FAQs
Investors
1. What are the benefits of joining 1Crowd?
  • Focused on providing investor members opportunities to invest in curated Indian start-ups and early stage ventures
  • Multi-product platform with a couple of innovative products in the offing
  • Access to business plans and financial models of the startups
  • Provide investment monitoring on behalf of investor members
  • Entrepreneurs have access to a pool of mentors, who can contribute to their development substantially
2. Is there any eligibility criteria for investors to sign up?
Membership is currently restricted to the following:
  • An entity who falls within the definition of Qualified Institutional Buyer ("QIB") as defined in the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 as amended from time to time;
  • A Company ("Company") incorporated under the Companies Act, 1956 or the Companies Act 2013 (of India) or equivalent legislation in force in a foreign country with a minimum net worth of Rs. 20,000,000 (Rupees Twenty Million or equivalent in the currency of the foreign country), the net worth of whom has been certified by a chartered accountant if it is a resident in India and by a certified public accountant or a chartered accountant or a banker if it is a resident outside India, or by a resolution of the board of directors), as may be acceptable to us;
  • An individual ("HNI") who is over 18 (eighteen) years of age and who has a minimum net worth of Rs. 20,000,000 (Rupees Twenty Million or equivalent in the currency of the country where the individual is resident) or more and who has provided a declaration in the form of a certificate certifying/confirming his/her net-worth. Where a HNI is investing through a holding company or such other legal entity, then the net worth requirement of such holding company or other legal entity shall be reckoned on the basis of net worth of the principal shareholder/ owner/ promoter of such company or legal entity. Such a company or legal entity shall provide a net worth certificate by a chartered accountant if it is a resident in India and by a certified public accountant or a chartered accountant or a banker for if it is a resident outside India, or such other certification, as may be acceptable to us confirming that its principal shareholder/ owner/promoter meets the net-worth criterion applicable to a HNI as set out above.
3. Who can invest in a start-up?
Subject to the eligibility criteria as laid down by us, investor members who have the risk taking ability and are fully authorized by laws of their jurisdiction to invest through a Crowdfunding platform. These can be resident Indians, Non-Resident Indians, foreign nationals etc. (Save for US persons).
4. How can investors register on 1Crowd?
We have a simple two step process for investors to register:
Step 1: Investors are required to fill basic information and accept our Terms of Use. In addition, they are required to make a self-declaration as per our eligibility criteria mentioned above.
Upon providing the above details, a 1Crowd representative will contact you as soon as possible and guide you with the step 2 of the on-boarding process.
Step 2: You would be required to accept detailed Terms and Conditions and upload certain Know Your Client (KYC) documents.
5. What are the charges for investors?
Once an investor has registered, 1Crowd will take him/her through the fee structure.
6. What information of the start-up will investors have access to?
Investors will have access to brief / summary information provided by the start-up via the 1Crowd platform. Based on the interest evinced by investors, more detailed information including the detailed business plan, financials etc. will be provided by the start-up via the 1Crowd platform.
7. Who conducts due-diligence of start-ups and how is this conducted?
Start-ups will be displayed on the 1Crowd platform to the investors only after due diligence has been conducted by us and an independent screening committee specially formed for the purpose of conducting due diligence of such start-ups.
8. What is the minimum and maximum amount that an investor can invest in a start-up?
Investors will be required to invest a minimum of USD 10,000 (or equivalent in INR) per investment. There is no limit to the maximum investment that can be made by you.
9. What is the maximum number of investors who can invest in a single start-up?
Under current Indian laws, privately held companies (as most start-ups are organized) shall have no more than 200 shareholders (excluding QIBs and employees of the company) in a financial year.
10. How do investors connect with these start-ups?
Investors will have a chance to connect with these start-ups through chat rooms. Chat rooms made available to investors and start-ups give an opportunity to them to interact with each other and provide valuable inputs to the business.
11. What are the post investment rights of investors?
Pursuant to a successful fund raising process through the 1Crowd platform, the start-up will issue shares/ instruments directly to the investors. These investors will have voting rights and will be governed by a shareholders' agreement. An investor may have the option to enter into this shareholders' agreement, however, if he/she does not wish to enter the same, his/her rights shall be governed by applicable laws of India and contractual rights under the shareholders' agreement shall not be available to them. The shareholders put together will have a board seat.
Start-ups, via the 1Crowd platform, shall also be required to display information on a regular basis as may be required by the statute or by the management of 1Crowd.
12. How do investors exit their investments?
Typically, though not always, investors would exit at the time of a "Series A" fund raising by the start-up company. In addition, they can also exit when the start-ups are sold / acquired in an M&A (mergers and acquisitions) transaction, or in an initial public offering, where the start-up has decided to access the public markets or where other investors have sought to buy out its shares.
13. If start-ups fail, who is liable to the investors?
Investments in start-ups bear an inherent risk. It is for this reason that it is generally recommended to create a diversified portfolio of investments, which will have the potential to deliver gains and absorb capital losses in the aggregate. The 1Crowd platform is not liable to the investor members if any start-up fails.
14. What are the tax implications of investments made through 1Crowd?
Tax considerations of investments made through the platform will vary depending upon circumstance and the particular assessee in question. We request investors to consult a tax advisor to understand the tax implications of investments in start-up companies.
Entrepreneurs
1. How do start-ups benefit?
  • Start-ups will have access to a large pool of investor members from around the world; they will be screened by an independent committee ("Screening Committee") before allowing such access.
  • We will provide guidance, if needed, on building a business plan and financial model, screening proposals / carrying out diligence of the start-ups etc.
  • Start-ups will be able to leverage the pool of mentors and platform partners who can help in managing and growing their business successfully.
2. Is there any eligibility criteria for Start-ups to sign up?
Start-ups, which are not more than 4 years old, can access this platform.
Start-ups are restricted if: a) they are engaged in real estate and other activities which are not permitted under the industrial policy of the Government of India; b) they propose to use the funds raised for providing loans or investment in other entities.
3. What are the features of 1Crowd that Start-ups have access to?
  • Access to a large pool of Investor members from different countries
  • Mentors who have expert knowledge and experience from varied fields
  • Service partners in areas such as accounting, legal and compliance etc.
  • Other unique products (to be announced soon)
4. Will the information that start-ups provide remain confidential?
1Crowd shall not disclose confidential information to any person, except as required under the statute or by a government authority or with explicit permission of the provider. Read here for full details.
5. What are the charges/fees for start-ups?
1Crowd may charge some access/listing fees which will be mutually agreed between us.
6. How do I delete my account on 1Crowd?
1Crowd will help you to delete your account on our website. You can reach us at
7. Can a start-up restrict any investor from investing?
Yes, you will be able to restrict investors, however, we suggest you contact us before making a decision.
8. Will there be any Co-investors?
Yes, if needed. We have access to Co-investors (e.g. accelerator funds) who may co-invest on the same terms as every investor member of 1Crowd.
9. What happens if the fund raise is not successful?
A fund raising campaign is not considered successful if the start-up has not received subscription consideration of at least 90% of the amount sought to be raised. However, it can be considered successful, subject to the potential investor's approval.
10. How does the fund transfer take place?
Start-ups will open a separate bank account, details of which will be provided to the investors. The money will then be transferred electronically.
11. What happens after the funds are raised?
  • Pursuant to a successful fund raising process through the 1Crowd platform, the Start-up will issue shares/instruments directly to the investor and sign a single shareholders’ agreement.
  • Start-ups, via the 1Crowd platform, shall also display information for the investors on a regular basis as may be required by the statute or by the management of 1Crowd.
  • The shareholders’ agreement will also lay out the rights and responsibilities of the investors.