EQUITY

How does Equity-based Crowdfunding work on HighCastle?

Equity Crowdfunding is funding a company by selling shares to crowd investors in exchange for partial ownership.

How do I know if the value of a company is correct?

Estimating the valuation of a private company can be hard, and there are no simple ways to do this. Things to keep in mind is what you think about the future potential of a company and judge if the current valuation of the company lives up to that potential. HighCastle does not judge or advise on valuations of companies on the platform.

How does the payment process work?

The payment of the shares happen outside HighCastle, where you will be contacted by the entrepreneur or their legal representatives with the share agreement as well as payment details in order to complete the transaction.

How can I sell my shares at a later date?

Once you own the shares you can sell them on any secondary market that the company is listed on, or when the company enters a stock market. You can also sell your shares as part of the company being acquired by a third party. For details about how you can sell your shares, please consult the entrepreneur.

What happens if a campaign is oversubscribed?

When a campaign is overfunded, there are several ways that the funding round can be completed. Depending on how the entrepreneur wishes to continue, an overfunding can involve them choosing which investors to complete the round with, or offering a lower amount of shares for the investments made.

Who can invest in companies?

Anyone living outside the US can invest in companies on HighCastle . Due to legislation in the US we are not currently allowing US investors to participate in Equity Crowdfunding on HighCastle .
We offer entrepreneurs the option of approving or declining potential investors giving them the right to choose who they want – and do not want – to become part-owners in their businesses.

If funding does not succeed do investors pay anything?

No, if the funding is not successful, then the investor does not pay anything.

Are there risks involved in investing in Equity Crowdfunding campaigns?

Investing in any business can be rewarding, particularly if you can identify and invest in an early-stage startup before it’s well known and profits start to grow. That said, as with all other types of equity investments, companies can fail or not deliver an investor return. The high risk nature and limited liquidity of investing equity in private companies needs to be carefully considered before making a decision as there is a very real possibility that you might lose your money invested. We try to ensure that all campaigns have a business plan and financial projections to enable you to make an informed choice about your investment.

What can I do to maximise my investment?

Get involved beyond your transfer of funds to the entrepreneur! Perhaps you have a network that could help the idea succeed? Make some introductions. Offer your input as a member of the board, an advisor or pitch in if you see they need help with marketing or other aspects of the business. Crowdfunding is about more than just raising funds…it is about making connections and helping entrepreneurs grow.

Will I be notified when a campaign closes?

Yes. You will be contacted by the Entrepreneur once the campaign successfully closes and will receive a notification email from HighCastle .

How does HighCastle make money?

HighCastle makes money in the same way its investors make money – from the performance of the startup investments.

How many investors can be a part of a single startup deal?

A maximum of 10 investors can be a part of a single startup deal. However, the exact number of investors will depend on the specific deal, startup location and relevant international regulations. HighCastle will have the final say in the total number of investors allowed per deal and will be indicated as part of the details of a deal

How is legal documentation done on HighCastle?

HighCastle wants its members to be able to complete all the legal documentation online, to bring ease and comfort to the investment process. Once you decide to invest, you will be presented with a set of legal documents that you will sign. Please review these documents and in case of any queries please contact us – we’ll be happy to explain them to you.
HighCastle wants its members to be able to complete all the legal documentation online, to bring ease and comfort to the investment process. Once you decide to invest, you will be presented with a set of legal documents that you will sign. Please review these documents and in case of any queries please contact us – we’ll be happy to explain them to you.

What will happen to my investment if I invest and HighCastle shuts down?

Even in the untoward event that HighCastle shuts down, your investment will remain safe. A fund manager appointed by the investors can manage the fund that will be created by HighCastle for the startup investment. HighCastle will itself try and put in place a replacement manager. In the event HighCastle is unable to find a replacement, the investors can collectively appoint one as well.

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