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There’s a new crowdfunding offer, you were sitting at the computer just before it was being opened for investing, and you were all set. When the clock turned 3, the crowdfunding offer was funded in less than a minute and even without you noticing, you had missed your chance to invest. Or when you relied on your Autoinvest but realised afterwards that, for some reason, your investment offer failed to go through. Can you relate?
Since 2018, Crwodestate has been occasionally using a new pre-booking solution, where the investors are guaranteed the have participation in a specific crowdfunding offer.
The difference between the standard and pre-booking investing
In most cases, Crowdestate publishes crowdfunding offers to its registered investors for immediate investing without any limits.
In case the crowdfunding offer opts to use the pre-booking feature, there will be a 24-hour pre-booking period before the crowdfunding offer will be available for limitless investment offers.
What’s different with pre-booking?
No more limits: You can invest as much as you want.
EUR 100 guarantee: All investors, having submitted their investment offer (for any amount) during the pre-booking period, shall be guaranteed to have a right to invest at least EUR 100.
- If the total amount of investment offers submitted during the pre-booking period falls short of the maximum funding goal of the crowdfunding offer, all investment limits shall be removed after the end of the pre-booking period, and the crowdfunding offer continues as an ordinary crowdfunding offer.
If the total amount of investment offers submitted during the pre-booking period exceeds the maximum funding goal of the crowdfunding offer, the pre-booking system shall redistribute the amounts of the investment offers proportionally in a way that guarantees all participating investors a chance to conclude the investment contract for at least EUR 100.
For example:
- The maximum funding goal of the crowdfunding offer is EUR 1 000.
- During the pre-booking period, 4 investors submit investment offers in the amounts of EUR 100, EUR 1000, EUR 10 000 and EUR 10 000.
- After the redistribution, the final investment contracts will be concluded in the amounts of EUR 100, EUR 100, EUR 400 and EUR 400. The remaining amounts will be returned to investors.
or
- During the pre-booking period, 5 investors submit investment offers in the amounts of EUR 100, EUR 200, EUR 1 000, EUR 5 000 and EUR 5 000.
- After the redistribution, the final investment contract will be concluded in the amounts of EUR 100, EUR 100, EUR 200, EUR 300 and EUR 300. The remaining amounts will be returned to investors.
The maximum number of investors is limited to “the maximum funding goal of the crowdfunding offer / 100”.
For example:
- The maximum funding goal of the crowdfunding offer is EUR 1 000. The maximum number of investors is limited to 10 (10 x 100 = 1 000).
- In this case, the pre-booking period will end immediately after the submission of the tenth investment offer, and the crowdfunding offer shall be deemed to be successful.
Autoinvest will submit the investment offer in the previously defined amount (e.g there are no restrictions). However, if the total amount of investment offers submitted during the pre-booking period exceeds the maximum funding target of the crowdfunding offer, the above-described redistribution principles shall be applied to the investment offers submitted by Autoinvests.
- If you have set up several Autoinvests, the investment offer shall be submitted by only one Autoinvest – the one with the largest investment amount.
NB! The pre-booking system does not apply to crowdfunding offers using reversed interest auctions.
To wrap it up:
- during the pre-booking period, an investor can submit one investment offer per account in the amount defined by the investor himself;
- after the end of the pre-boking period, the final investment amount is determined by the number of participating investors. If there is a need for investment redistribution, the final investment amount of each investor shall remain between EUR 100 and his original investment offer.
Should you have any questions, do not hesitate to write to us!
Happy investing!
