During last weeks, at Fellow Funders we have tried to help you feeling comfortable with the alternative financing world, it means, the investor’s support to startups projects. We have mainly limited to the analysis of Equity Crowdfunding and financing through Participatory Financing Platforms (PFPs)
Summary of main concepts
We would like to make a summary of the concepts we were commented on, in order to sound familiar to you. We have talked about:
- Partners Deal. Focusing especially on drag-along and tag-along rights.
- Scoring. Our rigorous assessment method which allows us to select the best projects.
- Pre-money valuation of the company. IT has to respond to some objective criteria and to have some doses of conservatism.
- Objective valuation report. If we want the investor to be with us, we should give our honest opinion about the companies.
- Investment room. In this online room, the startup’s investors and promoters keep in touch, and we publish all the documents in here.
- Different types of investors. Accredited and non-accredited, apart from the coomitment of supervising the requirements.
- How to make your investment profitable (Exit, dividends…)
- Tax benefits of the investment in startups.
We have been selecting some of the ideas that we have chosen as our identity marks:
- “We prefere coackroaches than unicorns”.
- “We believe that the time has come to discriminate good projects from bad ones and that NOT EVERYTHING is fundable.”
- “A correct pre-money valuation of the company is necessary, since it makes it possible for the investor to pay a fair price and the promoters can apply for new rounds of financing in the future if they meet the milestones established in advance.”
At Fellow Funders, we keep believing that Equity Crowdfunding platforms are in charge of generating enough added value to investors and developers to justify the fees we charge.
From our point of view, this added value should not come exclusively from our concept of “marketplace” but the use of professional tools (scoring, objetive valuation, monitoring of investments…) that generate quantifiable and objetive benefits por every participant in the entrepreneurship ecosystem.
At Fellow Funders, we feel committed to the development of these professional tools and we use them in all our processes. This is not only a differential factor against competence, but a minimum requirement we have to comply with if we wish that our operation, confidence, trasnparency, safety and long-term monitoring stardards are more than simple words. We wante these standards to become in effective commitments with investors and promoters.
We encourage you to visit the web of Fellow Funders and to read our commitment. You can see we are fulfilling it completely. We hope all our competitors can and wich to make a transparency and commitment exercise like ours.
We keep thinking that Equity Crowfunding Investment is an interesnting product but also keeping in mind the need of diversify your portfolio and the risk assumed.
CRO Fellow Funders