Information for Seed Investors



  • Information for Seed Investors

     
    This finetch project looks for two types of investors:
     

    Seed Investors

    There are two steps required before the project can approach major investors.


    Stage 1 - Complete the Project and finish the Business Plan

    The seed investors role is to provide capital to allow the project to have sufficient time and resources to complete all core development tasks which are required before incorporation.

    These core tasks are:

    • Complete all software development for the investment fund processing
    • Workout a clear business model and financial plans
    • Combine everything into a professional business plan with presentations

     
    The costs at this time are expenses for:

    • Full-time and part-time contributors
    • Datacenter server rent
    • IT expenses like computer equipment and software licence fees

    The required capital is about 200K USD for one year.


    Stage 2 - Incorporate with a minimum team and approach Major Investors

    A small team will incorporate the startup in Singapore to establish a legal entity.

    The tasks of Stage 2 are:

    • Engage the major investors and collect all capital required to start the full business activity.

    • Self-Invest any available capital into our own monthly funds. The company will make much more profits from investing into their own product (ca. 8-12% pA) compared to fees charged to customers (2% pA).

    The estimated costs for incorporation are 500K USD with yearly operating costs of ca. 350K USD.

    Upon incorporation the seed investor/s can be rewarded by getting assigned a share of the company ownership or a percentage of the future profits.

     

    Major Investors

    The major investors provide the full capital outlined in the Project Presentation. They understand that after incorporation the phase of hiring staff and acquiring all licences and permits will take time, mostly several months which can be a bumpy ride with unforeseen obstacles.

    The major investors understand that the first profits will come in only after one year and as such have to have a long term interest into the company. The maximum company ownership they can hold is limited to 40%.


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