is particularly important to us. We therefore do everything in our power to investigate and resolve possible complaints quickly and reliably. We have established (these) principles for dealing with customer complaints. You can send complaints by email: [email protected], by post: Salomonkatu 17 A; 00100 Helsinki, Finland or by calling +358 20-735-2590. In particular, please describe the exact circumstances giving rise to your complaint. Complaints are immediately forwarded internally to our respective compliance officer. You will immediately receive a confirmation letter from us that your complaint has been received. The compliance officer usually examines the complaint within a maximum of 10 days and answers you. If the processing of the complaint takes a longer period of time, you may receive an interim notification. If the complaint is not resolved, the compliance officer will inform the management and provide you with understandable information about the reasons for this. The processing of complaints is free of charge for you. We evaluate the complaints received in order to identify systematic problems. We also regularly review our complaint management principles and adjust them if necessary.

Information on customer classification in accordance with Art. 45 of Delegated Regulation (EU) 2017/565

For reasons of the standardization of processes and in order to achieve a uniform level of protection, we treat all customers as small investors within the meaning of Art. 45 Para. 1 of the Delegated Regulation (EU) 2017/565. We do not offer a change in the classification as a professional customer or suitable counterparty within the meaning of Section 67 (6) WpHG.

Information on the right of withdrawal

For reasons of the standardization of processes and in order to achieve a uniform level of protection, we treat all customers as small investors within the meaning of Art. 45 Para. 1 of the Delegated Regulation (EU) 2017/565. We do not offer a change in the classification as a professional customer or suitable counterparty within the meaning of Section 67 (6) WpHG.

Right of withdrawal

You can revoke your contract declaration within 14 days without giving reasons by means of a clear declaration. The period begins after receipt of this instruction on a permanent data carrier, but not before the conclusion of the contract and also not before the fulfillment of our information obligations in accordance with Article 246b § 2 Paragraph 1 in conjunction with Article 246b § 1 Paragraph 1 EGBGB. To meet the cancellation deadline, the timely sending of the cancellation is sufficient if the declaration is made on a permanent data carrier (e.g. letter, fax, e-mail). The revocation must be sent to: Invesdor Oy; Salomonkatu 17 A; 00100 Helsinki; Finland or to email: [email protected]

Consequences of cancellation

In the event of an effective revocation, the mutually received services are to be returned. You are obliged to pay compensation for the service provided up to the revocation if you were informed of this legal consequence before submitting your contractual declaration and have expressly consented to us before the end of the revocation period begin the execution of the consideration. If there is an obligation to pay compensation, this can mean that you still have to meet the contractual payment obligations for the period up to the cancellation. Your right of withdrawal expires prematurely if the contract has been completely fulfilled by both parties at your express request before you have exercised your right of withdrawal. Obligations to reimburse payments must be fulfilled within 30 days. The period begins for you when you send your declaration of cancellation, for us with its receipt.

special instructions

If you withdraw from this contract, you are also no longer bound to a contract related to this contract if the related contract relates to a service that is provided by us or a third party on the basis of an agreement between us and the third party.

 

For companies

This is what you need to get started

General criteria

  • Registered company, legal business
  • Dedicated team
  • Marketing affinity
  • Growth potential
  • No unsolved credit problems
  • Online presence is up-to-date

Further criteria for crowd bonds:

  • More than 0.5 million euros in sales
  • Positive net income
How do i start

Go to home.invesdor.com and use the contact form to apply for a screening.

What fee can I expect?

Our fees depend on how well the company is prepared for funding. However, our price is always made up of three parts: a fixed up-front fee, a percentage success fee and a fixed closing fee if the financing round was successful.

Why should I choose crowd financing and not another type of financing?

Compared to traditional financing models, property and loan crowdfunding offers a quick, practical way to fund a business while gaining visibility. In short, the value of crowd funding lies in its unique combination of funding and marketing. Here are a few benefits that companies typically expect from crowd funding:

  • Quick access to capital
  • International visibility and brand building
  • Customer and shareholder engagement
  • Building a larger shareholder base in preparation for listing on the stock exchange
  • Validation of products and services
What are the main benefits of crowd funding with Invesdor?

This is what companies usually hope for through crowd financing with Investors:

Credibility. They increase their credibility to investors.

Speed. Negotiating with investors can be lengthy. With us you set the end date for your campaign. This gives your investors a clear deadline and enables you to complete your financing round more quickly.

Visibility. A public funding campaign is a promising way to gain visibility in your target markets. Financing with us combines fresh capital with marketing.

Problem-free. You don't have the time you spend on financing your core business. Our digital process, the documentation and handling and our personal service give you the freedom to concentrate on the essentials.

The strength of the crowd. Having a large group of committed shareholders is a powerful marketing resource. Shareholders can recommend your products or services, support your company with their expertise, or become even more active customers.

Investor Screening. As an FSA-licensed company, we identify all investors and business owners who invest or "fundraise" on our platform. So you always know who is investing in your company and you can rely on their reliability.

What do I need to be successful with crowdfunding?
  • Lead Investors
  • A good story
  • Comprehensible company and investment structure
  • A good network
  • Well planned marketing campaigns
How long does the crowdfunding campaign take from start to finish?

That depends on how much investment material you already have. Assuming you already have a good amount of marketing materials such as images and videos that can be used for the campaign, you should expect a duration of 3 months. These 3 months are divided as follows:

  • 1-2 weeks of preparation. This includes investor due diligence, campaign planning and uploading the materials to the platform.
  • 1-2 weeks for the "silent marketing" of the financing round to Invesdors main investors and the company's network.
  • 4-6 weeks for public marketing
  • 2-3 weeks to complete the round including money transfers and documentation
How is the process designed in detail?

Find out more at home.invesdor.com and use the contact form to apply for screening. This includes discussions with the Invesdor team and usually lasts a week.

Once your company has been confirmed as eligible for crowd funding, contracts will be signed and material preparation can begin. The material includes documents and business plans in text and visual form. Usually you prepare this yourself, but Invesdor also offers help as an additional service.

While the pitch is being prepared, Invesdor carries out its due diligence. If significant problems are found, Invesdor can halt the preparation and end the financing round. As soon as the pitch is ready, the due diligence is finished and a marketing plan is in place, the equity or bond offer can be opened in "hidden mode". Shares or bonds can already be subscribed to in hidden mode, but the pitch is not yet publicly available on Invesdor.com.

In hidden mode, the company sends the "hidden pitch" to its network and Investor sends it to its main investors. The purpose of hidden mode is to collect investments right from the start, usually 30% of the minimum target. As soon as this is achieved, the pitch can be published.

The public phase is mainly about the marketing activities of both the target company and Invesdor; it's a joint project. Social media, PR, email, phone calls, use whatever it takes to reach your investors. Invesdor supports you with its marketing expertise and strength.

As soon as a campaign has achieved its goal and the subscription phase has expired or the offer has been oversubscribed, Invesdor starts the closing process of the financing round. This usually takes one to two weeks.

Can I combine other financing channels with crowd financing?

Yes, we even recommend it. You can use the Invesdor platform to collect investments from different channels and bring them together in the same financing round.

Does Invesdor perform due diligence (DD)?

Yes, Invesdor operates its own Invesdor DD for all customers. The Invesdor-DD is a legal due diligence that examines the background of the company and its largest shareholders. The Invesdor-DD does not include a review of business opportunities, market analyzes or business-specific risks. If significant problems are found in the course of the DD, Invesdor can halt the preparation and end the financing round.

What is the Investor Forum?

The investor forum is a space for talks and discussions between companies and their potential and actual investors. An investor forum is automatically opened for each new issuer. It can be reached via the pitch page. During the financing round, the forum is open to all logged-in users. As soon as the round has been successfully closed, the forum is only accessible for you and your actual investors. You will be notified as soon as a new message is posted in the forum.