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Since 2011, Innovestment has provided investors with selected growth-oriented companies with innovative products or services. With your investment you support these companies in increasing their value and, if interested, follow their long-term development.
At innovestment.eu investors can get an overview of the investment opportunities. We attach great importance to clarity. You have the possibility to comfortably expand and manage your investment portfolio over time. All investment conditions are fixed in advance. The standardised contract model guarantees a balance of interests and the necessary legal security.
You can find more information about this under: How it works
Innovestment offers you transparent, efficient investment and capitalization processes. The Innovestment contract model, developed in cooperation with experienced legal experts and knowledgeable market participants, is compatible with other forms of financing for small and medium-sized enterprises (SMEs). Companies can take advantage of a bank loan or public funding, or arrange co-investments with other capital providers like Business Angels or VCs. The contract is intended to provide a reliable legal basis for this and also the basis for a trusting relationship between all parties involved.
You can find more information about this under: Finance
Innovestment is the bridge between companies and investors. Small and medium-sized companies can raise capital on innovestment.eu in an uncomplicated and transparent way. From this we develop broadly diversified investment projects with manageable terms and fixed interest rates for private and institutional investors. For companies that finance via innovestment, there are basic costs of €5,000 for the legal process as well as variable costs of 5-7 percent during the financing phase and 0.5 percent p.a. during the follow-up phase. You can read more about financing with Innovestment here.
For investors the use of innovestment.eu is free of charge. We also offer a fee-based subscription to Innovestment Premium.
If the company develops positively and an increase in value can be realised, investors also benefit from their growth in form of a return. However, an investment in companies is also associated with risks. In particular, if a business idea fails to establish itself on the market, there is a risk that investors may lose part or all of their investment.
The investment decision is to be made on your own responsibility and should be based on all documents provided, such as the investor information and the capital investment information sheet (Vermögensanlagen Informationsblatt – VIB) as well as your personal financial situation.
Further information on the risks can be found under Status Related Information.
On 10 July 2015 the so-called Small Investor Protection Act (Kleinanlegerschutzgesetz – KASG) came into force. This law regulates "crowd investing" for the first time. So-called "internet service platforms", such as Innovestment, operate within this legal framework, which was further adapted with the 2019 amendment of the KASG.
The most important aspects at a glance:
An investment is usually possible from €500 via innovestment.eu. However, there may be deviations. Please refer to the key data in the respective offer profile for the minimum investment amount.
The maximum investment amount for legal entities varies from project to project. In general, we limit the investment opportunity per company and investment project to a maximum of 10 percent of the total volume. In this way, we ensure that all investors, both private and legal entities, have equal opportunities to participate in a project. If legal entities wish to subscribe to larger tranches, we are happy to develop alternative instruments.
Since July 2019 you can invest up to €25,000 per project, depending on your freely available assets. Before that, the upper limit was €10,000. From an investment of €1,000, you must confirm that you either have freely disposable assets in the form of bank deposits and financial instruments of at least €100,000 or that the total amount of your investment does not exceed twice your average monthly net income.
In principle, the following criteria should be met for a financing application:
Our focus is mainly on the following areas:
For companies that finance via Innovestment, basic costs of €5,000 are incurred as well as variable costs of 5-7 percent during the financing phase and 0.5 percent p.a. during the follow-up phase. You can read more about financing with Innovestment here.
In July 2019, the upper limit for the offer of certain investments without a prospectus was raised from €2.5 million to €6 million per year. This does not include investments that have not been sold or fully redeemed. A prospectus must be prepared for financing beyond this.
Innovestment merely acts as an intermediary between the investors and the companies to be financed. As all contracts are concluded directly between these two parties, the closing of Innovestment would not affect the contractual relationship. The invested capital would therefore not be at risk.
As part of the implementation of the Small Investors Protection Act (Kleinanlegerschutzgesetz – KASG) 2015, subordinated loans were included in the scope of application of the German Asset Investment Act (Vermögensanlagengesetz – VermAnlG) and are now regulated as investments. However, the public offer of subordinated loans in the context of swarm financing (crowdinvesting) in a maximum volume of €6 million is exempt from the obligation to publish an investment prospectus under certain conditions. These conditions include, among others, that the investment is only distributed via a so-called "Internet service platform" such as innovestment.eu by way of investment brokerage.
The content and scope of the rights of the investors is essentially determined by the subordinated loan agreement applicable in each case. The subordinated loans are so-called creditor rights that do not grant any corporate rights, in particular no participation, involvement or voting rights in the shareholders' meeting of the company. However, the subordinated loan agreement grants the investors certain information rights, e.g. with regard to the provision of annual reports.
Investors have no right to issue instructions to the management of the company.
The minimum duration varies from project to project. Proper notice of termination by investors is possible at the earliest at the end of the minimum term with a notice period of six months. After expiry of the minimum term, termination at the end of a calendar year is also possible with a notice period of six months. The subordinated loans can be terminated via the Innovestment investment account, or you can send us an email to: [email protected]
Since subordinated loans are not direct equity investments but loans, no valuation of the company is required here. However, we subject every company to a plausibility check.
Subsequent financing at the company is also conceivable in this way, in that the company again issues an investment asset for the purpose of raising capital. In this case, you as an investor basically have the opportunity to invest again in the offered investments and thus in the respective company.
The insolvency of a company can lead to the partial or complete loss of the invested capital. If necessary, investors may try to claim the losses for tax purposes. You can find out more about this under "tax matters".
On innovestment.eu there are sensitive company data, which require responsible handling. Investors can therefore only view a comprehensive company profile after opening an investment account within the registration process at innovestment.eu.
Pursuant to Section 16 (2) of the Financial Investment Brokerage Ordinance (Finanzanlagenvermittlungsordnung – FinVermV), we are legally obliged to conduct a so-called investor exploration. We must obtain your knowledge and experience with regard to certain financial investments in order to be able to assess the appropriateness of the financial investment for the investors.
The technology of our website meets the latest requirements for security standards. All data between browser and server are transmitted in both directions in encrypted form – among other things, this can be recognised by the small lock and the addition https://, which are displayed in your browser line. The data is stored on a server in Germany.
No, all investors, both individuals and company representatives, must register with clear names and confirm their identity by providing the number of their identity card or passport.
If you no longer need your investment account with Innovestment, please send us an email with the request to delete it to [email protected] In this way we can ensure that you have all the information about your investments, in case you have made some.
Important note on the following tax issues
The following tax Q&A is intended as general guidance for Innovestment investors. It is expressly not individual tax advice and cannot replace it. Please contact your tax advisor for further questions.
The subordinated loan agreements concluded via Innovestment can be held as both private and business assets. The following comments only concern contracts held as private assets by natural persons in Germany. If you have any questions regarding contracts held as business assets or in your country, please consult your tax advisor.
The income is income from capital assets within the meaning of Section 20 of the German Income Tax Act (Einkommenssteuergesetz – EStG) and is generally subject to the so-called flat rate withholding tax plus solidarity surcharge (Solidaritätszuschlag) and church tax, if applicable. Depending on their personal circumstances, investors must pay these taxes to the relevant tax office.
This final withholding tax is supplemented by various declaration obligations and options. For example, investors have the option of taxing all investment income at the individual tax rate (application for the so-called tax concession; German:"Günstigerprüfung" ).
In order to ensure the correct deduction of church tax, an electronic rule check is made with the Federal Central Tax Office (Kirchensteuerabzugsverfahren – KiStAM) for each investor by 31 August each year at the latest. In addition, the query is applied for promptly when an investor joins the company. The regular search is carried out regardless of whether the investor belongs to a religious community. You will be informed of the query in good time (at least two months) in advance. The company will only refrain from deducting church tax if there is a so-called blocking notice. In such cases, church tax is levied directly on the investor.
In general, nothing has to be enclosed with the flat rate withholding tax; when applying for the so-called "Günstigerprüfung" (tax concession), among other things, the profit or loss statements together with the annex "Kapitalertragssteuer" (KAP) have to be enclosed with the tax return.
Should there be a loss of your investment, the latest case law provides for the possibility to claim these losses for tax purposes. The highest German tax court, the Bundesfinanzhof (BFH) in Munich, ruled in October 2017 (reference number: VIII R 13/15) that losses from private loans can be offset against other investment income. However, the BFH had left open in its ruling whether a settlement or waiver of claims between a private investor and the issuer should also be recognised accordingly for tax purposes. It is conceivable that investors would suffer only a partial loss of their investment.
However, a recent ruling of the Münster Finance Court of March 2018 (file number: 2 K 3127/15 E) strengthens investors' backing in this case. The court confirmed that the waiver of the claim would also lead to a final loss of the capital claim with an associated loss of the taxpayer's economic capacity. It was therefore necessary to take such circumstances into account for tax purposes. However, an appeal against the judgment of the Münster Finance Court was lodged with the Federal Finance Court (file number: IX R 9/18).
In any case, you should clarify the procedure for claiming losses with your tax advisor. Investors who have suffered a loss should not automatically assume that the tax authorities are aware of the BFH's ruling or share this legal opinion. It may well be that the tax authorities have a different tax perspective. You can find further information on the subject of "Tax Consideration of Losses in Crowdfunding" here (in German).
If interest income from the loan accrues after the investors have submitted their tax return, this is not problematic, as the flat rate withholding tax is paid by the company to the tax office and the tax liability of the investors is thus automatically settled.
Investors should always keep their addresses in the Innovestment investment account up to date for the purpose of sending out profit and loss notifications, among other things.
Every country has its own tax laws. Please consult your tax consultant.
No, neither Innovestment as an internet service platform nor the project providers accept exemption orders ("Freistellungsauftrag").
This tax Q&A is intended as a general guide for Innovestment investors. It expressly does not constitute individual tax advice by Innovestment and cannot replace such advice. Please consult your tax advisor for further questions.