Return and risk from investments in startups

Startup investments are venture capital investments. Investments in startups aim for very high returns. The aim of every investment is to multiply the investment amount, i.e. to achieve a return of several hundred percent. At the same time, there is a high risk of total loss for every investment.

The return is achieved by holding a stake in a startup, such as a share or a GmbH share or a security paper. This share is then sold at a multiple price when the startup is sold or the startup goes public.

Successful investors spread their investments over as many startups as possible. Through diversification you can minimize your risk and unsuccessful investments can be compensated by high returns of the successful ones.

In order to be able to better assess an investment and to make your selection easier, we show important key figures for each investment:

Contentpepper
Targeted time to exit
3 years
Funding Goal
€ 750,000
Minimum investment
€ 250
Company Valuation
€ 8,700,000
Mediator
Companisto Wertpapier GmbH
Co-Investors
Portfolio investors
Committed
111% € 833,810
Companists:
201
111% Complete
Companisto Class
A B C D E

Targeted return

The target return shows you which return our experts are aiming for with this investment.

You see the desired return both as total return and converted to a value per year.

Please note that this is the target pre-tax return, i.e. the return we intend to achieve with the investment. It is not guaranteed, but can also be lower and there can still be a total failure.

Targeted time to exit

This is the period in which our experts aim to sell the startup (exit).

This period is important because when you sell the startup, your return is achieved. The above mentioned "target return" refers to the return at that point in time.

This period is not guaranteed, but can be shorter or longer.

Companisto class

Furthermore, we classify every investment opportunity according to its Companisto class. The Companisto class is a standardized process developed by us, with which we offer investors the opportunity to assess investments at a glance and to compare them with each other.

The Companisto class measures the relative risk based on important criteria that are of great importance when making an investment decision in the venture capital area.

A higher risk does not necessarily mean that the investment is less attractive. It just means that the probability of a total failure is higher. Usually, however, a higher risk is accompanied by a higher profit opportunity. Basically, the higher the risk, the higher the potential returns.

As an investor, you can decide for yourself which opportunities / risks you want to take.

Criteria

Weighting

Test criteria

Liquidity

2

free funds, burn-rate, reach, other financing sources

Profitability

2

current status, projection

Revenue

2

current status, projection, growth

Management

1

qualification, completeness, complementarity, company share of the management

Intellectual Property (IP)

1

patent situation, competitive edge

Customers

1

quantity, structure

Shareholder

1

cap table, capacity for follow-up financing

A higher risk does not necessarily mean that the investment is less attractive. It just means that the probability of a total loss is higher. However, a higher risk usually goes hand in hand with a higher chance of profit. In principle, the higher the risk, the higher the possible returns.

As an investor, you can decide for yourself what risk/reward ratio you want to take.

Frequently asked questions about startup investments

Should a company in which you are involved generate profits, the shareholders or shareholders decide whether the profits will be distributed. You have the right to vote as an investor in this decision. If a distribution of profits is decided, the profits will be paid to you as dividends. However, it is common for start-ups and growth companies to reinvest earnings or not distribute profits in order to finance further growth and to achieve an increase in company value. The increase in company value and a subsequent sale of the startup are usually more lucrative for investors than paying annual dividends.
The investments are equity investments, such as shares or GmbH shares or profit participation certificates. These do not have a term and cannot be terminated, but the aim is to sell the equity participation as part of a company sale or IPO and thus achieve a return.
Investments on Companisto are free of charge. Companisto only benefits when a Companist makes a profit with his participation: "We win if you win!". Companisto receives from the profits from the participation a success-based profit participation (“carry fee”) in the amount of 15% of the amounts distributed to the Companists. This means that when a startup is sold or pays profits to the Companists, Companisto participates in it, thereby underlining its own ambitions to place successful companies on the platform. There are no running costs.
You can sell your holdings, but there is no regulated market. If you want to sell your stake, you can, but you have to find a buyer yourself.
Your risk of loss is limited to your investment amount. There is no obligation to make additional payments.
For German private individuals, capital gains tax (25 percent), solidarity surcharge (5.5 percent on capital gains tax) and, if applicable, church tax (8 percent or 9 percent on capital gains tax, depending on the federal state) is payable. This results in a maximum total tax burden of 26.38 percent.

Please note

The acquisition of the offered securities and investments is associated with considerable risks and can lead to the complete loss of the invested assets. The expected yield is not guaranteed and may be lower. Whether it is a security or an asset investment can be seen in the description of the investment opportunity.
Contact Us
If you have any questions about investing on Companisto, please contact our service team:


Toll-free phone number for investors calling from Germany:
0800 - 100 267 0

Companisto investors hotline:
+49(0)30 - 346 491 493

We are available Monday through Friday between 9 a.m. – 6 p.m.

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