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About StartUP investing

Date:2017-06-05  Source:Crowd Israel

Understanding Startups and Why You Should Invest With Haifa Startup

Is Investing In a Startup Worthwhile?

 

The rewards of investing in business are realized in the form of the return on your investment, ROI. Your decision to finance a company has a positive effect as evidenced by the creation of jobs, capital formation as well as affording the company an opportunity to further its agenda, actions that work to make a substantial return for you.

 

What Is The Benefit Of Investing With Equity Crowdfunding?

 

Equity crowdfunding refers to the pooling of financing by individual investors, “crowd,” for a particular business project in exchange for shareholding or investment in the company. Venture capitalists or other wealthy angel investors were known as the only individuals to invest in startups. The trend has since changed thanks to crowdfunding platforms such as CrowdIsrael, which have created a space for a larger pool of investors.

 

How Can I Value A Start-Up As An Early Stage Investor?

 

There is no definitive answer to this question. Various factors have to be put into consideration for the investor to make the final judgment call. The determinants that play into the valuation of a company include the market forces and trends within the industry, including the balance (or imbalance) of the money supply and demand as the main factors.

 

As an early stage investor, have older established companies as your benchmark. Startup investing involves analyzing the business on its size and potential for growth within the industry as well as its ability to help you attain your investment targets.

 

Using CrowdIsrael

 

What Are The Requirements Of Joining?

 

The process is simple. Sign up as an accredited investor and set up an account. The account guarantees you access to information on all the privately-held companies on our platform. Ensure you complete the accreditation requirements as per the Terms of Service before making any investments.

 

Why Should I Follow Through With The Accreditation Requirements?

 

The High-risk investments made to the privately-held companies necessitate the need for certain financial conditions to be met as the first step in the investment process. Different countries have several accreditation principles that revolve around a clear stipulation of an individual’s net worth and their minimum income levels as well as proper documentation as evidence of the same.

 

For example, in the Unites States, SEC regulations stipulate that any individual earning $107,000 annually or any amount less, can invest a greater sum of either $2,200 or 5 percent of the lesser of the annual income within the 12-month period.

 

For joint investors, you are allowed to invest an amount less than or equal to $ 107,000 then a 10 percent of net worth or annual income within a 12-month period, whatever the lesser amount.

 

Every country has its set of accreditation regulations. Contact us for more information on your accreditation needs.

 

What Steps Should I Follow To Make An Investment?

 

The website contains details of Haifa Startup companies and deals accessible to accredited financiers. By clicking on the section “Browse companies,” you access the various startup investing choices you can settle on, in line with your investment targets. Information is also provided in the form of analysis, videos, team backgrounds, deal terms, presentations and more. The package also comes with a webinar service, and a contact line that accords you the capacity to set up a meeting or make a call on request. Click on the commit button upon specifying the amount of investment made. Provisions are then completed in a pro-rata as well as a first-come-first-served computation.

 

The necessary documentation is then forwarded to you for signing and approval. A signed certification fashioned to your country’s assets or income’s regulations should accompany the documentation to be sent to us. You should ensure you transact with a licensed professional if this is the requirement in your country as is the case in the United States.

 

CrowdIsrael’s Role on the Platform

 

Deal Flow; under this, we assess Haifa startup businesses on a regular basis. Select those that are promising and meet the set threshold.

 

Contractual Negotiations; agreements at this section happen in two approaches. The first is the arrangements made with the startup businesses through the terms of engagements. Secondly, CrowdIsrael engages the investors and links them to the businesses.

 

Financing; we receive investment amounts settled on and are channeled to the companies in line with the terms of engagement.

 

Networking; the platform organizes for post-investment forums as interaction sessions to best strengthen portfolios.

 

 

 


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