How can I invest on companies through Fundwise platform?
You can invest by buying shares in the target company. Investors transfer the funds to a special escrow account during the campaign. The target company cannot use funds before the campaign has ended successfully. In case of successful campaign the funds are transferred from escrow account to the target company account. Investors become shareholders. When the campaign fails, funds are transferred back to the investors.

Who can invest through crowdfunding?
When you are at least 18 years old, you can invest as an individual or through your company. In addition you must have a security account in some Estonian commercial bank.

Is it possible for foreign investors to invest through Fundwise?
Yes, foreign residents can invest through Fundwise. 

If a campaign organizer does not use Nasdaq Central Securities Depository, foreign residents do not need to open securities accounts in Estonia. 

If a campaign organizer uses Nasdaq Central Securities Depository, investors need securities accounts, which are registered in Estonia. If you do not have a securities account, you can open it at a commercial bank in estonia or use a correspondent account at your home bank. As another option, it is possible to invest into a convertible loan instrument. It is an alternative to an equity investment. Read more about different instruments.

Is it possible to invest as a company?
Yes. Fundwise has user accounts for private persons but when starting your investment you can fix either you invest as a private person or as a company.  The latter requires the authorization, the legal right to represent your company and make transactions and investment to other legal enterprises.

What is securities account and how to get it?
Securities account is similar to your bank account, where you deposit your money. The difference is that it is used to make security transactions and deposit securities. The account's number is in form of 99XXXXXXXXX.

To open securities account, decide whether you want to invest as a private person or as a legal entity and contact your bank or any other commercial bank in Estonia. In most banks you can open a securities account for a private person via internet service.

You can check whether you or your legal entity already has a securities account via E-register of ECSD. After opening the account it can take a couple of days for it to be published also in the central register.

What is the minimum amount I can start investing?
The minimum investment usually is below 200-300 euro, therefore crowdfunding is an easy and low-risk investment to start or diversify your investments.

How can I alienate shares of an Estonian enterprise?
In case the shares are  registered in ECSD, there are no obligatory transaction form to alienate the shares.  This action can be done on the Internet bank or in the bank-office as a transaction to a security account. The transaction can be done as payment for shares, where the shares and payment move simultaneously between the buyer and the seller or it can be done without payment, which is done upon other terms or time. The bank fee is charged according to the bank’s pricelist, payable for  security account transactions.

If shares are not registered in ECSD, the nominal value of the company's share capital is at least 10 000 euros and the company has refused from notarized transactions, the transaction can be made in a form suitable for both parties.

If shares are not registered in ECSD, but the nominal value of the company's share capital is less than 10 000 euros, the transaction should be notarized.

What will be my costs related to investment?
The investor does not bear any additional costs while investing. Fundwise fees and security fees are paid by the company who is raising funds. The only cost for the investor is related to security account costs.

What are the risks?
Equity crowdfunding carries certain risks, which you can make yourself aware of at our risk warning. We recommend that you consider every investment decision carefully and diversify your investments.

What tax benefits and obligations are to be taken into consideration when investing through crowdfunding?
Unfortunately, there are no tax benefits for crowdfunding investors set by Estonian legislation, neither when entering or exiting the investment. At the same time, while investing as a company and wishing to exit the investment,  you do not have income/profit tax obligations on sale, before the profits are shared between investors.  Investing as a private person, you must pay taxes on income/profit. Learn more how to invest as a private person or as a company

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