Crowdfunding Platform - Spreds review

Basic information

For Investors

Spreds Service Description for Investors and Project Owners

• Investors: Spreds allows private individuals and companies to invest in a variety of sectors, including startups, SMEs, green energy, real estate, and health & science. Investors can start with a minimum investment of €100. The platform provides detailed information on each investment opportunity, ensuring transparency and aiding informed decision-making. Co-investment with professionals such as venture capitalists and business angels is also facilitated.
• Project Owners: Entrepreneurs and SMEs can use Spreds to raise funds through equity or debt. The platform supports campaigns by offering visibility to a community of 45,000 members and professional services to streamline the fundraising process. Spreds' ePooling service helps reduce the cost of managing investors by consolidating investments into a single legal entity, making it easier and more efficient for project owners to handle multiple stakeholders​.

Investment Risks when investing on Spreds

Investing through Spreds involves risks typical of crowdfunding, such as:

• Project Default Risk: The possibility that the business may fail, leading to a total loss of the investment.
• Liquidity Risk: Investments in startups and SMEs are generally not liquid, meaning it can be difficult to sell the investment quickly if needed.
• Regulatory Risk: Changes in regulations could affect the platform’s operations or the performance of the investments​

Types of Investments Offered on Spreds

Spreds offers two main types of investments:

• Equity Investments: Investors receive shares in the company, participating in its potential growth and profits.
• Debt Investments: Investors lend money to the business, receiving interest payments and the return of principal over time​.

Spreds Platform Fees

• Equity Investments: Spreds charges a 5% subscription fee on each investment. If a project owner opts to let their network invest at a preferential rate, the fee is 3%. Investments made through Spreds' Tracers service are subject to a 4% subscription fee, with an initial cost of €100 to subscribe to a Tracer​ (CrowdSpace)​​ (Spreds)​.
• Debt Investments: Investing in loans to SMEs is free of charge for investors. The interest rate displayed on the platform is net of Spreds’ fees but gross of withholding tax​