How do I invest in a Public Fundraise?

What is a Public Fundraise?

In a Public Fundraise, a company offers its profit participation rights publicly, which means anyone can invest. Unlike a Private Fundraise, which is aimed at selected investors, there is no limit on the number of investors. The company can raise up to €8 million per offering.

The minimum investment is €50. You invest via the Invest Now button on the company's website or directly on the beel platform.

What are profit participation rights?

Profit participation rights give you an economic stake in the company, comparable to GmbH shares but without voting rights. Specifically, you are entitled to:

• profit distributions
• proceeds in an exit (e.g. sale of the company)
• liquidation proceeds

In addition, you have an information right (annual financial statements) and a put option that lets you return your profit participation rights to the company at set times. Note that the put option may be restricted. You can find out the details directly from the startup.

The commercial register is not changed, so no notary appointment is needed. You can see your stake in your beel account at any time.

What to look out for

• Valuation: At what company valuation are the profit participation rights offered? The lower the valuation, the more profit participation rights you get for your investment.
• Terms: How many profit participation rights are offered? What is the price per profit participation right? Is there a minimum or maximum amount?
• Company: Find out about the business model, team and track record. Use the offer page and the pitch deck on beel. If you have questions, you can contact the founders directly.
• Risk: Startup investments involve high risk and can lead to a total loss. Only invest money you can afford to lose.

What you need

• a beel account (created free of charge during the process)
• your ID for the identity check (KYC)
• the appropriateness test, which you complete automatically during the process

How is my investment protected?

Your profit participation rights are represented digitally based on the Ethereum blockchain and assigned to your beel account. Your rights are protected primarily by the contracts with the company. If you lose your login details, your account can be restored. More on this: How are my profit participation rights protected?

How the process works

You go through the following steps directly on the beel platform. The entire process is digital; all you need is a browser, an ID document and a bank account.

Step 1: View the offer

Via the Invest Now button on the company's website or in the dealflow section on beel, you reach the offer page. There you can see the fundraising progress, the price per profit participation right, the company valuation, minimum and maximum investment, as well as the company's story and the investment documents. Take your time to review the documents carefully.

Step 2: Log in or register

Click "Invest now". You log in or create a new account, via email or Google account, alternatively also with a wallet, for example MetaMask.

Step 3: Enter your personal details

When you register for the first time, you enter your name, date of birth, place of birth, nationality and address and choose whether you are investing as a private individual or on behalf of a company. You then review your details, confirm that you are not a politically exposed person (PEP), accept the terms and privacy policy and confirm your email address.

Step 4: Appropriateness test

As required by law, you complete a short appropriateness test. You state whether you are investing as a retail investor (investments up to €25,000) or as a professional investor. Retail investors fill in a short questionnaire on their experience with asset classes such as shares or bonds. If you want to invest more than €25,000, you can be classified as a professional client within the meaning of the German Securities Trading Act (WpHG). This requires a more extensive review of your experience and knowledge, which may take some time.

Step 5: Identity check (KYC)

Under the German Anti-Money Laundering Act (GwG), an identity check is required. It is carried out by our partner IDnow, via the app using a QR code or directly in the browser. The check usually takes only a few minutes.

Step 6: Choose your investment amount

You enter either the amount in euros or the number of profit participation rights; the other field is calculated automatically. The amount must be at least the minimum investment.

Step 7: Overview and payment

You see an overview with the number of profit participation rights, investment amount, valuation share and the investment terms for download. You pay by bank transfer (SEPA), alternatively also with EURe. With your first investment, you set up two-factor authentication (2FA), and a personal investment account is created via the payment partner Monerium. You then receive the transfer details. Your investment is reserved for you for four days; the transfer must arrive within this period.

Step 8: Complete your investment

As soon as your money has arrived, you confirm your investment one last time. Your profit participation rights are then created and credited to your account. You can see your investment in your dashboard at any time.

Investing as a company

You can also invest on behalf of a company. Depending on the legal form, you then need additional documents, for example a current commercial register extract, a list of shareholders or proof of authority to represent the company. If you have questions, our team can help at success@beel.com.

Tax information

Profit distributions and exit payments from profit participation rights are generally subject to flat-rate withholding tax (Abgeltungsteuer) plus solidarity surcharge and, where applicable, church tax. Simply holding them does not trigger any tax; only the actual receipt of income is relevant.