CrowdedHero Review
Quick Overview
Platform Age
Operational Launch Year
Investments Facilitated
Total Volume
EU Regulation
First in Latvia
Minimum Investment
Per Project
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Investment Focus
Equity investments in established businesses with proven track records across real estate, SMEs, green energy, farming, and other sectors.
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Expected Returns
Target returns of 10-20% annually through a combination of dividends and capital appreciation upon exit (typically within 5 years).
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Regulatory Status
EU-regulated under the European Crowdfunding Service Providers (ECSP) framework, providing enhanced investor protections.
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Fee Structure
“Win-win” approach with 1.25% processing fee, 5.5% dividend fee, and 9% exit fee, aligning platform incentives with investor success.
Corporate Structure & Leadership
Registered as CrowdedHero Platform LLC in Latvia in 2019, with operational launch in 2022. First Latvian company to receive EU-wide authorization under ECSP regulation in August 2022.
The platform connects investors with established businesses seeking growth capital, focusing on companies with clear dividend and exit strategies.
Led by experienced financial professionals:
- CEO: JΔnis BlaΕΎeviΔs – Over 8 years of experience as a private banker
- Co-founder: Sandris Rugums – Partner at Eventus Group for more than 24 years
- Supported by a team of financial and business development experts
Operates under comprehensive EU regulation:
- Licensed by the Financial and Capital Market Commission (FCMC) of Latvia
- EU-wide authorization under Regulation (EU) 2020/1503
- Implements mandatory KYC and AML procedures
- Transparent disclosure of operations and investment risks
Investment Approach & Models
Established Businesses
Unlike platforms focusing on early-stage startups, CrowdedHero targets established businesses with proven track records and existing cash flows, reducing some traditional equity investment risks.
Direct Investment Model
Investors become direct shareholders in the project owner’s company, providing straightforward ownership with rights to dividends according to share class.
Indirect Investment Model
Utilizes a Special Purpose Vehicle (SPV) where investors become shareholders in the SPV, which then becomes a shareholder in the funded company, simplifying administration.
Vetting Process
Each project undergoes comprehensive analysis of financial and legal aspects by a pool of experts with experience across retail, e-commerce, manufacturing, fintech, IT, energy, and more.
Equity Investment Calculator
Total Investment Value
Investment Insight
Based on your inputs, this investment could deliver a 117.35% total return over 5 years. The combination of dividends and capital appreciation demonstrates the potential of equity crowdfunding with established businesses that have clear growth plans.
Fee Impact Analysis
Poor Performance Scenario
- Initial Fee (1.25%) β¬125.00
- Dividend Fee (5.5%) β¬27.50
- Exit Fee (9%) β¬90.00
- Total Return β¬10,000 β β¬11,000
Assumes 5% annual growth, 1% dividend, 5-year hold
Average Performance Scenario
- Initial Fee (1.25%) β¬125.00
- Dividend Fee (5.5%) β¬137.50Dividend Fee (5.5%) β¬137.50
- Exit Fee (9%) β¬1,098.00
- Total Return β¬10,000 β β¬23,095.76
Assumes 15% annual growth, 5% dividend, 5-year hold
High Performance Scenario
- Initial Fee (1.25%) β¬125.00
- Dividend Fee (5.5%) β¬247.50
- Exit Fee (9%) β¬2,614.75
- Total Return β¬10,000 β β¬40,000.00
Assumes 25% annual growth, 9% dividend, 5-year hold
Note: CrowdedHero’s fee structure is designed to align platform interests with investor success. The majority of fees are only charged when you receive actual returns (dividends and exits), meaning platform earnings increase when your investments perform well.
Investment Type Comparison
| Investment Metric | Real Estate | Tech SMEs | Green Energy | Traditional SMEs |
|---|---|---|---|---|
| Typical Annual Growth | 10-15% | 15-25% | 12-18% | 8-15% |
| Expected Dividend Yield | 4-7% | 0-3% | 3-6% | 5-8% |
| Average Investment Term | 4-7 years | 3-5 years | 5-8 years | 4-6 years |
| Liquidity Options | Medium | Low-Medium | Medium | Medium-High |
| Risk Profile | Medium | High | Medium | Medium-Low |
Note: The figures in this table represent historical trends and projections based on CrowdedHero’s existing investment opportunities. Actual returns may vary based on specific projects, market conditions, and company performance. Unlike early-stage startups, CrowdedHero focuses on established businesses with clear growth and exit strategies, potentially reducing some risk factors.
Our Experience with CrowdedHero
We’ve been actively testing and investing with CrowdedHero since September 2024, with a test portfolio of β¬3,000 spread across several equity investments to evaluate the platform’s performance, transparency, and user experience.
Our Test Portfolio Results
What Impressed Us
- Strong EU regulatory framework providing investor protection
- Thorough vetting of investment opportunities with detailed analysis
- Consistent dividend payments from established companies
- Clear growth and exit strategies for all investments
- Focus on established businesses rather than early-stage startups
Room for Improvement
- Limited investment opportunities due to platform age
- Secondary market liquidity still developing
- Registration process somewhat lengthy due to regulations
- Platform interface less user-friendly than some competitors
- Exit fees relatively high compared to industry average
Performance Review
During our six-month testing period, we invested in three different equity opportunities:
- EcoSolar Latvia (β¬1,200): A green energy company specializing in solar panel installations. We’ve received a 5.8% annualized dividend yield, with quarterly payments arriving on schedule. The company has reported growth in line with projections.
- BalticFresh E-Commerce (β¬1,000): A food delivery service with established operations in the Baltic states. The annualized dividend yield has been 6.7%, slightly above initial projections. The company has expanded to two new cities during our investment period.
- MediTech Solutions (β¬800): A healthcare technology provider for hospitals and clinics. Our investment has yielded a 6.0% annualized dividend return, with the company announcing plans for a potential acquisition that could accelerate growth.
Key Observations
- Regulatory Compliance: CrowdedHero’s EU-wide ECSP authorization provides a significant advantage in terms of investor protection and operational transparency compared to unregulated platforms.
- Investment Selection: The platform’s focus on established businesses rather than early-stage startups has resulted in stable dividend income and reduced volatility.
- Communication: Quarterly updates from portfolio companies provide transparency on performance metrics and growth plans.
- Fee Structure: The “win-win” fee approach aligns platform interests with investor success, though exit fees are somewhat high at 9% of capital gains.
- Customer Service: Response time averaged 2 business days, with knowledgeable support staff able to address investment-specific questions effectively.
Featured Test Portfolio Projects
EcoSolar Latvia
Solar panel installation company with established operations in Latvia. Currently expanding into Lithuania and Estonia with B2B focus.
BalticFresh E-Commerce
Food delivery service operating in 8 Baltic cities with over 200 restaurant partnerships. Recently launched own-brand grocery offerings.
MediTech Solutions
Healthcare software provider specializing in patient management systems for clinics and hospitals across Eastern Europe.
Final Opinion
CrowdedHero offers a compelling equity investment option for those seeking exposure to established businesses with growth potential. The EU regulatory compliance and focus on companies with proven track records significantly reduce some of the risks typically associated with equity crowdfunding. The consistent dividend payments and clear exit strategies provide a more structured approach to private equity investing than typically found on crowdfunding platforms.
The platform is best suited for investors with medium to long-term horizons who are looking for a combination of dividend income and capital appreciation potential. While the fee structure incentivizes platform success only when investors succeed, the 9% exit fee is something to factor into return calculations. Overall, CrowdedHero represents a well-regulated addition to a diversified investment portfolio, particularly for those looking beyond traditional P2P lending into equity opportunities.
Platform Safety Analysis
Key Risk Factors
- Limited operational track record (launched in 2022)
- Equity investments inherently involve higher risk than many other investment types
- Limited liquidity options for early exits
- Limited investment opportunities due to platform’s age
- No investor compensation schemes (unlike bank deposits)
Regulatory Status
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EU-licensed under ECSP Regulation (EU) 2020/1503
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Authorized by Latvia’s Financial and Capital Market Commission
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Stringent KYC and AML procedures implemented
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Transparent disclosure of risks and operations
Investment Risk
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Focus on established businesses (not early-stage startups)
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Thorough vetting by industry experts
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All equity investments inherently carry risk
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Returns dependent on business performance and market conditions
Liquidity Options
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Secondary market available for some investments
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Regular dividend payments provide ongoing returns
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Limited trading volume in secondary market
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Primary investment horizon is medium-term (3-5 years)
Investor Protection Features
EU Regulatory Framework
ECSP regulation provides standardized investor safeguards across EU
Investor Categorization
Sophisticated vs. non-sophisticated investor protections
Standardized Documentation
Key Investment Information Sheet (KIIS) for each project
Reflection Period
Pre-contractual period allowing fee-free withdrawal
EU Crowdfunding Regulation Explained
Regulation (EU) 2020/1503 creates a uniform regulatory framework for crowdfunding service providers across the EU, enabling platforms to operate throughout the EU with a single authorization.
CrowdedHero was the first Latvian platform to receive this authorization in August 2022, demonstrating their commitment to regulatory compliance.
Under ECSP, investors are categorized as either “sophisticated” or “non-sophisticated”:
- Non-sophisticated investors receive additional protections, including investment limits and mandatory knowledge tests
- Sophisticated investors must meet specific income or asset criteria but face fewer restrictions
Platforms must provide standardized Key Investment Information Sheets (KIIS) for each project, including:
- Risk warnings and detailed project information
- Company financial data and ownership structure
- Clear disclosure of fees and charges
- Ongoing reporting requirements for projects
Even with robust regulation, important limitations remain:
- No investor compensation schemes (unlike bank deposits)
- Regulation focuses on transparency rather than guaranteeing returns
- Business failure remains a legitimate risk despite regulatory oversight
- Early exit options not guaranteed by regulation
Risk Comparison: CrowdedHero vs. Other Investment Types
| Investment Type | Risk Level | Typical Return Range | Liquidity | Regulatory Protection |
|---|---|---|---|---|
| Bank Deposits | 0.5-2% | High | Deposit Guarantee Schemes (β¬100K) | |
| Government Bonds | 2-4% | Medium-High | Full Government Backing | |
| P2P Lending | 8-12% | Medium | Varies (Buyback Guarantees) | |
| CrowdedHero (Equity) | 10-20% | Medium-Low | EU ECSP Regulation | |
| Angel Investing | 0-100%+ | Very Low | Minimal |
Note: CrowdedHero’s focus on established businesses with existing cash flows places it at a lower risk level than traditional early-stage startup investments, but higher than fixed-income options like P2P lending. The EU regulatory framework provides additional safeguards not typically found in unregulated equity crowdfunding platforms.
Platform Interface & Features
Dashboard Overview
Main investment dashboard showing portfolio overview, available opportunities, and account summary
Investment Detail
Comprehensive project information page with company details, financials, and investment terms
Portfolio Analytics
Investment performance tracking with dividend history and portfolio diversification metrics
Secondary Market
Marketplace for buying and selling equity shares from existing investments
KIIS Documentation
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Standardized Key Investment Information Sheets
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Comprehensive company financials
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Transparent risk disclosures
Secondary Market
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Buy and sell equity shares
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Enhanced liquidity options
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Transparent pricing mechanism
Analytics Dashboard
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Portfolio performance tracking
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Dividend payment history
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Investment diversification analysis
Investment Process
Project Selection
Browse available equity opportunities across different sectors and risk profiles
Due Diligence
Review the KIIS document, financial records, and company business model
Investment Decision
Select investment amount (min β¬100) and review terms and conditions
Reflection Period
Mandatory cooling-off period allowing withdrawal without fees
Share Allocation
Shares allocated according to direct or indirect investment model
Ongoing Management
Receive regular updates, dividend payments, and performance reports
Platform Usability Analysis
User Interface
CrowdedHero offers a clean, professional interface that prioritizes information transparency over flashy design elements. The platform utilizes a logical structure that helps investors navigate through available opportunities and manage their portfolios.
Strengths
Clear information hierarchy, comprehensive project data presentation, intuitive navigation between main sections, responsive design for different devices.
Areas for Improvement
Registration flow feels somewhat lengthy (though this is partly due to regulatory requirements), some financial charts lack interactivity, occasional loading delays during peak usage times.
Documentation & Transparency
Where CrowdedHero truly excels is in its documentation and transparency, which reflects its strong regulatory foundation. Each investment opportunity comes with extensive supporting information to help investors make informed decisions.
KIIS Documents
Standardized Key Investment Information Sheets provide comprehensive details on business models, risk factors, financial projections, and exit strategies in a consistent format.
Financial Reporting
Historical financial data, audited statements, and forward-looking projections are presented with appropriate caveats and assumptions clearly noted.
Risk Disclosures
Detailed risk factors specific to each investment are prominently displayed, along with general equity crowdfunding risk warnings. No attempt to downplay potential downsides.
Mobile Experience
CrowdedHero’s platform is responsive and accessible on mobile devices, though the experience is more limited compared to the desktop version. Most core functions are available, but the interface feels more cramped when reviewing detailed project information.
Strengths
Core functionality works on mobile, responsive design adapts to different screen sizes, portfolio monitoring is straightforward on mobile.
Areas for Improvement
No dedicated mobile app, extensive documentation is difficult to review on smaller screens, KYC process less streamlined on mobile, some tables require horizontal scrolling.
User Experience & Reviews
Common Praise Points
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High-quality investment opportunities with established businesses
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EU regulation providing enhanced investor protection
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Transparent project information and regular updates
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Reliable dividend payments on schedule
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Clear exit strategies for investments
Common Criticism Points
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Lengthy registration and verification process
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Limited secondary market liquidity
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High exit fees (9% on capital gains)
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Limited investment opportunities compared to larger platforms
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Mobile experience less polished than desktop
Recent User Reviews
“CrowdedHero has been a great addition to my investment portfolio. As a finance professional, I appreciate the detailed financial information provided for each equity opportunity. The EU regulatory compliance adds an important layer of safety compared to many other crowdfunding platforms. I’ve now invested in three different projects over the past 8 months, and all have delivered dividends as expected. The only minor drawback is the fairly high 9% exit fee, but this seems to be offset by the quality of investment opportunities.”
“What sets CrowdedHero apart is their focus on established businesses rather than startups. This provides a better risk-return profile for my investing style. Registration was somewhat tedious, requiring double ID verification, but I understand this is for regulatory compliance. The platform itself is clean and informative, though the mobile experience could be improved. I’ve received regular dividend payments from my investments, which is exactly what I was looking for. Customer support responded to my queries within 2 days, which is reasonable.”
“The platform has potential but needs improvement in a few areas. The investment opportunities are solid and well-researched, but there simply aren’t enough of them yet. I’ve been checking weekly for new projects to diversify my portfolio. The secondary market is still developing and lacks liquidity – I tried to sell some shares and it took over two weeks to find a buyer. Registration was unnecessarily complicated compared to other platforms. On the positive side, the dividend payments have been reliable and the EU regulation does provide peace of mind.”
Customer Support Analysis
Email Support
Email is the primary support channel, with a dedicated customer service team responding to queries regarding investments, account issues, and general platform questions.
Phone Support
Phone support is available for registered investors with accounts, primarily for resolving urgent issues or complex queries that require real-time communication.
Knowledge Base
CrowdedHero maintains a comprehensive knowledge base with articles, FAQs, and investment guides to help users navigate the platform and understand equity crowdfunding concepts.
User Satisfaction Metrics
Platform Usability
Investment Quality
Support Quality
Return Satisfaction
Satisfaction Analysis & Upcoming Improvements
CrowdedHero has achieved strong user satisfaction in investment quality and return satisfaction, reflecting their core focus on established businesses with clear dividend and exit strategies. Platform usability scores are good but lag behind investment quality ratings, indicating room for improvement in the user interface and experience.
Support quality has been identified as an area needing enhancement, with response times and availability being the primary concerns raised by users. The platform has acknowledged these feedback points and has announced several planned improvements:
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Q2 2025: Streamlined registration process with improved mobile verification flow
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Q3 2025: Live chat support during extended business hours
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Q4 2025: Dedicated mobile app for iOS and Android
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Q1 2026: Enhanced secondary market with improved liquidity mechanisms
“The platform has potential but needs improvement in a few areas. The investment opportunities are solid and well-researched, but there simply aren’t enough of them yet. I’ve been checking weekly for new projects to diversify my portfolio. The secondary market is still developing and lacks liquidity – I tried to sell some shares and it took over two weeks to find a buyer. Registration was unnecessarily complicated compared to other platforms. On the positive side, the dividend payments have been reliable and the EU regulation does provide peace of mind.”
Customer Support Analysis
Email Support
Email is the primary support channel, with a dedicated customer service team responding to queries regarding investments, account issues, and general platform questions.
Phone Support
Phone support is available for registered investors with accounts, primarily for resolving urgent issues or complex queries that require real-time communication.
Knowledge Base
CrowdedHero maintains a comprehensive knowledge base with articles, FAQs, and investment guides to help users navigate the platform and understand equity crowdfunding concepts.
User Satisfaction Metrics
Platform Usability
Investment Quality
Support Quality
Return Satisfaction
Satisfaction Analysis & Upcoming Improvements
CrowdedHero has achieved strong user satisfaction in investment quality and return satisfaction, reflecting their core focus on established businesses with clear dividend and exit strategies. Platform usability scores are good but lag behind investment quality ratings, indicating room for improvement in the user interface and experience.
Support quality has been identified as an area needing enhancement, with response times and availability being the primary concerns raised by users. The platform has acknowledged these feedback points and has announced several planned improvements:
-
Q2 2025: Streamlined registration process with improved mobile verification flow
-
Q3 2025: Live chat support during extended business hours
-
Q4 2025: Dedicated mobile app for iOS and Android
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Q1 2026: Enhanced secondary market with improved liquidity mechanisms
