An organized group of investors that combine their funds to invest in a specific deal.
The syndicate model allows co-investors to participate in a lead investor’s deal, benefiting from the lead’s investment experience and ability to vet and research companies to identify winning investments. In exchange, investors pay the lead a carry on their profits.
A lead investor is an experienced venture investor with a track record of successful investments.
Leading the deal means researching and vetting the company raising funds, negotiating the term sheet and writing the first cheque. The lead then fills the remaining amount of the raise from co-investors on Crowdmatrix.
Co-investors are accredited investors that have registered with Crowdmatrix. Co-investors can use Crowdmatrix to find high quality private deals that have been vetted and researched by lead investors that they wouldn’t otherwise have access to. Co-investors can invest in deals through the Crowdmatrix platform.
Accredited investors living in Ontario, Quebec, British Columbia or Alberta.
To use Crowdmatrix an individual must qualify as an accredited investor. To qualify as an accredited investor you must meet 1 of the below criteria.
- Individuals whose net income before taxes exceeded $200,000 (or $300,000 in combination with the net income of their spouse) in the past two years, and who reasonably expect to earn the same amount or more in the current year, can qualify as accredited investors.
- Individuals whose net assets (assets minus liabilities, including your home), either alone or together with their spouse, exceed $5,000,000 can qualify as accredited investors.
- Individuals whose financial assets, either alone or together with their spouse, exceed $1,000,000 can also qualify as accredited investors.
The percentage of profits that the lead investor and Crowdmatrix charge co-investors on any return made. For example if the carry is 20% and you make a $100,000 return on your investment, the carry would be $20,000.
Before a company can be listed on Crowdmatrix, it must apply. It is then vetted by the lead investor and Crowmatrix, if both agree it is a worthy investment then it is listed on Crowdmatrix.
We will accept applications from any type of growing company, but right now we are focusing mainly on early stage tech startups.
Apply to raise funds on Crowdmatrix.
- Register on Crowdmatrix: Complete your KYC and all necessary paperwork digitally through the Crowdmatrix platform.
- Explore Investment Opportunities: When you are signed in, you can view a company’s profile, there you will see an invest button at the top of the page. Using the invest button you will specify the amount you are interested in investing and complete documentation as required.
No, currently only accredited investors can invest through Crowdmatrix.
There are no fees to invest, you will pay a carry only on successful, profitable investments.
A carry is the percentage of profits that the lead investor and Crowdmatrix charge co-investors on any return made. For example if the carry is 20% and you make a $100,000 return on your investment, the carry would be $20,000.
No, unless the lead investor decides to set one.
Crowdmatrix doesn’t touch the money. After the deal closes, you will received closing documents to sign along with instructions on where to send the cheque.
Investing in startups is risky, but also potentially very rewarding. Most venture investors agree that on average it will take 5-9 years before seeing a return.
Each deal will have different minimums and maximums that are set by the lead investor. These can be found in the deal terms section on each company’s profile page.
The maximum and minimum target raise amount is set by the lead and displayed in the company’s profile.
Each deal will have a closing date displayed in their company profile. Closing dates are decided by the company, the lead investor and Crowdmatrix.
You will have to contact us and we can change it for you if the final paperwork has not gone through.
Raising on Crowdmatrix costs the company nothing and the company will receive 100% of funds raised.
There is no limit. The amount being raised is negotiated with the lead investor and approved by Crowdmatrix before the deal goes live.
The length of the raise will be negotiated with the lead investor. Generally 3 weeks to 1 month.
You will determine the valuation and deal terms with your lead investor. Crowdmatrix will review and approve the valuation before being listed.
The syndicate will have one extra seat on the cap table, represented by the lead investor. The lead investor is responsible for managing the special purpose vehicle of co-investors.
Crowdmatrix has templates for you to use, but these should be reviewed with your lawyer.