Vermögensanlagen-Informationsblatt (VIB) – The Compact Guide for Founders & Entrepreneurs

Direct Access to Financing: How VIBs Make It Easier to Attract Investors

Many ideas don’t fail because of the concept, but because of funding. For those who don’t want to rely solely on banks or individual investors, Germany offers another option to raise capital: the Vermögensanlagen-Informationsblatt (VIB).

A VIB makes it easier to access potential backers. Instead of a lengthy prospectus, you create a short, standardized document. It presents the most important facts in a clear, concise format. This lowers barriers, makes it easier to present projects effectively, and helps build investor trust more quickly.

1. What Is a VIB? The Basics at a Glance

A VIB is a legally required document that provides investors with the key facts about an investment. It spans only a few pages and is designed to make the opportunities, risks, and framework of a project easy to understand.

The Legal Framework

The VIB is based on the Vermögensanlagengesetz (VermAnlG – German Investment Act) and is overseen by BaFin, Germany’s financial regulator..

When Is a VIB Required?

A VIB is generally required whenever an investment is offered to the public. Depending on the case:

• With a sales prospectus: The VIB must be provided in addition to the prospectus.
• Prospectus-free offerings (e.g., under §2a/§2b VermAnlG): The VIB is mandatory instead of a prospectus, provided that the respective legal conditions and thresholds (e.g., total volume, distribution channel) are met.
• Exceptions (§2/§2c VermAnlG): In certain cases, neither a prospectus nor a VIB is required (e.g., small-scale offerings or non-profit organizations).

This provides a legally compliant way to raise capital—without the high costs of a full prospectus.

The Structure of a VIB

The VIB follows a standardized format to make it easier for investors to compare different projects. Typically, it is no longer than three pages and includes the following components:

• Short description of the investment: Form and content of the offer
• Risks: For example, default risks or subordination
• Framework conditions: Term, interest, repayment, profit participation
• Rights and obligations: Concrete consequences for the investor
• BaFin review: The authority only checks for completeness, not for economic viability

This way, both sides benefit: founders present their financing in a clear and structured manner, while investors receive relevant information in a directly comparable format.

2. Why a VIB Is Essential

Anyone looking to raise capital publicly—whether through subordinated loans, profit participation rights, or crowdinvesting—cannot proceed without a VIB. It is legally required and signals to investors that a project is professionally structured and fully compliant with regulations.

Legal Certainty from the Start

A public offering without a valid VIB is not permitted. Attempting it anyway risks fines, cease-and-desist orders, or even a project shutdown.

With a VIB in place, financing is legally secure from the outset. This significantly reduces the risk of intervention by BaFin or potential claims from investors later on.

Building Investor Trust

Investors value professionalism. A well-prepared VIB shows that a founder understands the rules and takes them seriously. This lowers perceived uncertainty and increases investors’ willingness to commit.

Put simply: risk arises where information is missing. The VIB closes that gap.

A Competitive Advantage Through VIBs

Many founders avoid VIBs—whether out of lack of awareness or fear of formalities—and as a result, miss out on an important financing option. Those who embrace the process, however, gain a clear advantage: they stand out from competitors and tap into funding sources that others leave untapped.

3. Who Is a VIB Relevant For?

A VIB isn’t just for major financial market players—it’s especially valuable for founders, small businesses, and project developers. Many don’t even realize their ventures may qualify, or that a VIB could unlock access to new sources of funding.

For early-stage startups, a VIB enables the involvement of numerous small investors via crowdinvesting platforms. This raises capital without relying on a single backer, while also building a community that actively supports the project.

Small businesses and creatives can benefit too. A café, yoga studio, or cultural festival can attract investment directly from their own customers or fan base, generating both financial backing and stronger loyalty.

Even real estate and energy projects can be financed with a VIB. A multi-family housing project or solar park, for example, can be offered transparently to local residents—with clear details on terms, returns, and risks.

In short, a VIB applies to far more projects than most founders assume. It opens up financing opportunities that often remain overlooked, even though they are legally secure and relatively easy to access.

4. Typical Use Cases for VIBs in Practice

A VIB can be used in a range of financing models beyond traditional bank loans:

• Subordinated loans: Capital in exchange for fixed interest, with fewer collateral requirements.
• Profit participation rights: Share in profits without giving up company equity.
• Token and blockchain models: A legally compliant framework for innovative investment structures.
• Crowdinvesting: Many small investors pooling capital, often via specialized platforms.

What these models have in common:

• Legal certainty for public offerings
• Transparency for investors
• Comparability across different projects
• Greater efficiency compared to full prospectuses
• Trust-building through clear, standardized structures
  

5. The Biggest Misconception: VIBs Can Only Be Created by Lawyers

The name may sound complicated, and many people immediately associate it with legal jargon and law firms. For a long time, that was indeed the case: anyone who needed a VIB had to have it drafted by a law firm. This led to the widespread assumption that a VIB is purely a lawyer’s product.

But the real purpose is not to weigh founders down with regulations—it’s to establish a common language: investors can see exactly what they’re committing to, while entrepreneurs present their projects clearly and transparently.

More Clarity, Less Dependence

Many still believe a VIB can only be prepared by a law firm. Today, however, digital solutions such as the Broadside VIB Generator make the process far easier.

The advantages:

• Founders can create their VIB independently, step by step.
• Costs are reduced by around 60% compared to traditional legal services.
• Entrepreneurs keep full control over their financing instead of handing it over to third parties.

6. How to Create a VIB: Traditional vs. Digital

Traditionally, the process went through specialized law firms. Today, however, there’s a digital alternative that makes things far simpler. Both approaches have their pros and cons and the differences are crucial for entrepreneurs.

The Traditional Law Firm Route

For a long time, going through a law firm was the only way. The typical process looked like this:

1. The founder explains their project in broad terms.
2. The law firm drafts a customized information sheet.
3. After rounds of feedback and corrections, the document is submitted to BaFin.
4. If BaFin raises questions, further revisions are made—often at additional cost.

The drawbacks are obvious: high legal fees (often tens of thousands of euros) and processing times stretching over weeks or even months. For small businesses, startups, or cultural initiatives, this path is often neither affordable nor practical. It also creates dependency, since founders rarely have full transparency over the process.

The Digital Path with Generators

This is where digital solutions like the Broadside VIB Generator come in. Instead of lengthy legal procedures, founders simply fill out a structured online form. It covers all the key points: type of investment, duration, opportunities, risks.

Based on this input, the system automatically generates a complete VIB in PDF format. Ready within 24 hours.

The advantages:

• Speed: weeks shrink down to hours until the document is ready.
• Cost savings: 60–80% cheaper than law firm fees.
• Transparency: founders stay in control and can make changes themselves.
• Scalability: multiple projects can be handled quickly and efficiently.

Digitalization is reshaping the market: what used to be costly and exclusive is now accessible and efficient. A VIB no longer needs to be a roadblock. Instead, with the right tools, it can be created independently, legally compliant, and at a fraction of the cost.

7. Costs and Time Savings

For founders and entrepreneurs, two factors matter most when raising capital: How long will it take before I can get started? And what will it cost?

A VIB is mandatory as soon as a public financing round is planned. The real question, then, isn’t if you need one—but how you create it. The traditional route is typically expensive and time-consuming, while the digital route saves both time and money.

Direct Comparison: Law Firm vs. Generator

Strategic Advantage: With a digital generator, founders reach the market faster, can approach investors immediately, and avoid tying up capital in lengthy preparations.

8. Conclusion: VIBs Open Up New Paths to Financing

The Vermögensanlagen-Informationsblatt (VIB) is still relatively unknown to many founders, yet it offers a simple, transparent way to present projects and attract funding. Investors receive the information they need to make decisions—without having to sift through lengthy prospectuses.

With digital solutions, access has become much easier. Instead of drawn-out legal processes with hefty fees, a VIB can now be created in just 24 hours. The Broadside VIB Generator reduces costs by an average of 60% and gives founders full control of the process from start to finish.

As a result, the VIB opens up a financing channel that has often gone unused—particularly for startups, small businesses, and project developers.