Then get real! Though it’s only five years old, Financial crowdfunding is one of the fastest-growing investment markets in the world.
The model is as simple as that:
This beautifully simple way of allowing small investors to take shares or to loan money to non-listed companies moved over 5 billion euros in Europe in 2015. The World Bank estimated that it would bring over 90 billion dollars to companies all over the world by 2025. Fact is, it actually generated nearly 150 billion in 2015 alone.
So... yes, it’s the Next Big Thing, and we love it.
Yes. But just by issuing a shareholder’s agreement or a loan contract in return for the money, it becomes a brand new financial instrument. Magic.
Capital Cell offers you the possibility of buying shares in a specific company. From then on it works pretty much like investing in the Stock Market: the value of your investment will go up or down, and you will share in the company's future profits.
You can put your money directly in one particular project, whether because you think it looks enormously profitable or just because you love what they’re trying to do and you would like to see it done.
It is a very simple system, allowing you to invest from the comfort of your own sofa via a user-friendly, simplified e-commerce interface, and with every guarantee of transparency and safety.
We urge you not to take the following as an investment tip... the kind of deals you’ll find here will typically offer you the possibility of multiplying your money (x2, x4 or x7 are not unusual estimates) in roughly two to five years. Again, that’s not a rule AT ALL and the risks of that not happening and of losing part of your investment are rather high.
We’ll help you by providing you with all the paperwork you’ll ever need, business plan analysis and validation, editing and publishing, a campaign plan, advertising tools and tips and access to a network of private investors.
If your business plan is well-defined and your financial needs are clear, just get in touch with us and we’ll guide you through every step of the way.
We’ll make sure your campaign brings you not only money but also notoriety, branding, market validation, followers, customers and a rich stakeholder ecosystem.
Basically Capital Cell charges a sucess fee of 5-7% (depending on the amount of capital raised).
We also charge a fee of 250€ upon publishing the project, but all the initial work (editing, publishing, analysis, consulting, contracts, etc...) is free of charge.
Financing a company is a rather serious undertaking, and building a financing round requires that the funds do actually exist. That’s why we ask you to be extremely serious about committing to an investment, but the funds will not be transferred to the company until the round is complete.
We want to make sure that a company will actually have the promised funds, as well as protecting the investor by making sure no company will have access to the funds before the financing round is complete and all the legal paperwork has been duly filled.
An exception: investments above 8000 euros don’t have to be paid in full. A 10% deposit is required upon signing the investor agreement, and the rest of the funds can be paid up to 5 days after the project is successfully closed.
Spanish legislation is rather complicated, as you may have heard and Capital Cell has done a thorough job of devising a system that complies with all regulations in existence: Money Laundering Laws, Capital Laws, Privacy Laws, etc...
The result is a solid system that offers every legal guarantee to both investors and companies. Capital Cell will supply all necessary paperwork, contracts and consulting, and we’ll be happy to explain the whole thing to you. Just get in touch with us and ask away.
Before publishing a project we carry on a thorough background check on the companies, its associates and its business claims. If we have the slightest doubt about the project or its promoters, it will not be published.
Your investment will be kept under our custody until the financing round is complete and the entrepreneur has registered the operation before a notary; he will never have access to the funds before that.
The contract between the investor and the entrepreneur is a legal document that can be brought before a court, and should the company breach its terms it could face very serious legal action. The Crowdinvestor is every bit as protected as a Stock Exchange investor.
No. We also love social impact projects, and small projects that are seeking funds from friends and family, and projects with a low potential ROI but with cool implications. It’s really up to you to decide what kind of return you want from your money. We don’t think that becoming filthy rich is the only thing that matters in life, and perhaps you don’t either.
Yes, but in Spanish.
Capital Cell charges a success fee to the entrepreneurs, between 5 and 7%. It’s not a lot really, is it?
We’d love to do it for free but everybody has to make a living :)
Any citizen or company from any country not included in the Spanish government’s tax haven list.
Easy question! The answer is “we don’t”.
We carefully filter projects and make sure we only publish viable projects after a serious background check, but there’s no way we can guarantee they’re going to work. The best-looking business in the world can fail miserably (hello MySpace), and we can’t really tell how your investment will do.
We will also offer you our advisor’s opinions and evaluations of every project. We work with highly respected, experienced business specialists whose advice we take very seriously, but please remember that it’s nothing more than advice.
So we do our best to make sure our published projects are safe, viable and potentially profitable, but we can’t tell the future. If we were able to guess which crazy ideas will eventually become the best-selling product of the decade, we ourselves would be filthy stinking rich already.
Capital Cell checks every company and every single one of its associates in public registries, credit rating lists, as well as Social Security and Fiscal databases. Also, we conduct private interviews with every entrepreneur – as a matter of fact, we spend quite a lot of time with them. No crook will ever publish a project on Capital Cell. Generally speaking, it is very difficult for dishonest people to use crowdfunding for their foul deeds, and as long as bank robbery or politics are a much better option people are not likely to use crowdfunding to steal money.
Once you invest, the company will have an obligation to inform you periodically of their evolution and their business status. You’ll be able to attend general assemblies, check the company’s records, accounts, etc.
Of course once the round is complete Capital Cell will no longer be involved in your relationship with the company you invested in, but don’t hesitate to come to us if you think your company is defaulting you. We will assist you in any way we can.
Participations are basically shares in a Spanish S.L., ergo, a deed of property for a part of the company. For clarity's sake, we often refer to them as “shares”; it’s cleaner and easier to understand.
The type of shares we use as a standard are “preferred dividend, non-voting”. That means:
As for the value of your shares, since they will not be indexed or publicly floated, their value will be whatever someone pays you for them when you sell them.
Please do not take this as a precise and binding explanation of how Participations work. For more information please refer to the Spanish Ley de Sociedades de Capital - or ask us, if you’re not partial to reading legal gibberish in Spanish.
They can be freely bought and sold, as long as you offer the company a preferred buying option. All rules governing this are specified in the Investor Agreement, as well as in the general Spanish Societary Law.
More or less. Our standard Investor Agreement may include a clause that would give you a guaranteed price for your Participations but deny you the right to refuse the operation.
Please do check either the Project information or your Investor Agreement for more details on this clause.
You actually can, up to 7 days after your investment. Just ask for your money back and it will be returned to you, no questions asked. After the 7 day period you will have to negotiate with the company and see if they can release you from your agreement.
And of course, if you ever consider that the entrepreneurs are defaulting you somehow, or that the project is not developing according to the information they gave you, you can seek legal action.
That’s bad news. Honestly, there’s very little chance you’ll ever get your money back.
We would suggest you seek legal advice to study your particular case.
Most investor agreements would specify future salaries to prevent that. Check your particular case before investing.
Besides, you’ll be able to check the company’s accounts and see if their salary policies are in accordance with the market trends. If they’re too far off, they’re actually breaking the law – you can report that to the Treasury.
Not necessarily. You can pay a deposit and complete your investment at some further point. We would usually ask for a 10% deposit, but particular conditions can be agreed for every particular investor.
You can invest as little or as much as you want. Every project will set its own minimum investment, which can be as low as 20 euros.
Once you’re registered just go to “Start a project” and complete the brief questionnaire you’ll find there. Essentially there’s 3 things we need before we study a project:
And we will take care of the rest. We’ll guide you through every step of the process and make sure you publish a project only if you have a chance of success.
Any company incorporated in the European Union.
Nah. If you’ve put any work behind your idea, then you’re way ahead of anyone else – they don’t have your experience or know-how, and that’s what counts.
Anyway, you’re free to publish as little or as much information as you want. It should encourage people to invest money, so don’t be shy with the main facts. You probably don’t need to publish detailed plans to your awesome invention, but don’t keep too much to yourself.
Ok, let’s make this clear: you have to. Capital Cell - or any other crowdfunding site - does not make money magically appear from the Internet: it’s a tool to super-amplify and simplify your fundraising efforts. Go looking for money wherever it can be found, and use this website to maximize your efforts.
If your campaign is successful, you’ll have your money within 2-3 months.
Not here. We specialise in projects planning on returning their investors more money than they put in.
If you’re looking for non-profit crowdfunding, there’s many sites who’ll do it a lot better than us. You can ask us if you want, it’s a friendly industry and we know & love all our competitors..
Well... why not, send it over. Chances are we’ll turn it back with some constructive criticism, but we may see a way to turn your idea into an investable business.
Yes you can. Lots of people are already doing it!
We accept anything from small self-employment projects to mega-multibillion deals. Just go ahead.
Not necessarily. You can specify in your investor agreements a future buyout clause, allowing you to buy back small participations for a fair price, whether they want to sell them or not. You can define what “fair price” means, but remember to make sure your offer is actually fair. You don’t want small investors to feel cheated!
Having said that, you do have complete ownership of your business. Do as you please!
If you feel like it, you can include a buyback clause, allowing small investors to get their money back in the future.
That is amazingly risky for your company, so make sure you only do that one if your particular case is very, very particular.
The process works according to the applicable Societary law, which we recommend you to be familiar with. In short, you can sell your participations freely as long as you give the company a preferred buying option.
Besides the standard buying and selling regulations, there are two key clauses governing the future transmission of participations:
We will actively communicate your project to professional investors, business angels, equity funds, and we will assist you in advertising your investment opportunity.
We can also help you in finding alternative financing sources, such as public investment, strategic alliances, and so on. If we can, we will link you with anyone we think may be interested in collaborating with you at any level.
Absolutely. You can publish any contact information you want, and we encourage investor engagement and free communication. It’s your project and you’re your best salesman.
It’s up to you to get back to your potential investors with any information, follow-up actions or advertising techniques you want.
You can, but make sure you don’t break societary regulations or breach other investor’s agreements in doing so. Proper legal counseling is advised.