Scaleups are notoriously lucrative for investors, but only a select few - namely big V.C funds - can get in once they've started growing quickly. Several french people are looking to diversify their investment portfolio, however their options are limited to gambling on early stage ventures, with a high failure rate. Buy purchasing shares directly from the employees within the best french startups, FairShares allows anyone to invest in a new risk-averse asset class, often more profitable than traditional stocks - all from $5000.
How do I invest on FairShares?
FairShares provides access to Late-Stage companies via single company investment offerings. In order to invest in FairShares' offerings through a FairShares fund, you will need to be an Accredited Investor. Simply sign up and verify your accredited investor status.
Unlike a stock market, shares aren't always available. Review the offering details, make a reservation and complete the investment paperwork. We won't require funds right away.
What's the minimum investment size? The minimum investment required to access FairShares stock offers in the best start-ups is around 5 000€ to 10 000€ per deal.
Are there investment fees?
1/ When you invest through FairShares, we take a 2-5% entry fee. There is no exit fees.
2/ Carried interest
There is a carried interest from 10 to 20%
How are the investments structured?
We set up a Special Purpose Vehicle (SPV) to gather the funds for each deal.
Are investment fees negotiable? If you invest above 500k€ in a deal, fees could be decreasing.
I just joined and I don't see any companies to invest in. Why is this? Due to regulatory reasons, you won't be able to see any offerings that were listed before you joined.
What am I purchasing when I invest?
When you make a typical investment on FairShares, you are purchasing ownership in a FairShares SPV (Special Purpose Vehicle) that owns the shares of one company (single-company funds). You will not own the stock in the company directly.
For example, if you invest €1,000 in an SPV that raises €100,000 to invest in a target start-up, the SPV will own the shares of the startup, and you will own 1% of the SPV.
Investors join this SPV fund as Limited Partners. This fund will purchase and own a specific company's shares. Shares owned by the fund will be fully vested stock and not options. FairShares will act as the Managing Member of this fund, and the fund will be a single new entrant on the company's cap table
FairShares also offers direct share acquisitions, where available, for larger investment sizes.
How do you price the shares?
We use the last financing round of the company as a benchmark for the share price. Other factors that determine the price are publicly available information, investor demand, pricing history from past secondary transactions, etc.
Typically, FairShares works with the seller to determine price per share for each investment opportunity
How will I receive my profits ?
When the startup you've invested in through an SPV is acquired or goes public, the SPV is liquidated and profits are immediately redistributed pro-rata among its shareholders.
In addition, it is also possible to conduct share repurchase and sale transactions with all members of the SPV. These transactions are exclusively internal to the SPV and are possible throughout the lifetime of the SPV (which may incur exceptional costs).
How can you guarantee that I'll receive my profits?
SPVs are purposefully made for this type of operation. SPV shareholders own a chunk of its legal entity and as such, SPV representatives have no legal recourse to retain its profits.
Do you guarantee profits ?
FairShares is a marketplace offering exceptional investment capabilities in startups. Investing in a startup presents a risk of losing capital, and the investors assume 100% of the risk. We shall not be held responsible for the failure of a startup.