As a response to your requests, , in this newsletter we would like to make a summary on what Equity Crowdfunding is. Equity Crowdfunding is the way in which individuals or companies can acquire shares or holdings of the chosen company, through an increase in capital. These companies are startups with a strong technological or disruptive component and significant growth potential. This whole process is regulated under Law 5/2015 on the Promotion of Business Financing.
The acquisition is made transparently through the Fellow Funders technology platform. The investor’s money is deposited in an unavailable account in his or her name until the time of the actual expansion. Fellow Funders does not have access to these funds at any time, nor can it dispose of them.
Investors profits may be direct (distribution of dividends) or indirect (capital gains from the acquisition of the company by a third party). It should be noted that most companies financed by Equity Corwdfunding are high-risk investments not suitable for investors seeking a secure return. The risk assumed is in line with the expected return. Therefore, it is advisable to diversify the portfolio into different investments.
All the obligations of the company with its new shareholders and the rights of the minority shareholders (distribution of dividends, sale of their shares in case the main shareholder leaves the company, right of accompaniment…) are included in the Partners’ Agreement. It is a document that can be consulted by the investors of Fellow Funders.
If you want to know more, you will find more information here.