FunderNation AI Overview on 09/2025

Overview – FunderNation Crowdinvesting Platform 🚀

FunderNation (founded 2014 in Bensheim, Germany) is a crowdinvesting platform for retail investors to fund innovative startups and SMEs (with a minimum investment of €100). It is led by experienced VC professionals (e.g. CEO Uli W. Fricke) and focuses on sectors like IT, sustainability, aerospace and healthcare. The model uses profit-participating subordinated loans (qualifizierte Nachrangdarlehen) to finance companies: investors receive a mix of fixed interest and success bonuses. Key advantages include professional screening, risk/return categories (High&High vs Low&Solid) and a large investor base (17,000+ people). Main risks are high: startups may fail, loans are illiquid (no official secondary market), and total loss is possible. All investments are unsecured (no deposit insurance), so due diligence and diversification are crucial.

FunderNation Product Offering – Crowdlending & Returns 💼

FunderNation offers crowdinvesting via profit-sharing loans. Each project issues a partiarisches Nachrangdarlehen (subordinated loan) to investors. Two profiles are available: High & High (young startups, high risk, potential returns up to ~50% p.a.) and Low & Solid (established firms, lower risk, ~4–12% p.a.). Campaigns run typically 90–180 days; if the funding threshold is unmet, funds are returned to investors. Loan terms are long (typically 24–60 months). Interest accrues (fixed and/or success-related bonuses) and is paid either periodically (High&High) or mainly at the end (Low&Solid). Investors must invest in euros (no FX), and only via bank transfer. Major risks include borrower default (investors stand behind all other creditors), project failure (possible 100% loss), and no guaranteed exit (loans are non-cancellable; sale only to a willing buyer). All legal details are governed by German crowdfunding law (VermAnlG); each issue provides a mandated VIB (investor information sheet) for transparency.

FunderNation Company Background – Team & Regulation 👥

FunderNation’s management team includes founder/CEO Uli W. Fricke and other experienced VC professionals. The platform is run by FunderNation GmbH (registered in Bensheim, HRB 93283). It was founded by Uli Fricke and colleagues (Triangle VC) as Germany’s first crowdlending portal. Key executives include Uli Fricke (CEO), Alexander von Preysing (Head of Investment) and Dr. Bernd Geiger (Tech Advisor). There are no outside corporate subsidiaries; FunderNation is privately held by its founders/associated VC fund. The platform operates under German financial laws for small investors: it does not hold a banking license (no BaFin license needed) but complies with the Small Investor Protection Act (publishing a VIB for each issue). It is a member of the German Crowdfunding Association, and is supervised by local regulators (Kreis IHK and BaFin oversight of borrower disclosures). No regulatory sanctions against FunderNation are public.

FunderNation Key Metrics & Results (2023–2025) 📊

According to FunderNation’s own reports, by mid-2025 over €70 million had been raised through the platform by ~17,000 investors. Top projects include EnerKíte (a wind-energy startup) which alone raised ~€6.5M from ~2,000 investors. Other large campaigns (2022–2025) have raised €1–3M each (e.g. OndoSense, paXos Solar, Veekim, Revo Foods). In total, dozens of rounds (≈40+ funded projects) have closed. Defaults have occurred: for example the Scoobe3D round (141 investors, €221k funding) failed (Ausfall). Official loss rates are not published, but anecdotal data suggest several projects have underperformed. Platform-supplied stats show historic average returns around 20.23% p.a. (as of Apr 2024), reflecting the mix of high-yield deals and some write-offs. There are no details on overdue loans; the site warns that delayed payments do occur and must be managed by issuer actions. (Data current as of 2024–2025, latest available reports.)

FunderNation Risk Approach & Monitoring 🔍

FunderNation applies venture-style screening to all applicants. Prospective issuers undergo due diligence by the in-house VC team before being invited to raise funds. All projects are labeled with a risk profile (High&High vs Low&Solid) to guide investor choice. Sector filters ensure fits with focus areas (e.g. green tech, medtech). During funding, FunderNation uses a “crowd-intelligence” tool (FunderWorld) to collect feedback on the business plan and test market interest. Selected projects prepare a VIB and detailed campaign page (business plan, video, financials) for full transparency. Once live, issuers are contractually obliged to send periodic reports (e.g. quarterly or annual) and notify investors of any delays. If payments are missed or insolvency looms, FunderNation may coordinate communications, but ultimate risk stays with investors. There is no independent rating system – investors rely on the disclosed information, risk category and platform guidance. The platform explicitly warns that each project can fail and advises diversification.

FunderNation Platform Features & Tools 🌐

The FunderNation website is modern and user-friendly. It is available in German and English (Euro only) and provides an investor dashboard showing active investments and reports. All contributions are made by SEPA bank transfer; there are no e-wallets or crypto. The platform does not offer an automated investment (auto-invest) feature or a built-in secondary market for loans. Investors may manually resell loans, but only if another buyer is found externally. Campaign pages include rich data: pitch videos, executive bios, financial projections, and live funding progress. There are filtering tools to search by theme (e.g. “Nachhaltigkeit”, “IT & Medien”) or risk profile. FunderNation tracks portfolio diversification (showing how many projects investors participate in) – e.g. the site cites “63% multi-investments” to encourage spreading capital across deals. No insurance or guarantees are offered. Overall, functionality is basic compared to some fintech platforms, but it covers portfolio tracking, campaign updates, and two languages as standard.

FunderNation Platform Pricing – Fees 💰

FunderNation is free for investors: there are no entry, performance or exit fees charged to the crowdfunding participants. The platform is funded by issuers: companies pay an 8% success fee on the funds raised, plus 0.5% p.a. of the capital (for ongoing investor communication). There are no hidden charges for investors. All fees are transparently published (for example on independent platform summaries). In practice, the 8% + 0.5% model is on the low end for equity crowdfund platforms. There are no subscription or management fees for users.

Negative Publicity about FunderNation ⚠️

There is limited media criticism of FunderNation, but investor reviews highlight some concerns. On review sites, the platform has a middling score with mixed feedback. Some investors praise the professional interface, while others report frustrations. Notably, one review (Sept 2025) complained of a project default (“Ausfall”) and lack of updates, claiming a “50% default rate” and warning others. Indeed, at least one project (Scoobe3D, €221k funding) ended in default. These anecdotal cases reflect the inherent risk: startups often fail. No regulatory sanctions or enforcement actions against FunderNation are on record. Apart from customer forums and reviews, major financial media have not flagged specific controversies. In summary, the main “negative” signals are investor complaints about occasional defaults and illiquidity – standard for high-risk crowdfunding.

FunderNation Success Stories 🌟

FunderNation has several notable case studies. Most prominent is EnerKíte (a flying wind turbine startup): across four rounds (2014–2023) EnerKîte raised ~€6.5 million from ~2,000 FunderNation investors. This funding enabled EnerKíte to develop prototypes and achieve its first commercial sale. The partnership with EnerKîte exemplifies FunderNation’s impact on deep-tech ventures. In August 2025 the platform celebrated that its community (17,000 investors) had funded over €70M in total, underscoring growth since launch. Other high-profile campaigns (2022–2023) include OndoSense (deeptech sensors), Revo Foods (3D food printing) and Local Life 2.0 (food platform), each raising >€1M. The platform has also won industry recognition as Germany’s first VC-backed crowdfunding site. These milestones (e.g. first project in 2014, cumulative €70M by 2025) reflect steady progress in building a retail investor ecosystem.

Is FunderNation safe and regulated?

It is a German platform complying with local crowdfunding law (VermAnlG). It is not a bank and offers no deposit protection. However, as a registered service provider it requires each issuer to publish a legally-mandated prospectus (VIB). The team is experienced (VC background) which may inspire confidence, but all investments are inherently risky.

What returns can I expect?

Depends on the project profile. High&High deals target very high returns (theoretically up to ~50% p.a.), while Low&Solid projects aim for ~4–12% fixed interest. FunderNation’s own stats suggest a historical average yield around 20% p.a., but this varies widely by project. Importantly, there is no guaranteed return – investors are entitled only to contract-defined interest/bonuses.

What are the main risks?

FunderNation warns investors that loss of entire capital is possible. The loan is deeply subordinated, meaning in insolvency your claims rank behind all regular creditors. Key risks: the company may fail or delay payments (illiquidity); information might be limited; and there are no external guarantees or buyback. Always assume a high chance of loss with any individual crowdfund deal.