Types of projects
Decamel offers its Investors and Originators the following three types of products:
Why investors are eager to invest in equities of companies?
There are several reasons to invest in company equity and start-ups.
- Attractive financial returns are possible. Unlike returns in other projects, which are measured by percentage points, investments in equity may produce long-term yielding effect (dividends) or multiple effect (how many times investors receive their investment back), which can be 3x, 5x, 10x or more.
- Additionally, there is enjoyment in investing in new technologies, business models and teams before other investors learn about these business opportunities.
- Furthermore, investors like helping entrepreneurs realize their potential, especially when important problems or problems appealing to investors are being addressed.
- Finally, investors diversify their investment portfolios. It is, however, recommended that no more than 5-10% of an investor’s free assets may be invested in such type of assets.
For whom
Legal entities incorporated in the EU
Industry
Scalable or export-oriented industries with focus on technology, including e-commerce, marketplace, web 3.0, fintech, AI, SaaS, mobile apps.
Stages
Angel rounds/ MVPs, Post-MVP, Growth stages: investments are made in pre-seed and seed stage start-ups. Early stage is possible, as it is possible to attract the initial angel round through the Platform. Nonetheless, a project would have an MVP and some market traction. To attract funding between rounds or in the form of mezzanine is possible.
Intended purpose
To increase turnover, to help launch or enhance a product or service, to expand markets or sales, to find cooperation partners or further funding.
Currencies
EUR
Amount of financing
From 20.000,00 to EUR 500.000,00
Maturity
Investments into company equity typically imply indefinite maturity.
For mezzanine products, maturity is typically up to 36 months.
For mezzanine products, maturity is typically up to 36 months.
Amortization of investment principal
Investments into company equity typically imply no amortization of principal.
For mezzanine products, typically bullet repayment at maturity.
For mezzanine products, typically bullet repayment at maturity.
Platform fees for Companies seeking equity investment
Rates for companies and Platform income structure depend on the project and its risk for investors, as well as maturity and other factors. See below typical option 1 and 2 for such cooperation.*
Complete an application form and get your personal offer!
Key questions for start-up companies and companies seeking mezzanine funding
- The problem the business (company) addresses, and the solution to the problem.
- Clear definition of the customer and reasons for use of business services (who is the customer and why).
- Monetization (how the company is making money).
- The means by which the customers are attracted, and through which channels.
- Competition and existing market.
- Revenue growth and project development history.
- Capital raising requirements and plan, capital spending plan.
Typical criteria for fund raising companies
- The team.
- Revenue growth and project development history.
- Ability to operate the business to success.
- History of dealing with challenges of the business.
- Reasonable and justified valuation and strong arguments for growth of investor funding.
* The Platform will benefit from the investments into company equity and mezzanine in either of two ways.
To avoid conflicts of interest, in a given project, the Platform would go only with one option per project, i.e. it would either charge the project for collected funds or it would take part in success of the project and benefit along-side investors.
Option 1. The project is charged.
Before the launch of the project campaign, a set-up consultation fee starting EUR 1.500,00. In case of a successful campaign, a success fee in percentage (%) of the total amount of funds raised during the campaign and the security period after the campaign. In case of a successful campaign, a percentage (%) fee of the total amount of funds raised during the campaign is charged. VAT rates (Republic of Estonia, current rate is 20% is added to the above Platform fee. In case of an unsuccessful campaign and in cases where the funds were raised during the security period after the campaign, or if the project agreed to accept the actual amount of funding collected, then the Platform will invoice the project to success fees for all these amounts.
Option 2. The Platform takes success fee alongside investors.
The Platform will take a success fee in form of a percentage (%) of equity in the said company, and will benefit alongside investors at the time income is being generated for the investors from the project.
To avoid conflicts of interest, in a given project, the Platform would go only with one option per project, i.e. it would either charge the project for collected funds or it would take part in success of the project and benefit along-side investors.
Option 1. The project is charged.
Before the launch of the project campaign, a set-up consultation fee starting EUR 1.500,00. In case of a successful campaign, a success fee in percentage (%) of the total amount of funds raised during the campaign and the security period after the campaign. In case of a successful campaign, a percentage (%) fee of the total amount of funds raised during the campaign is charged. VAT rates (Republic of Estonia, current rate is 20% is added to the above Platform fee. In case of an unsuccessful campaign and in cases where the funds were raised during the security period after the campaign, or if the project agreed to accept the actual amount of funding collected, then the Platform will invoice the project to success fees for all these amounts.
Option 2. The Platform takes success fee alongside investors.
The Platform will take a success fee in form of a percentage (%) of equity in the said company, and will benefit alongside investors at the time income is being generated for the investors from the project.
Originators.
Get fundingInvestors.
Invest with DecamelWhy would a business choose to raise funds through Decamel?
Raising funding with Decamel allows your business to engage with consumers of your service or product as shareholders. It provides an opportunity for capital raising when a bank loan is not an option. Additionally, you may expand your sales or markets or sales, or you may find new business partners. Typically, the reasons would be:
- An alternative to debt funding and other risk capital.
- Access to informed and successful investors and business angels, who may provide advice and synergy to promote your business. Investors can share their experience, skills and to help the investment succeed.
- Opportunity to engage target customers of services and products as Investors of the business.
- Crowdfunding can serve as a promotional campaign and means for market testing.
- Successful angel rounds and crowdfunding rounds are likely to attract subsequent investment.
