As the first pan-European crowdfunding platform for the healthcare sector, Aescuvest provides opportunities for the retail investors, venture capitalists and companies to make investments and create high returns. Companies in the health sector can also use the platform to launch fundraising campaign.
Aescuvest EU Key Takeaways
- The platform targets research companies and startups in biotech, digital health, med-tech, health service and health rentals.
- Aescuvest GmbH services are free of charge for investors while initiators of crowdfunding projects pay commissions.
- Maximum amount for private investors is limited to €25,000.
- Private individuals and corporations with a domestic bank account can invest in Aescuvest.
- 1 What criteria does Aescuvest use to select investment companies?
- 2 Why invest in healthcare?
- 3 What steps do you need to follow to become part of Aescuvest EU?
- 4 How do you benefit from Aescuvest as a business owner?
- 5 What risks are involved in investing via Aescuvest?
- 6 Aescuvest fees
- 7 Is Aescuvest safe?
- 8 Final Thoughts on Review of Aescuvest
- 9 Discover More
What criteria does Aescuvest use to select investment companies?
- Award winners from EIT Health. Aescuvest selects the best companies from the more than 500 participants of the EIT Health program.
- Investment Committee. The committee performs various assessments on the companies that are shortlisted to make the most opportunistic selections for investors.
- The 5-5-10 formula. The formula involves 5 million capital, five years and factor 10 Return on Investment. Companies that meet these criteria stand a high chance to be selected.
Why invest in healthcare?
The health industry is among the most critical economic sectors in Europe. Moreover, the industry continues to grow significantly in the economy. Thus, it is frequently creating new opportunities for investment. Some of the reasons why the industry will continue to grow despite the government policies and health insurance measures include:
- A high life expectancy.
- Discoveries in the scientific market that bring out better technologies.
- Human beings are more aware of health risks, and most people are concerned about their well-being.
These factors have contributed to the ultimate decisions of institutional investors on the stock exchange and off-exchange markets.
What steps do you need to follow to become part of Aescuvest EU?
- Register for free using a Google, LinkedIn, Twitter account or an email address. Private individuals and corporations with legal capacity and a domestic bank account can invest in Aescuvest.
- Select the company you would like to invest.
- Choose how much you want to invest in that company.
- Provide your bank details, email address and other necessary personal information.
- Provide your ID photo for identity verifications in order to keep your investment secure.
- Pay your investment and let your money work for you.
How do you benefit from Aescuvest as a business owner?
Once you invest in Aescuvest, you get to own a profit-participation certificate issued by a special purpose vehicle. Thus, you will be a shareholder of the company that is responsible for raising funds. As a result, you benefit from the increase in profits coming from all the other companies that other investors have invested in. You can sell the shares whenever you want to exit and take advantage of the capital gain. The 5-7 investment years are enough to make a good capital gain, which you can profit from even in the event that the company sells out.
Furthermore, the company gives you an exception to gain from dividend payments where need be. However, you have to put into consideration the possibilities that some startups may not pick up business as well as they had anticipated. Therefore, it is best to factor in chances of risks in instances where the firm does not bring in the expected income – which is not uncommon.
What risks are involved in investing via Aescuvest?
Early-stage investments via equity crowdfunding involve capital risk. As much as you acquire the securities, a considerable risk is involved. As such, you have to factor in possibilities of loss of invested assets. Furthermore, you do not have a guarantee of the expected yield. It may also be lower than you anticipated. Start-up companies have a higher risk of failure or lower profits than established organizations. Therefore, it is advisable to put up a small portion of capital like 10% as an investment.
Better yet, you can reduce your expectation on the success of one company by making capital investments for various companies. As a result, you increase your chance of gaining at least from several companies if not all. More so, it is advisable that you only invest an amount that will not give you pressure to use during the period of investment. This is because such opportunities come as long-term ventures.
Aescuvest service is free of charge for investors. The platform receives commission payments from the initiators of projects depending on the financing volume as well as annual fees for the use of the platform over the term of financing.
Is Aescuvest safe?
If Aescuvest were to cease business operations before the term of investment has ended, the loan agreements would remain unaffected. The contracts are concluded between lender and borrower, Aescuvest only takes over their administration.
Data transmissions to Aescuvest are always secured by an encrypted connection using SSL certificate. The data is stored on servers in Germany.
The project initiators are solely responsible for the information provided on the projects. Aescuvest accepts no responsibility for the correctness and completeness of the information. However, in order to increase the security for the investors, the applicants go through a three-stage selection procedure in which the technical and business plausibility of the information provided is tested. However, this check does not constitute investment advice.
Final Thoughts on Review of Aescuvest
Aescuvest is probably the best thing that happened to companies that have a genuine desire and work towards enhancing the situation in the healthcare sector. Most importantly, the independent investment committee chooses the best companies from an actual need for products that they bring out with possibility for success and not just as ideas.