CFS

CrowdFunding Select offers equity investments in Brazilian corporates. This means that investors gain an ownership interest in the companies in which they invest.

There are many advantages to using CrowdFunding Select instead of a financial institution. First and foremost, CrowdFunding Select raises capital through equity transactions at no cost to company owners. Since investors are buying shares in the companies raising funds, there are no interest payments that need to be made or debt burdens placed on companies. Secondly, a company listing on CrowdFunding Select can begin their fundraising efforts immediately when their profiles are approved, rather than going through a more lengthy administrative process through a financial institution.

Anyone who has a profile that has been approved by CrowdFunding Select may invest.

CrowdFunding Select works with a diverse network of entrepreneurs, investment groups, accounting firms and legal teams to find Brazilian corporate investment opportunities that might be of interest to the global investment community. CFS’s contacts know the importance to the Company of presenting only the most exclusive opportunities that can be found. As a result of that, our network performs a preliminary filtering even before the potential opportunities are presented to CFS. Before allowing a profile to be registered, CFS also conducts its own preliminary due diligence (discussed further below) in order to determine whether the investment opportunity meets CFS’s requirements. Quality always trumps quantity in CFS’s analysis. CFS believes that, utilizing this process, the Company is able to present opportunities that are more appropriate and can be customized for savvier investors.

Anyone who enters the CrowdFunding Select website may access all of the information that registered users have allowed to be defined as “public,” based upon their investment profiles. However, in order to gain full access to the site, users must register and have their profiles approved by the site’s administrator.

CrowdFunding Select performs preliminary due diligence on all potential investors and companies that wish to register on the platform. In order for a user to be approved to have a profile on the platform, an administrator must review and approve the documentation that the user provided in the registration process. Once the user has been approved, their approved profile will appear on the site according to their specifications, and the user will be able to take advantage of the full functionality of the site. The information that pertains to each user’s registration in determining whether the user will be approved differs from one user to the next, as the details of the user determine what documentation the platform requires. For company registrations, the platform requires the company’s financial information, documentation on the owners and individual registering the profile, and documentation to verify the company’s existence and that it is in good standing with the applicable governmental and regulatory agencies. While initial requirements for registration on the site need to be satisfied for the creation of a profile, it is essential that users understand that CrowdFunding Select does not assume responsibility for the accuracy, validity or completeness of any documentation provided by users. Potential investors must understand that CrowdFunding Select does not guarantee any of the information provided on its site nor does it make any claim as to the quality of the investment opportunities that users present on the site. All potential investors must assume all of the risk in any potential investment that they make and must perform their own complete due diligence before investing in order to make an educated assessment of the quality of the company into which they are considering investing.CrowdFunding Select and its associated website are simply vehicles to access information and connect potential investors with companies that wish to raise capital. CrowdFunding Select does not have any financial interest in the ultimate success or failure of the companies being presented on the platform. All users must proceed with potential transactions at their own risk.

Becoming an owner in a Brazilian company is a multi-step process that differs based upon the circumstances of both the investor and the company into which the investment is being made. CrowdFunding Select actively works with domestic and international investors and Brazilian companies to ensure that, from the initial interest of the investor, to the transfer of ownership by the company, all parties involved are comfortable and are able to get the answers they need efficiently.

CrowdFunding Select typically charges the investor a percentage of the amount that they are investing. CFS does not normally charge the company who is seeking to raise capital for their services.

As soon as an approved potential investor has identified an opportunity on the platform in which they would like to invest, a Term Sheet must be signed that outlines acceptance of all of the terms and conditions of the investment, including the total amount to be invested and the price and number of the shares being purchased. Once the Term Sheet has been executed, the potential investor must send their deposit to CrowdFunding Select to ensure their subscription in the investment is held.

Deposits are always held in escrow by CrowdFunding Select until the fundraising effort has been concluded and ownership interests have been transferred. If the fundraising effort is not completed and the company raising capital decides to return all of the deposits that the investors had committed, 100% of the investors’ deposits are returned promptly.

The investor sends payment to finalize their investment directly to the company in which they are investing. While CrowdFunding Select aids both the investor and the company in finalizing this transaction, neither CFS nor its associated accounts are used to deposit the final investment monies. This ensures that the monetary transfer to the company is received as quickly as possible, streamlining the financial transaction process, and it limits the liability of all parties involved.

When an investor has made an initial investment commitment to a company by signing a Term Sheet, the investor must deposit 10% of the amount they have committed to invest. This helps to ensure that the investor has firmly committed to the investment opportunity so that the company raising capital has a reasonable expectation of the amount of the capital that they have already raised. If the investor changes his or her mind before the transfer of ownership interests, the investor will lose 50% of the deposit (5% of the total amount they have committed to invest). CFS takes the investment process very seriously and seeks to ensure that the commitments of both the investors and the companies raising capital are genuine.

There are annual registration, accounting and tax filing documents that must be filed by all Brazilian corporations. While CrowdFunding Select strongly encourages that companies provide updates at least twice per year to their investors, after the investment transaction has been completed, it is the investor’s responsibility to communicate with and request any information on the company deemed necessary.

Monetization of an investment can occur in two ways: through dividend payments, if the company into which the investor has acquired ownership allows, or through a liquidity event. A liquidity event is defined as: a partial or full sale of the company, a merger or acquisition of the company, or going public.

Equity transactions in private companies should be considered long-term investments and it can take years for an investor to exit their investment or see a return. It is also possible that an investor never sees a return on their investment if the company does not succeed.

There are no longer restrictions on the number of investors that can be a part of a sociedade limitada in Brazil. However, there can only be one investor as well if they are willing to commit all of the capital requested in a company’s fundraising effort. Given that both investors and companies seeking capital have preferences as to the number of new investors that are participating in a transaction, CrowdFunding Select works with all parties involved to reach an agreement that is acceptable to everyone.

In order to minimize the administrative work associated with multiple investors, CrowdFunding Select sets a minimum of 5% of the total capital requested in the fundraising effort that an investor must contribute to participate. If an investor wants to fund 100% of the capital being requested in a fundraising effort that can be done as well and would represent the maximum an investor could contribute to any particular deal.

CrowdFunding Select has offers for small, medium and large sized companies both online and offline ranging in size from R$100,000 to over R$2.5 billion currently. Online transactions can only be conducted for offerings that are R$2,400,000 or less per company in a twelve month period, according to current Brazilian regulations. As a result, investors who are interested in larger offerings must contact CrowdFunding Select directly in order to invest.

Yes. CrowdFunding Select’s network includes many investors with substantial expertise as financial, operational, technical and administrative consultants. Having an investor with the experience that a company needs can allow it to achieve levels of success that the company owners may not have considered feasible based upon their original business model.

CrowdFunding Select also helps companies through all of the administrative aspects of adding investors or opening a company at no charge to the company. This allows company owners the ability to focus on the most important aspect of their business, maximizing profits.

You can get in a waiting list after setting the amount you wish to invest. If there are withdrawals, you will be contacted to make your investment. In this case of excess of investments, will also be charged the rate of 10% of the investment as a reserve.