📍Crowdfunding or Restricted Round?

Here you will learn what is a Crowdfunding and what is a Restriced Round type of investment. This page is suitable for both founders and investors.

🟢 Crowdfunding Round

A Crowdfunding Round is an open investment opportunity where a startup allows multiple investors—often including small or non-professional investors—to participate in the funding round with relatively low minimum investment amounts. These rounds are typically public or semi-public and are designed to democratize access to startup investing.

• Ideal for generating visibility, building a community of supporters, and raising capital quickly from a large number of people.

• Investors may not receive voting rights or board influence, depending on the instrument used.

• Usually subject to regulatory limits on how much can be raised or invested per person (depending on your jurisdiction).

Example: A startup raises €250,000 from 100 angel investors, each contributing between €500 and €5,000.

🔒Restricted Round

A Restricted Round is a private investment round with stricter access, typically limited to a small number of selected investors. These rounds are often used when the startup wants more control over who invests—such as strategic angels, institutional VCs, or trusted individuals.

• May include special terms, larger ticket sizes, and investor rights (such as voting or information rights).

• Not open to the general public.

• Typically used in Seed, Series A, or bridge rounds where alignment and investor quality matter more than volume.

Example: A startup raises €500,000 from 5 investors, each contributing €100,000 and receiving preferred shares with specific rights.