PLEASE READ THIS INFORMATION CAREFULLY BEFORE INVESTINGFellow Funders requests that you read this document carefully, in compliance with Article 61.3 of the new Law 5/2015 on the promotion of business financing
Investment activities in unlisted companies carry a series of risks such as lack of liquidity, lack of income to return capital, risk of shareholding in the company being diluted, non-transferability of shareholdings and risk of losing the money invested. FELLOW FUNDERS is therefore only intended for people with sufficient knowledge to understand the risks underlying investments in these companies.
Likewise, Fellow Funders does not have the status of an investment services company nor a credit institution and it is not part of any investment guarantee fund or deposit guarantee fund.
The projects published on FELLOW FUNDERS are investments in unlisted companies whose profits are uncertain and impossible to predict and therefore implies that any investment made can be lost in full or in part. Therefore, the recommendation is to invest only an amount of money that you can afford to lose
The projects published on FELLOW FUNDERS are investments in companies based on future expectations expressed by the promoters, which do not have to be met so the expected monetary return on the investment may never occur or may differ from that anticipated.
Likewise, past returns do not guarantee future returns under any circumstances.
Liquidity is the ease of selling the shareholding/shares in a company after its acquisition. Shares acquired in SMEs or newly created companies through Fellow Funders are not easily transferrable, and are unlikely to be listed in the future on a secondary stock 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.
Investors are warned that any investment made through the platform may be subject to possible future dilution. Dilution occurs when a company creates new shares/shareholdings by means of a new capital increase, and partners who do not subscribe to the new shares/shareholdings issued will see their shareholding in the company reduce in proportion to the capital increase, leading to a reduced percentage held in the capital.
Investors are warned that the companies in which they invest only distribute dividends when there are distributable profits and the partners so agree; this implies a risk that no dividends will ever be distributed.
In general, the articles of association in companies in which the investor is going to invest will establish limitations on free transferability, such as the other partners having preferential acquisition rights. Investor's must study and understand the limitations established in the aforementioned articles of association.
Minority investors in a company will generally only be able to take part in the General Meetings, so they will usually not be able to influence the company’s management.
Participatory financing projects published on FELLOW FUNDERS are not authorised or monitored by the National Securities Market Commission (CNMV) or the Bank of Spain, therefore the information provided by the promoters on the projects has not been reviewed by them, nor, in the case of issuing securities, does it constitute an informative brochure approved by the National Securities Market Commission.
Finally, capital invested is not guaranteed by the investment guarantee fund or the deposit guarantee fund.
The fees applicable for Fellow Funders services, unless otherwise expressly indicated for any service, will be billed at the time of being contracted.
For investors to be able to invest in the projects published by Fellow Funders they must register on the website and accept the Investors’ terms and conditions, which will be provided during the registration process.