Advantages of Equity Investments for Business Angels

Equity investments create many new opportunities and advantages - for startups and investors alike. Investors have the opportunity to invest on the Companisto platform like a professional business angel.

Equity is the means of choice for professional investors when investing in startups. Both business angels and venture capitalists rely on this form of corporate investment for financing.

Companisto' equity investment digitizes this process for the first time. A-Shares (Angel investment) and B-Shares (Companist investment) are offered as forms of investment. In both cases, investments are only possible in whole shares.

A-Shares are only available for investments of EUR 10,000 or more and then always in whole share steps. B-Shares, on the other hand, are already available for the price of a single share. The price of a share depends on the amount of the share capital and the company valuation and can vary from company to company.

We illustrate the advantages of equity investments through Companisto for business angels in this article.

Online investment in equity

The Companisto platform enables online investment in equity. A notarized power of attorney is only required once to allow investors to invest online in startups and growth companies again in the future. Fast, simple and unbureaucratic.

Unlimited investment amount

The equity investment enables companies to conduct financing rounds without a funding limit. Investors are no longer tied to the investment amount of EUR 10,000 per person but can invest in a company with the amount of their choice.

Online management of investments

All investments in a portfolio can be managed simply and clearly via Companisto. There are no deposit opening fees or administration fees.

Companisto Angel Club

The Companisto Angel Club is a special area for financially strong investors and business angels. This group of people deals strategically with the topic of investment and seeks professional access to equity investments in interesting startups and growth companies. Members of the Companisto Angel Club are given the opportunity to make equity investments in companies in closed Angel Club financing rounds (comparable to private placements) at preferential conditions online.

Companisto Angel Room

In the newly created Angel Room on the Companisto website, professional investors can exchange information with each other and build up a joint network. It is an exclusive area available only to members of the Companisto Angel Club.

Profit and exit participation

Investors earn a return if the company makes a profit in the future or in the event of a sale of the company, a so-called exit.

INVEST grant

Investments in equity investments of EUR 10,000 or more in eligible companies receive a 20 percent subsidy through the state INVEST grant. Investors can thus reduce the risk of their investment. If the company is sold, the investor can receive an exit grant of 25 percent of the profit in the form of a tax refund as part of the INVEST grant program.

Comprehensive investment information

The investor not only receives an investment information sheet (VIB), but also an even more detailed asset investment prospectus. It lists all relevant details of the investment and the associated risks.

Strong legal position

Both A-Share and B-Share investors receive full ownership rights through the equity investment and benefit from the strong legal position of being a shareholder. A-Share investors are even entered in the commercial register by name as shareholders of the company, while B-Share investors are jointly represented by a trustee.

Co-determination rights as shareholders

Investors can personally shape the future of the company through their equity investment. Investors are given the right to vote on shareholder resolutions and can thus influence important decisions of the company. The votes of the investors are pooled to simplify the process for the startup.

Investing in the growth phase

Equity investments are suitable for financing companies in the growth phase with a capital need of EUR 3,000,000 or more. These companies are already established and are already generating sales.

Cooperation with state venture capitalists

Equity participations are compatible for co-financing with state venture capital providers as well as state support programs. In co-financing, the investors' risk is spread across several parties because multiple players subject the company to due diligence.

Promoting groundbreaking innovation

Equity investment allows for greater support of startups. This actively promotes groundbreaking innovations and the entrepreneurial spirit of young entrepreneurs.

Which point convinces you the most? Write us a comment!