Faqs. Investors

Who can invest?
Any natural or legal person resident in the European Union who is of legal age and who has a current account with a European bank. If the natural or legal person is from outside the European Union, they must request or have a valid NIE. You can check the requirements for obtaining an NIE here.
What if you are a foreigner and want to invest in our projects?
The first thing you will need is to have a Foreigner's Identification Number (NIE) issued by the Government of Spain, and follow a simple procedure to justify your investment. All information is at this link.
Are activities regulated for investors?
The sector is regulated by REGULATION (EU) 2020/1503 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of October 7, 2020, on European providers of participatory finance services for businesses and which amends Law 5/2015 on the Promotion of Business Financing of April 27, 2015, being one of the wills of the same to protect the investor. As established in Chapter IV (Investor Protection), two types of investors of the Participatory Financing Platforms (PFP) are distinguished: experienced and inexperienced investors. Thus, the regulation establishes the need for investors to be aware of the risks they face when investing.
What types of investors are there?

There are two types of investors: experienced investors and investors.

Experienced Investors:

An Individuals must meet two of the following requirements to be treated as an Experienced Investor:

  • To have a gross income above €60,000 or to have a portfolio of financial instruments above €100,000.
  • To hold a professional position within the financial sector.
  • To perform more than ten transactions in financial markets in the last 12 months.

Legal Entities must meet at least one of the following requirements to be treated as an Experienced Investor:

  • To have equity of at least 100,000 euros.
  • To have a net turnover of at least 2,000,000 euros.
  • To have a balance sheet of at least 1,000,000 euros.

Investors:

Any other investors who do not meet the above conditions are considered investors.

How much does it cost to invest through Fellow Funders?
Investing in Companies through Fellow Funders is totally free for investors registered on our website. Investors also have access to all the information of the projects or the investment room.
If you have not yet registered, do so here.
Why use Fellow Funders? What does Fellow Funders give me?
By means of a ten-point list, this is a summary of what we offer:
  • The power of the network is no longer just to communicate, shop, find work, shop, etc., you can also now invest.
  • Platform Authorised by the CNMV.
  • Invest in projects that have passed comprehensive risk filters set by the best professionals.
  • Access projects with potential at any of the phases.
  • Choose the sectors in which you want to invest.
  • Learn of all the risks of the companies in which you invest.
  • Build a diversified investment portfolio.
  • Your data will always be protected with stringent security standards.
  • Actively contribute to building a sustainable SME fabric in Spain.
  • Track your investments from home, or wherever.
Do I have the right to tax incentives?
Yes, you can get significant tax deductions and start profiting from your investments in your next tax return, just like your pension funds. Investing in emerging companies is the perfect alternative to other forms of long-term investment.
Article 68.1 of the Law on Personal Income Tax regulates a deduction on the whole state payment equal to 20% of the amounts invested during the year. This 20% related to the State is complementary to the corresponding deduction that each Autonomous Community can allow.
The state deduction is limited to €10,000 per year, per taxpayer, as is the case with contributions to pension funds. However, it is possible to additionally apply the regional deduction, thus increasing the total deductible limit between an additional €600 and €6,000 depending on the Autonomous Community. As an example, in 2015 Catalonia applied a deduction of 30%. You can find detailed information on both state and regional tax incentives on each projects. Then you will know if is applicable or not.
What risks do I have?
Fellow Funders ensures your security and tries to ensure you assume the lowest possible risks, but remember that investing in start-ups and Companies involves certain risks, including lack of liquidity, no dividends possible loss of investment or dilution of shareholdings/shares. Therefore, it is highly recommended that, before you start investing through Equity Crowdfunding, you make yourself aware of these risks so that you make conscious and thoughtful investment decisions.
You can find more detail about the risks inherent to this activity by clicking on the "Basic Information for Customers" link that you will find on our page.
Why are payments made immediately when it is not yet known if the project will succeed?
We believe that financing a company requires certain guarantees that the committed funds really exist, so Fellow Funders requests full integrity when it comes to committing to invest. To ensure maximum peace of mind for investors we offer an escrow account* where your money will remain secure until the end of the campaign, whether successful or not. If a project does not succeed, the investor has their money returned to their account automatically without any cost or commission.
*An escrow account or custodian account is an account in the name of the investor in an independent financial institution where their funds will remain until the end of the Crowdfunding campaign. The funds are guaranteed and no one can access them as the crowdfunding campaign is the sole purpose.
Who are the promoters?
It is another name for the Entrepreneurs: they are any natural or legal person resident in Spain that needs financing for their project/company.
Have the projects that I see on the website passed any controls?
The projects that we upload to the platform are those that have passed various filters: economic, feasibility, legality, management, etc. We have valuation models designed and based on many years’ experience and which are fully tested.
All the projects we assess have a score between 0 and 100. If a project has a score below 65, we don’t put it on the platform. This helps us to offer projects with a greater chance of success. Of course, no project is without risk.
In addition to scoring, investors can acquire the Objective Assessment Report on the company, which will provide detailed information on all aspects that have been assessed, along with our objective comments. This means you can make investment decisions based on a much more in-depth analysis.
What is the Scoring that Fellow Funders gives?
To better understand the assessment of companies carried out by Fellow Funders, we have established Scoring; a score from 0 to 100. Only companies that score greater than 65 are published on our platform. We consider that companies with a score below this have risks or uncertainties that are too high for most investors.
How are the projects assessed?
All projects we receive are assessed using a rigorous methodology that helps us understand and analyse the risk environments in which each company/project operates. This methodology addresses several aspects of the company: founding team, product/service, legality, market, barriers, regulations, strategy, etc. This allows us to build different scenarios, and we obtain then score that will allow us to know if the risks are excessive or acceptable.
Once the project has been analysed and assessed and if the score exceeds the threshold to be published, we carry out a Valuation on the company. We obtain a price range that we consider the company to have, ensuring that the offer is fair to investors.
We cannot ensure that the companies available to invest in are risk-free (remember that they are newly created or expanding companies) with this process, but we can assure you that they have faced a thorough assessment process. This process limits but does not eliminate all the usual risks of investing in an SME or STARTUP, but thanks to this we have the necessary information to exclude those that do not meet the minimum feasibility criteria to become a sustainable and profitable business.
If I have doubts, can I contact the companies?
You should never have doubts, especially when investing in an SME/ STARTUP. hat's why the Fellow Funders team reminds you that every investor has access to the Investment Room, where they can talk with other investors and with the promoter team itself. If you have doubts about the operation of the campaign, you can always contact us via your private area, and your advisor will contact you as soon as possible.
What is the Investment Room?
The Investment Room is a space reserved for investors within their private area at Fellow Funders where they can ask questions of the promoter team in addition to being able to contrast opinions with other investors on the same project.
Transparency is very important for Fellow Funders, so we not only make all the information available for each project, but also tools such as the investment room that allow you to ask anything you consider appropriate, and see the promoter live when the campaign starts and just before finishing (at least one press conference). You will also have the option of acquiring an Objective Assessment Report. This means you will have all the necessary tools available to make an objective investment.
What is the Objective Assessment Report?
A document detailing all the points that the Fellow Funders analyst team has assessed for a company/project. It assesses and details all relevant aspects of the company such as the entrepreneurial team, viability of the product/service, barriers to entry, regulation, patents, etc
The Objective Assessment Report gives you an objective and impartial opinion of the project in addition to an in-depth understanding of all the risks involved.
A report will always be available for each project. It costs 99 euros per report. If you are a Premium investor, you’ll have unlimited and free access to all reports during the year.
Are there limits to the investment?
If you are an accredited investor, there are no limits to your investment. On the other hand, if you are a non-accredited investor you cannot invest more than 3,000 euros per project or more than 10,000 euros per year per platform.
What are the processes to be able to invest?
The first is to sign up. If you have not yet done so, you can do at this link. Once you are an investor, you can access the information on all the projects and start building your portfolio as soon as possible.
How do I make the investment?
Fellow Funders offers two ways to make the investment: bank transfer or credit card.
Remember that for your security, Fellow Funders uses escrow accounts. Your money will be 100% secure and guaranteed throughout the entire investment process.
What type of projects can I invest in?
You can invest in any of the projects that you like. But remember, the more diversified your investments, the lower your risks, the greater your chances of success, and, in the long term, your returns will also be higher. Like your pension funds, look for medium-term goals and look for those projects that you like, but that are also in sectors you know. If they have tax incentives then ever better.
What happens if a project doesn’t reach the financing it wanted?
If a project doesn’t reach its financing goal, don’t worry; your money will be immediately returned to your account for free.
What happens if a company reaches its objective?
The company closes its financing round when it achieves at least 90% of its objective, with the possibility of achieving up to 125% (overfunding) of its initial objective.
Once the objective has been reached, the legal documentation is sent to investors (Articles of Association and Partners Agreement). 14 days after receiving the documents (review period), the Company goes to the Notary to perform the capital increase once the disbursement of the funds in the Company's escrow account is justified. Once this is recorded in the Companies Register we will send your Investment Certificate to you by email.
What is a diversified portfolio?
It is an investment portfolio comprised of several securities of different types, industries, geographies, sectors, etc. Diversified portfolios reduce the risk we assume.
Is my information secure with Fellow Funders?
Your data as an investor will always be processed under LOPD (Law on Personal Data) regulations.
If this were not enough, Fellow Funders hosts its website on a secure SSL environment server that provides additional security measures and we continue implementing improvements to ensure your security.
Is my money secure with Fellow Funders?
During the investment process your money will be 100% secure as it is held in an ESCROW account that nobody can make use of unless the desired financing is reached. If the goal is not met, your money will be automatically returned to your account at no cost.lverá a tu cuenta de forma automática a coste cero.
Is the investment guaranteed?
Fellow Funders does not guarantee the success of an investment in a project. If a project ultimately fails, or the investor does not obtain the expected return on their investment, Fellow Funders cannot be held liable.
Most companies financed through Fellow Funders are high-risk investments and not suitable for investors looking for a secure return. The risk assumed is based on the expected return.
It is advisable to create a diversified investment portfolio to reduce risks, and it is very important to select the projects you are going to invest in well.
What return can I expect from the projects?
Each project offers a different return based on the age of the company, its situation and the sector in which it operates, among many other factors.
The return and value of your investment will depend on the success of the company in which you provide capital. If it does not go well, you may not get the profit you expected and even, in a worst case scenario, lose all or part of your money. You need to bear in mind that your investment is not guaranteed.
How do I earn from my investment?
There are two main ways to earn from your investment: divestment and dividends.
Investment in start-ups or emerging companies is characterised by the offering of potential future earnings based on a total or partial purchase of the company (this process of selling the acquired shareholdings is known as Divestment or “Exit”).
Another potential return on investment is from dividends, or a percentage of the profits that the company decides to distribute among its partners at the end of each year. The dividends are usually from mature companies in which the space to grow is more limited and they earn a lot of money, and not so much in young companies that seek to reinvest all the profits generated so as to grow the business and generate more future value for its shareholders
Fellow Funders works with both types of company, those with well-known and established business models, but also with those companies that are younger or even start-ups. Each model or company type entails certain risks and it is the investor who must assess whether or not to accept the risks of each operation. Remember that building diversified portfolios is the best way to reduce your risk exposure and thereby reduce the volatility of your portfolio.
Can I cancel my investment?
Yes. You can cancel your investment as long as the process to find financing for the company has not ended. Fellow Funders knows how important the investment decision is and therefore we want to support you at all times and, if at any time you are not sure of your investment, we believe it is better not to invest. Also, if you need to cancel, you can do so for free.
What are the most common clauses in a Partners Agreement?
The Partners Agreement is a Contract or Statutory Agreement (in addition to the company's Articles of Association) that is entered into between the partners, with the purpose of regulating certain aspects of their future partnership. The most common clauses, and to which more attention is usually paid, are:
  • Tag Along: Within a partnership agreement,this clause gives minority members the right to sell their shareholdings or shares when the majority shareholder sells theirs. If the majority shareholder receives an offer to sell their stake, the minority shareholders will have the possibility of "tagging along" under the same conditions.
  • Drag Along: In this case, if a partner (usually a majority shareholder) receives an offer to purchase a % of shareholdings in the company greater than that which said partner holds (usually for 100% of the shares), said partner may drag the other partners along so that everyone sells their shareholdings or shares to the interested buyer.
  • Distribution of annual profits (Dividends): f the company makes an annual profit, investors receive a % of this profit (dividends).
I am a shareholder, now what?
Have you already made your first investment? Now you can track your investments from your Fellow Funders private area. Here we will notify you of anything related to your investment.
Remember that the best way to make your investments profitable is to have a diversified investments portfolio. Diversification is the best way to reduce risks and volatility in your investment portfolio.
What is a reward?
A reward is a gift in the form of goods or services, normally related to the business, offered by the company to investors as an incentive for having invested in a project.
Once the investment is finished, can I track my investment from here?
Remember that Fellow Funders accompanies you throughout the investment process. Tracking the company in which you have invested is also part of the process. Being aware of the results, shareholders meeting, possible capital increases, etc. These are some of the aspects that Fellow Funders will let you know about. Even if you don't connect to the platform, Fellow Funders will send you an email or message and let you know if there are changes to your investments.
For even the slightest doubt you have, Fellow Funders is here to help you
Investing requires thought and clarity about the risks you take on at all times, and the reason/objective for running the campaign. Fellow Funders is aware of this process and we want to support you at all times. That is why we have an email address and a telephone number where you can contact us to clarify any questions that may arise
inversores@fellowfunders.es. TelTelephone: 91 026 0848.