When people discover a crowdfunding campaign online, they often only see the final result: the company presentation, the investment terms and the fundraising page.
What is less visible is everything that happens before a campaign is even allowed to move to the next stage.
At Spreds, companies do not simply upload a pitch deck and immediately raise funds. Before any project can proceed further, it first goes through an internal pre-screening process designed to better understand the company, identify potential red flags and determine whether the project is suitable to continue in the process.
This pre-screening phase exists both for investors and entrepreneurs.
For investors, it creates an additional layer of structure and transparency before opportunities appear on the platform. For entrepreneurs, it is also a way to identify potential issues early, improve the quality of the fundraising preparation and better understand what will be required later in the process.
The pre-screening starts when a company submits an application and shares initial documentation such as a pitch deck, financial information and corporate details. The application is then reviewed internally by several teams, including legal and compliance.
During this phase, multiple elements may already be reviewed. This can include the company identity and structure, governance, compliance aspects, potential AML-related risks, conflicts of interest and certain background checks on key individuals involved in the project.
When relevant, we may also perform an initial and non-binding review regarding potential Tax Shelter eligibility. However, being eligible for the Tax Shelter is not mandatory to pass the pre-screening process. A company can still be accepted without Tax Shelter eligibility.
At the end of this first stage, several outcomes are possible. A project can move forward, be rejected, require additional information or be accepted under certain conditions before continuing further in the process.
Importantly, the pre-screening phase should not be interpreted as investment advice or as a guarantee of success. Startups and SMEs remain risky investments by nature. The objective is not to eliminate risk entirely, but to create a more professional, transparent and structured environment before a campaign potentially moves toward a full screening and launch process.
In practice, many projects already evolve significantly during this preparation phase. Documentation may need to be clarified, transaction structures adjusted or communication improved before a project is considered ready for the next steps.
Crowdfunding is not only about having a good idea. Investors also pay attention to governance, preparation, communication quality and credibility. The work done before a campaign becomes visible is therefore often just as important as the campaign itself.
In a future article, we will also explain what happens during the full screening process before a campaign can officially go live.