On our request, the Swiss Financial Market Supervisory Authority (Finma) has examined the investiere platform and business model. It concluded in writing that Verve Capital Partners AG, the firm operating investiere, has no requirement to be regulated by Finma. Finma acts as an oversight authority of banks, insurance companies, exchanges, securities dealers, collective investment schemes, distributors and insurance intermediaries.
Our answers to your most frequently asked questions
Is your platform approved by regulators?
Do you charge entrepreneurs a fee?
As a startup company you pay a 4% success-based service fee on the total amount raised via investiere as well as CHF 3’000 in shares.
How do I register my start-up on investiere?
Can I use investiere and still protect my business idea?
Yes. Investment proposals on investiere are based on an iceberg principle:
- Public visitors can only see a selection of featured investment proposals, and for those they only see a short "what we do" statement as well as a short movie
- Only investors that were manually approved by our team can see the online investment proposal (an executive summary version of your business plan) - you can decide for yourself how much you would like to share of your business details at this level
- Once an investiere-approved investor indicates interest in your company and only once approved also by you individually (based on his personal profile), we'll send him your detailed business plan - you can choose if you require him to sign a Non-Disclosure-Agreement (NDA) before or not
- The online data room on investiere that contains your due diligence documents cannot be accessed by investors until they have signed a term sheet for an investment in your company
Therefore, as of today, we were able to protect our entrepreneurs' business secrets successfully.
Do you also provide advisory services?
Because of capacity reasons we cannot offer them to all companies.
We can only support you with your legal, deal structuring finance/valuation or business modelling needs if you have successfully passed our assessment process and our team has sufficient capacity available.
Are you a crowdfunding site?
No. investiere is not a crowdfunding site.
Crowdfunding is a vehicle that has proven successful for many art and entertainment projects and non-profit organizations, however we like to think of ourselves as a hybrid model with a more traditional venture capital approach.
Often, crowdfunding sites simply act as a listing service where entrepreneurs display their start-ups hoping to get funding from the "crowd" (investors). There is little if any due diligence done on the part of the crowdfunding site for the start-ups listed. Minimum investments for crowdfunders average ~US$250, where our minimum is usually US$10,000.
Are we allowed to raise capital during the funding round outside of investiere?
Sure. Unsolicited proprietary private investors (friends, family, existing investors) if timely announced, are acceptable. Private investor clubs, family offices and other institutional investors where neither investiere (Verve Capital Partners) nor one of investiere's (Verve Capital) investors played an active role are also eligible to invest outside of investiere's platform.
Do all start-ups have to have a movie?
Yes. Once the engagement letter and confirmation of mandate to collaborate are signed, we can support you. We have an experienced videographer that we prefer to work with. But you are free to produce a meaningful and up-to-date movie on your own of course.
How does investiere evaluate a start-up?
Can I come and meet you and pitch my company?
Sure, although we would like to see your executive summary first so we have an idea of the start-up ahead of time. To send us this executive summary, please follow our instructions on how to raise funds via investiere.
Will (potential) investors sign a NDA?
Yes, if required most investors have no problem signing a non-disclosure agreement. We'll handle that process for you.
Will investiere sign a Non-Disclosure Agreement (NDA)?
Yes, if required we will provide you with a standard NDA that we will happily sign.
How long are the financing rounds?
Typically financing rounds are no shorter than 3 months and no longer than 6 months in duration. We feel this keeps options fresh for investors and provides start-ups with honest feedback about the reception of their concept in the marketplace.
What happens if we do not raise enough to meet the minimum financing required?
If the minimum capital (defined prior to the start of the financing round) is not reached then there are several ways to proceed:
a. If significant funds are raised but the minimum amount required is not met, an alteration of the business plan may be made to accommodate the reduced amount of funding.
b. If there has been little to no traction with investors then the financing round will come to an end. Keep in mind that if the minimum is not reached considering this situation, investors are not obligated to invest.
What is the difference between debt and equity? Which one should I choose for my financing round?
We are happy to provide support to start-ups regarding what type of financing to offer to investors. Before making any recommendations we would like to better understand the business requirements of your company.
Basically a debt offering has payback implications for the start-up and usually requires a certain amount of collateral before issuance. With a debt offering, the entrepreneur does not have to relinquish any shares or rights to the company as is the case with equity financing. Equity financing involves selling shares of your company to investors. In return investors own a share of your company and therefore share in any profits made.