PLEASE READ THIS INFORMATION CAREFULLY BEFORE INVESTINGFellow Funders requests you to read this document carefully in compliance with Article 19 of the new REGULATION (EU) 2020/1503 OF THE EUROPEAN PARLIAMENT AND THE COUNCIL of 7 October 2020 on European providers of equity financing services for companies.
Fellow Funders wants you to consider the risks involved in investing in the capital of companies. We request that you read the following information carefully before investing:
The activities of Fellow Funders and the information offered through its various channels (website, blog, social networks or platform) should not be understood as recommendations for investments, financial advice or any other kind in this regard. Each investor must make their own independent judgements and their own decisions in relation to their investment activity when using the platform.
To reduce the risks faced by our investors, all projects published on the Fellow Funders PSFP S.A.U. Participatory Financing Platform (PSFP) have to pass a prior thorough risk analysis and assessment of the project. This analysis will have three major phases: Search for/Reception of Projects, Study and Assessment of the viability of the business, and Study and Assessment of the Investment proposal. For more information, click the following link.
The yield and value of your investment will depend on the success of the company in which you invest. Therefore, if it does not go well, you may not get the return you expected and even, in a worst case scenario, lose all or part of the money you invest.
Your investment is not guaranteed. This means that nobody, neither Fellow Funders nor the promoters of the Company nor any guarantee fund guarantees the recovery of your investment or a minimum return.
The estimated returns on investments are based on the average of the different forecast scenarios.
Building a diversified portfolio is recommended to reduce the risk of investments. If you wish to know how to build a diversified portfolio click here.
Neither Fellow Funders, nor anyone, can prevent managers of a company who published a project from committing fraud in it as, unfortunately, it happens occasionally in all economic sectors. Any investor acquiring a shareholding or shares in a company must assume this risk.
Liquidity is the ease of selling the shareholding/shares in a company after its acquisition. The acquisition of shareholdings/shares in SMEs or newly created companies through Fellow Funders contains limitations on transferability, and these are unlikely to be listed on the secondary Securities market such as the MAB or the Spanish Stock Exchange.
Without a public market available in which to find a buyer for shareholdings, it can be more difficult to sell for an effective return. Investments made through Fellow Funders should be considered a medium-term investment, without liquidity and should always be made using capital that will not be needed in the short term.
If you need to seek liquidity for any reason, Fellow Funders will help you place these shareholdings/shares for sale in the following order: investors, promoter and finally new investors.
Dividends are payments made by a company to its shareholders as a result of the profits it obtains. Most companies published on Fellow Funders are start-ups or companies in their early stages, which means you are unlikely to see a return on your investment during the first years of the investment.
Profits are often reinvested back into the business to boost growth and create value for shareholders. Companies only distribute dividends when there is a distributable profit and this is agreed by the partners at the Annual Meeting.
Any investment made in companies through Fellow Funders may be subject to future dilution. Dilution of an investment occurs when a company issues new shareholdings or shares via a capital increase, in which certain existing shareholders may decide not to take part. As a result, the percentage of the company's share capital of said partners/shareholders is reduced proportionally to the number of new shareholdings/shares issued.
When creating an investment portfolio, we recommend investors maintain a diversified portfolio, therefore reducing the risks. Diversifying means distributing an amount of money among several investments. For example, if you are a non-professional investor and you plan to allocate €5,000 per year for this type of project, it is usually recommended to diversify investments into five projects of €1,000 each. If you would like to know how to build a diversified portfolio click here.
In the following links you can see:
In the event that an activity is terminated, Fellow Funders undertakes to finalise the ongoing projects in an orderly manner for the benefit of investors and promoters. Additionally, as stated in the investment process, Fellow Funders will never have access to the money invested, which will always be in a secure account that can only be used by the Promoter when the process ends. Therefore, when a activity is terminated, if this implies that a project is not finalised, a mechanism has been established by which LemonWay will issue a refund order to investors for all the amounts invested.
If this mechanism were not activated, the money would still be secured and investors could claim the refund from LemonWay
Remember to follow these recommendations before investing: