STARTUP INVESTING FOR INVESTORS
Aaretch Investments provide opportunity to investors with pre-vetted early stage startups and private secondary market equities. We give you access, to deals which we have not only vetted, but BELIEVE in. To the extent that we will invest our own capital and time in operations in these ventures.
> > FUNDING PROCESS > >
Review Offering & Funding Documents
After reviewing the Offerings and funding documents, a capital management agreement is inked
Funds in Account until Deal is Done
Once you’ve invested, funds will be held in a designated account and managed by us until a deal is closed.
Deal Closing and Funding Done
You get a signed copy of offering after the deal closure. The selected organisation is now in your Portfolio.
We get Involve to Ensure your success
We help those organisations with our Financial, Marketing & Operations input towards the lane of success.
HOW WE CHOOSE COMPANIES TO INVEST IN
Aaretch Investments reviews startups with a great level of rigor. We not only screen the applicants who have contacted us but also we move around constantly on the look of a right startup and handpick some using specific criteria as – Concept of the Startup, People Behind Startup, evaluation of suitable risk, likelihood of profitability, willingness to give up an equity stake in exchange for capital, etc.—and select only the startups that fit a certain profile. The process looks like as follows :
Companies apply for pitch or we handpick them to pitch. Then we sort out, what we believe are the best startup investment opportunities to present to investors.
Team has the power to either make or break the Product. Team’s capabilities is important to for accessing the potential of moving the company forward.
EVALUATE BUSINESS MODEL
Our due Diligence Team checks the financials, the business model along with their focus and also evaluate the expected time to produce business output.
We very diligently question their every business assumption & check these assumption with respect to the reality of market conditions and industry data.
The evaluated assumptions are modeled into financial parameters to achieve a realistic value of business. Revenues & cost scenarios are tested on different confidence levels.
NEGOTIATING & FINALISING
We finalise the terms and Negotiate with startups to reach at the optimum value to ensure the right value of shares for you to optmize your future Return on Investment.
OUR VALUE ADDITION & RISK HEDGING FOR YOU
We move around the startup circle and handpick, what we believe are the best startup investment opportunities to present to investors.
Our due Diligence Team consists not only of financial wiz but also of entrepreneurs, who know the value of an idea and what it takes to make it a winner.
Every company we evaluate has been thoroughly checked through multiple rounds of due diligence and professional analysis by our experienced team.
We actively participate in enhancing your value by mentoring the Startup on Financial, Marketing & Operations issues increasing growth prospects for company.
Even with due diligence, startup investing is very risky. We are always ready to help in any way to understand if an investment is suitable for you. We are just call, email, skype away.
STARTUP INVESTING IS RISKY. WE EVALUATE, GET INVOLVE & PROTECT YOUR INVESTMENTS
Empowering you to make informed investment decision.
COMMONLY ASKED QUESTIONS
On what factors do Aaretch Investments evaluate the businesses to be right for Investing ?
First and foremost are the company’s business concept, business plan, how it intends to use the funds, its profitability, the experience of the team behind the company, industry, market size, competition, risk to investors and financials to determine whether the business is suitable for Aaretch Investments’ investors.
Will business owners be able to give personal Guarantee ?
Startups are risky investments and Its important that we should no that although business owner’s own money, efforts and career are on the line, there are no guarantees by the business owner to the investor. When you opt to invest in a company, you do so at your own risk.
How is value of a business determined, and also its private equity shares?
Aaretch Investments will look at financials, profitability, assets and the percentage of the business being sold to determine the business and share value. If it is requested by the investor, an external valuation firm can be employed, whose cost will be borne by the investor.
When I invest in a business by purchasing shares, does Aaretch Investments take my funds immediately, or do you want until the target investment is reached?
There are designated account for the funds and they are kept there for the benefit of our customers immediately. We then hold the funds until the funding is over. Aaretch Investments infuses the funds to the business, whenever investments are to be made.
Can invest "more than the maximum" amount specified in a particular business ?
Generally, the advice is to not to put all your eggs in one basket, but in case you still want to invest a greater amount than the maximum shares suggested by Aaretch Investments, you can request us the same and we will assess the risk and provide you with a candid advice and will further assist you with whatever will be your final decision.
How long will I be required to hold my shares ?
The minimum requirement is one year based. If funding is not completed, we will return your funds. The private market is very non-liquid so you should be prepared to hold your investment for a longer period of time. The average exit for a startup is 7 years from inception.
How can I cash out my shares after the minimum time requirement has passed ?
There is currently no market for selling your startup investments on the secondary market. You should plan on holding your investment until the company has an exit. Which means when the company goes to either further liquidate its shares for raising capital for next phase of Growth. If there is an emergency and you need to sell your shares please notify us and we will do everything we can to see if there is another buyer available.
How often will the company where I have invested will give updates on the Progress ?
We have requirement of quarterly updation from the companies that we invest in. We pass on those updates to our investors.