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What is overfunding?
What is overfunding?
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Written by Wally
Updated over a year ago

A crowdfunding campaign goes overfunding when the invested capital exceeds the fundraise target amount.

The capital raised, even in the case of overfunding, must be kept within a predetermined maximum amount, as defined within the KIIS.

Usually, the debt ratio decreases, i.e. the company reduces the debt owed to the bank. In other circumstances, it may instead lead to a decrease in the equity share that the entrepreneur has to invest directly.

In any case, when a campaign goes overfunding, the expected ROI or exposed interest rate remains unchanged for the investor.

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