Introduction

How
Smart Capital
Investments work

Investment Input

Needs & Funding Goals

Value of Needs & Contributions

The value of a need is determined by a startup at first. Independent experts verify each valuation and determine the final budget range for the need or additional on-top options.

Funding Goal

Similar to crowd funding, every project on the 7Founders platform has a funding goal. The goal is set by the 7Founders Investment Committee and includes ALL NEEDS that are required for a project to reach a status where it can generate Revenues.

About investing

Providing Expertise = Investing

Experts can offer to fulfill a listed need. They become a project investor, if the investment offer is accepted by the startup.

Non-Binding vs. Binding Investment Offers

Every smart capital investment offer remains unbinding, until the funding goal is reached. Once the goal is reached, all offers become binding.

Duration of Investments

We aim at an average investment duration of 36 months, with 24 months in the lower- and 48 months in the higher bound region.

Investment Returns

Every Smart Capital Investment has a
Revenue Share & an Equity Share!

Revenue Share

A revenue share may be a percent of Revenues, Gross Profits or be based on any other line of a companies P&L. Alternatively, a revenue share may be a fixed Euro amount per visitor, sign-up, sale, download or other metric. It is payable throughout the entire investment duration.

Equity Share

The second return component of every Smart Capital Investment is a percent ownership in a companies share capital, the so called Equity Share. Due to the existence of Revenue Shares, we have lower expectations regarding our participation in a companies share capital.