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.
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 :
OUR VALUE ADDITION & RISK HEDGING FOR YOU
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.