Types of deals offered by FundedHere
We offer Equity and Debt-Based crowdfunding, as well as ListCo Bonds.
How does equity crowdfunding work?
Equity crowdfunding is a direct investment made by an investor to the start up. An investor exchanges cash (facilitated by FundedHere) for a percentage of ownership in the start up.
· Let’s say a start up is looking to raise SGD $500,000.
· It is willing to give away 20% of the company to raise this amount.
· You decide to invest $50,000, which is 10% of the raising amount.
· You will receive 2% ownership in the start up (which is 10% of 20%).
You will only receive the shares if the fundraising campaign is successful. If not, any investment made will be refunded to you.
If you would like to liquidate your shares, this will only be possible if the company goes through an IPO or acquisition. There are several secondary markets available for buy-and-sell, however this also depends on whether the start up is open to such activities.
Why invest in equity (start ups)?
- The next generation of startups place a huge emphasis on technology which gives them access to the global markets.
- Enjoy attractive returns on investment by entering an earlier round at a significantly lower valuation; and
- Diversify your portfolio– startups have a low correlation with traditional asset classes.