Shadow Foundr introduces everyday investors to unique start-up business opportunities, which previously would have only been available to a select few.
But how does it all happen?
Well firstly, an entrepreneur will come to us with their opportunity.
The Shadow Foundr team will then assess that opportunity… and the entrepreneur… to ensure all of their claims are true and to see if the idea is something we think has the potential to succeed.
Around 90% of all of the opportunities we see, don’t go past this stage.
But if after our due diligence, we do see potential, then the opportunity is put in front of our Private Investor Network.
So… what is our Private Investor Network?
This is a group of core investors – people we have known for several years, who are experienced at investing into start-ups and understand the risks and the potential rewards.
This group of investors is made up of High Net-Worth Individuals and Sophisticated Investors; people from a wide spectrum of life – ranging from small business owners to investment bankers; CEO’s to retirees.
They act as a second tier of due diligence – asking further questions of the businesses and entrepreneurs who are seeking funds.
If the Private Investor Network fails to fund the opportunity to at least 30% of its funding target, then the business is rejected and the entrepreneur told to seek funds elsewhere.
If the Private Investor Network likes the idea however… and funds it to at least 30%; the opportunity will be placed on our Crowdfunding Platform, for the Crowd to have its say.
Ultimately, it’s down to the crowd, as to whether or not a start-up is funded or isn’t.
If the crowd doesn’t take to an opportunity and it doesn’t receive the necessary funding, then the opportunity is rejected.
If the crowd give it the thumbs up though and the opportunity is funded, then the business can move forward with its plans.
But before funds are released to the business, the entrepreneur must take care of a few important things…
Firstly, they must ensure they have submitted any outstanding due diligence documents to Shadow Foundr.
Then they must issue the shareholders agreement and the company’s articles of association to the new investors.
Once these have all been signed and returned, they then must register all new shareholders with Companies House.
Finally, they must arrange for SEIS or EIS certificates to be sorted for investors, if applicable.
Only when all of this housekeeping is in order, will funds can be released for the business to carry out its plan and hopefully become a success for the founders and the investors.