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These FAQs are intended to help you get to know us and to understand how fundings via aescuvest works.

In addition, we have put together a glossary for you to learn the meaning of financial terms used on our platform. Please do not hesitate to contact us in case you have additional questions or feel we should add content to the FAQs and/or glossary.

Getting started

What is equity crowdfunding?
Startups are building the economy of the future. They are disrupting old markets and finding new ways to solve problems. Wealthy investors have always been able to invest in these types of exciting opportunities and enjoy the potential for outsized returns in the event the companies achieve their ambitions. Until recently, most of the general public were shut out of early-stage company investing. Equity crowdfunding has changed all that. It allows companies to seek funding from broad public, under a reduced disclosure regime. These investors are empowered to screen and compare a large number of opportunities to make their own informed decisions. Minimum investment sizes at € 1,000 mean that it is a realistic addition to anyone’s diversified investment portfolio.
Why invest in healthcare?
The health industry is one of the most important economic sectors in Europe. It is growing significantly faster than the economy as a whole and is constantly creating new jobs. The need for less developed countries to catch up in the health care sector also offers enormous export opportunities in the long term. There are many reasons why this market will continue to grow in the future despite the cost pressure on the part of the payors (health insurance, government):
  • Demographic development: Higher average life expectancy
  • Scientific progress: new knowledge and better technologies
  • ´Well-being´: Increasing health awareness
  • Need to catch up in less developed countries
Institutional investors have long appreciated these factors. The sector is one of the favourites of investors on the stock exchanges as well as for off-exchange investments by business angels, private equity or venture capital companies.
How do I get started?
Investing via aescuvest.eu is a simple procedure: Register free-of-charge to access in-depth information about the companies presented. Select one or multiple investment ideas. Identify yourself. Transfer the money to an escrow account and receive securities in your private depositary once the campaign has reached the funding goal – or get your money back, if not. Get frequent updates on the development status of your investments. All transactions are performed on a network of trust: Partner banks and financial institutions applying the highest security standards. 100% digital.

Investing with Aescuvest

How do investors make money on aescuvest.eu?
On aescuvest.eu, investors become owners of profit-participation certificates that are issued by a special purpose vehicle (SPV) which in itself will become a shareholder of the company raising funds. Like a typical venture capitalist or business angel, investors on aescuvest.eu expect an increase in the value of the company they invest in. The capital gain will be realized at the time of the exit, which could be simply by selling the shares, or at an exit event, e.g. when the whole company is sold. The investment horizon usually is 5 – 7 years. As the company becomes more valuable, so do the shares. Dividend payments are possible but will rather be the exception than the rule. Investors have to consider the risk that the business fails. Failure is not uncommon, especially among start-up and early-stage businesses. In that case, the return could be less than the amount invested or even nothing at all. The investment structure is built to fully participate with the value development of your investment target.
Who can invest on aescuvest.eu?
Investors potentially include all EU citizens, organisations,  Business  Angels  and  VCs. Subject to the approval of an investment under German law, with the exception of a few countries, even investments from a large number of countries worldwide are possible.
What is the minimum investment amount and is there a limit for retail investors?
The minimum investment is € 500 per campaign. There is no limit for investments, as all instruments intermediated on aescuvest.eu are MIFID-compliant financial instruments.
Why do we need your banking details?
We need to know your bank account in order to be able to return your investment if a campaign fails to meet the funding threshold, or to transfer pay-outs to you. Secondly, to meet the EU’s money laundering provisions we are obliged to only accept investments transferred from verified bank accounts.
Why do you need a securities account?
You invest in Securities with an ISIN via aescuvest.eu. Similar to Securities that you trade via your broker, the notes issued via the platform must be kept in a securities account which could be a credit institution or financial service institution.   If you don't have a securities account yet here a few options of institutions:
Germany Flatex
Volksbank
Raiffeisenbanken
Deutsche Bank
Sparkasse
ING-Diba
ComDirect Bank
UniCredit Bank/ Hypovereinsbank
Merkur Privatbank
Landesbank BW
Austria Volksbank
Raiffeisenbanken
Sparkasse
International ComDirect Bank
European Bank for Financial Services
Swissquote
DKB
BNP Paribas (Consors Bank)
ApoBank
UBS
Sweden Handelsbanken SE
Scandinavia Skandinaviska Enskilda Banken AB
 
What costs are incurred for registration or investments?
Investing via aescuvest.eu is free of charge. In case of a successful Exit, the platform retains a Carried Interest from the returns, subject to a minimum Yield of 10% per annum (IRR).
What’s the duration of the investment?
In general, the equity-like instrument carries an infinite duration. However, the companies selected for the platform shall have an exit scenario for their business case. The notes may be terminated for cause, e.g. if the start-up is taken over by an investor or another company. The typical horizon for an investment would be 3 to 7 years
How does the investment process work?
  1. Explore the investment opportunities on aes-cuvest.eu through a broad array of information available for each project including a company description and project video, investment teaser, securities Prospectus, and a news section.
  2. Once you have chosen an investment, click the Invest Here button and follow the instructions in the Investment Tool. We recommend you en-ter your complete bank details (IBAN, BIC and securities account number) at this stage to ensure that the securities can be posted to your account without any issues. You will of course be able to amend this information later.
  3. At your first investment on aescuvest.eu, you will be asked to verify your identity via IDNow. Online video identification is free of charge and works on all devices including mobile. You will receive confirmation of successful identification shortly afterwards.
  4. After concluding your data input in the tool and accepting all terms via the “Invest now” button, you will receive a confirmation email with all in-formation regarding your investment.
  5. The email will include bank transfer instructions. To finalise your investment, you are required to transfer the investment amount to a clearing ac-count of the trustee bank within three days of signing.
  6. The company you invested in will keep you ap-prised of any recent developments via the Inves-tor Relations Cockpit. You will have the right to participate in shareholder resolutions via the SPV through Crowd Voting and will receive an email each time a ballot is open.
  7. The company you invested in will keep you ap-prised of any recent developments via the Inves-tor Relations Cockpit. You will have the right to participate in shareholder resolutions via the SPV through Crowd Voting and will receive an email each time a ballot is open.
Can I withdraw from my investment?
A withdrawal from your investment is possible within 14 days according to statutory regulations.
Can I sell or transfer my investments?
In general, it is possible to sell, transmit or leave your notes. However, a secondary market for trading notes does neither exist nor is it intended to establish a listing. Accordingly, it is not certain if notes could actually be sold.
What are the risks of investing via aescuvest.eu?
In early stage investing, e.g. via equity crowdfunding, your capital is at risk! The acquisition of the offered securities is associated with considerable risks and can lead to the complete loss of the invested assets. The expected yield is not guaranteed and may be lower. In the case of start-ups and young companies, the statistical probability of failure or even insolvency is significantly higher than with established companies. It is therefore advisable to invest only a small proportion of one's assets (< 10 percent) in venture capital investments. To reduce the dependence on the success of a single company, it is essential to spread an available investment amount over various companies. Moreover, since this is a long-term investment for which there is no liquid secondary market for the sale of shares, you should only invest money that you do not need for other expenses during the investment period.

How are companies selected for the platform?

What qualifies a company to start a funding campaign on aescuvest.eu?
It is our aim to enable investors to participate in funding best-in-class healthcare-innovators in Europe. Hence, before running a campaign on the platform, the start-ups are subject to a multilevel selection process. A key part of this process is our co-operation with EIT Health. When innovative healthcare SMEs and start-ups have developed their idea and begun to market it, EIT Health aims to help these entrepreneurs con-tinue growing. Funding is usually a key issue in this phase. This is where aescuvest.eu comes in. Companies are referred to the platform where they can file an application for review by anin-dependent Investment Committee (IC). The IC are professionals with long-standing expertise in the fields of healthcare, finance, and law. Their assessment is key for project approval. A “no” from the IC is binding and final, regardless of the reason. Their decisions are always followed by a market analysis by our investment manage-ment team whereby the potentials are carefully weighed. Once the company has overcome these first two hurdles, they have to fill a data roomwith complete documentation of the company’s development from day one. This, again, is care-fully reviewed by the investment management team. Meanwhile, the company has to present an independent valuation opinion that is challenged by an auditor. Provided no obstacles are encountered, the com-pany together with capital markets experts start drafting the Prospectus according to a standard structure defined by the European prospectus regime for public offerings. The Prospectus has then to be approved by a national financial au-thority. Once a Prospectus has been approved in an EU country it is valid throughout the whole EU.
What sectors does Aescuvest target?
We support three core sectors
  • Biotechnology – Process engineering, pharmaceutical development, science to clients
  • Digital Health – Such as computational technologies, smart devices, digital tracking
  • Medical Technology – Inventors of hardware, such as medical tools, instruments and machines

Who stands behind Aescuvest.eu?

What is Aescuvest?
aescuvest international GmbH (Ltd.) is a fintech and a marketing service provider for start-up and growth companies of the health sector. Founded in Frankfurt in 2014, it operates the first vertical crowdfunding platform for companies from the health sector in Germany and Europe, aescuvest.de. aescuvest is not a bank. aescuvest has a public license as a facilitator of loan contracts and financial investment products. It is also allowed to broker securities under a liability umbrella (BN & Partners Capital AG).
What does the cooperation with EIT Health mean for the platform and the investors?
The collaboration with EIT Health provides aescuvest.eu with an incomparable access to the most interesting start-ups of the European health sector. EIT Health receives hundreds of applications from entrepreneurs that want to join the diverse accelerator activities. In addition, the collaboration opens access to the partner network of EIT Health – more than 140 leading European organisations spanning key areas of healthcare, such as pharma, medtech, payers, research institutions and universities.
How does Aescuvest make money?
Companies that raise funds via the platform have to pay a – relatively small – initial fee for the legal set-up of the offering. The main income for the platform derives from the commission to be paid for brokering investors. Upon successful exit of a start-up, the platform receives a carried interest, which is paid as a share of the investors' return after reaching a minimum return threshold of 10% p.a. for the investors.

Startups looking to raise funds

Who should apply?
In general, the platform is accessible for companies from all EU countries and countries outside if there is an existing business link to the EU region. Participation in one of the EIT Health sponsored programs is an advantage, but not essential. The development stages accepted by aescuvest.eu generally range from seed to growth companies. The focus, however, is on scale – startups that have developed their idea and begun to market it. Companies can scale up the size of their business and scale out to new markets. A crowdfunding campaign can get entrepreneurs beyond the start-up phase and help small enterprises become big ones.
How does a company apply?
Companies that would like to apply for a campaign can do so via our online template.
There are several hurdles an applicant has to face:

  1. An expert valuation of business plan by the Investment Committee of aescuvest.eu
  2. The personal pitch presentation to aescuvest management.
  3. The review of a comprehensive documentation of the company’s history.
  4. A prospectus that will be filed with a European financial securities authority for approval.
How much money could a company raise via aescuvest.eu?
The prospectus based offering is not legally limited. Currently we offer funding from € 1 million up to € 10 million.
What are the follow-up obligations for companies?
Companies that raised funds via aescuvest.eu have to provide an annual financial statement, quarterly updates on the business development and have to inform investors in due time about significant events.
How many investors does the company has to deal with?
There is only one investor: a Special Purpose Vehicle that bundles the individual investments from the crowd. This investor pooling at the level of the individual project, combined with VC market standard rules for follow-up financing and exit ensures that follow-up financing rounds for the startup are not restricted by receiving crowd capital.