Crowdfunding in general is an online form of alternative (non-banking) finance. Crowd investing refers to the Campaigns of private limited companies aimed at raising share capital through specialized online platforms. The conditions of crowdfunding comply with the regulations of private placement within the European Union, in accordance with the Civil Code of Hungary.
The general information regarding the Campaign may be accessed by anyone, but the complete Terms of the investment offer (the Term Sheet) may only be accessed by identified Users with an Investor Profile.
The Campaign is successful if the advance payments arriving on the custodian account and the indicated investment amount indicate the completion of the Minimum Funding Target. The company continues its operation as a private limited company; while the new shareholders – in accordance with the conditions detailed in the Term sheet – usually delegate their voting rights either to the Lead investor or to the person in the corporate governance of the Campaign Initiator company.
(The other domains of Crowd Funding are introduced on our FAQ page.)