Investing in innovative SMEs

I. Registration Process


1. Free registration

Enter your e-mail address, accept the risks and validate your e-mail address in order to have access to the complete presentation of the projects on the platform.

Sign-up

2. Complete your profile and access the detailed offers of the platform

Fill out the adequacy test and upload your ID, proof of residence less than 3 months and a RIB. Sign the investment advice agreement electronically and, after validation of your profile (within 48 hours), you will have access to all information concerning the projects.

3. Invest online

Enter the number of shares or bonds you wish to acquire and electronically sign the subscription form together with the other documents specific to each transaction. You can pay your investment by bank transfer or check.

4. Follow your investment on your profile

You will be able to follow the evolution of your investments in your profile as well as the news of the companies in which you will have invested. We will also keep you up-to-date on the latest news about each company.

II. Stages of a PRE-IPO Fund raising


1. Selection of companies

First and foremost, Invest Securities is committed to passing the candidate applications through a rigorous selection process. Each of the companies presented is the result of a decision of the selection committee made up of independent experts.

2. structuring of the operation

The assembly of the pre-IPO operations is one of the activities of Invest Securities. A team of corporate finance and a team of financial analysts are dedicated to the assembly of these operations and negotiate the terms and conditions of operations in order to guarantee the maximum protection of investors.

3. Online Collection of the funds

Once the operation is up, the project is posted on the platform for a period of 2 to 3 months depending on the size of the fundraising. During this period you can invest online. The documents relating to the company (Business Plan, Investor Presentation, Teaser...) are made available to you according to your progress in the registration. You can request access to the file to speak directly with our teams.

It should be noted that the success of the operation can occur before the pre-established date. As we respect the principle of first-come, first-served, we recommend that you invest after having read all the documentation available to you. The funds are subsequently frozen in the account of a holding company comprising all the shareholders and are released when the target company increases its share capital if the operation is successful. If the capitalization threshold is not reached, the funds you have invested will be  directly refund into your account at no cost to you.

4. Monitoring of investments

Once your investment is made and the transaction closed, you become a shareholder or bondholder of the company. You will then have access to the details of your investment in your personal space and we will keep you informed of the latest news of the companies in which you will have invested.

III. Why invest with PRE-IPO?


1. Invest at discount

The discount on your investment is defined according to the following 4 parameters:

  • The time between the closing of the transaction and the IPO: the longer the delay, the higher the discount
  • Fundraising size: the higher the amounts raised, the lower the discount
  • The limited liquidity of this type of transaction
  • The position of minority in these rounds of meetings

The discount on these investments is between 20% and 50%. The gain for the investor is thus estimated between 30% and 100%.

2. Liquidity horizon / visible output

The essential criterion for selecting PRE-IPO files is the eligibility of the company for an IPO in the short or medium term. This eligibility for an IPO in the short or medium term offers a visible liquidity horizon. Nevertheless, we do not guarantee the IPO in the very short term. On the other hand, we do not exclude other forms of exit such as a buyout by a competitor or a takeover by an investment fund (LBO, LMBO, MBO, reduction of capital, buyout by a majority). PRE-IPO may set up a two-year appointment clause with a three-year performance.

Invest Securities may organize the release based on market conditions in order to maximize the investor's performance and to await the best terms of listing or sale for the entrepreneur.

3. Mature Companies

The selected companies have gone beyond the most risky stages of their development and have already proved their concept technically or commercially. The risk of development is therefore to be minimized. These companies therefore need funds to accelerate their growth and establish their places in their respective markets.

For example, in the case of a biotechnology company, we will only select companies testing their medicines on humans, that is, in the clinical phase. Ideally we will select companies with first efficiency results. These first efficacy results (phase 2a) are carried out on a population of patients.

4. Exclusivity

Pre-IPO operations were previously reserved for historical shareholders and large clients of investment banks. PRE-IPO wants to democratize this type of operation and gives you access to it. It is a unique opportunity to be able to invest in less risky stages of development of these companies alongside traditional investors such as family offices or investment funds.

IV. Guarantees of PRE-IPO


1. Operated by Invest Securities, an investment service provider (ISP)

Invest Securities, with 10 years of expertise in the activities of the stock market and the placement, has the approval of investment service provider. This agreement enables PRE-IPO to operate in Europe and raise funds up to € 5 million.

2. No entry fees or management fees

The interests of PRE-IPO are 100% aligned with those of investors. Indeed, PRE-IPO pays itself only according to the performance of the companies financed.

3. Information and secure payment

Once the transactions are legally validated, the funds are released.

V. The output


Direct Investment

Invest Securities will not organize the exit for any direct investment in the company's capital. The investor will be free, in the event that the company is listed on the stock exchange, to sell its securities when he wishes after the lock-up period.

In the case of a buy-back by a strategic partner or a manufacturer, the shareholder will be forced to sell his stake to the acquirer under the same conditions as the majority shareholders. It is the clause of forced sale or drag along very often provided in the covenants of shareholders that obliges the minority shareholders to sell their shares.

Indirect investment

In the event that a Holding Company dedicated to the investment is created and the target is listed on the stock market, Invest Securities will distribute the shares to investors after the lock-up period.

Bridge to IPO

In the case of an issue of bonds redeemable or convertible into shares, the creditor agrees to participate in the IPO and may then transfer its shares resulting from the conversion as soon as he wishes.