Welcome to our review of Companisto, a dedicated investment platform for startups and growth companies. Companisto understands that the development of successful companies requires a combination of innovative ideas, talented entrepreneurs, and adequate capital. As a platform specializing in private venture capital investments, Companisto offers a unique opportunity to embark on the exciting journey of startup investing. Let's explore the possibilities together.
What is Companisto?
Companisto is a Germany-based equity crowdfunding platform that was established in Berlin in 2012. It provides investors with the opportunity to directly invest in startups, distinguishing itself among other crowdfunding platforms in Europe. By investing in startups through Companisto, individuals can acquire shares in these businesses and reap the benefits of their profits and payments. Although this approach carries more risk compared to traditional peer-to-peer lending, it also presents the chance to become involved at an early stage in companies that have the potential for exponential growth.
How does Companisto work?
Investing in start-ups occurs during the early stages of a company's development, when its value is still relatively low. Since start-up valuations often experience rapid growth in the initial years, investing in start-ups offers the potential for significant multiplication of the initial investment if the start-up becomes successful.
Apart from the high potential returns, investing in start-ups provides individuals with the opportunity to support and accompany start-up teams and entrepreneurs right from the beginning of their journey. They can be part of the challenging transformation of a start-up into an industry leader and an agent of innovation.
Previously, start-up investments were predominantly available to professional venture capital firms and a select group of wealthy angel investors who possessed substantial capital and networks within the start-up ecosystem. However, Companisto, the market leader in Germany, Austria, and Switzerland, has democratized start-up investing by enabling everyone to invest in carefully selected start-ups through its platform. The minimum investment amount on Companisto starts at €250, making start-up investments accessible to a wider range of individuals.
Types of investments available on Companisto
Companisto specializes in equity investments, offering various options for investors interested in start-ups. The available investment types are Equity Shares, Stocks, and Angel Shares.
- Equity Shares: these investments are made in companies operating in the form of a GmbH (limited liability company). The financing volume for Equity Shares can reach up to €8 million per year, and the minimum investment required is €250.
- Stocks: Companisto also facilitates investments in companies structured as an AG (share company). Similar to Equity Shares, the financing volume for Stocks can go up to €8 million per year, with a minimum investment of €250.
- Angel Shares: for investors seeking higher involvement and potentially unlimited financing volume, Angel Shares are offered. These investments are made in companies organized as a GmbH (limited liability). The minimum investment for Angel Shares is €10,000.
These equity investment options provide investors with the opportunity to participate in the growth and success of start-up companies based on their preferences and investment goals.
Companisto Angel Club
The Angel Club, a digitally organized platform within Companisto, caters to financially robust investors and business angels who are interested in investing €25,000 or more. Currently, approximately 2,050 business angels participate in equity investments in start-ups and growth companies through Companisto.
Apart from providing a means for strategic financial investment, the Companisto Angel Club offers additional benefits to investors. It grants them access to the founding teams of the companies and provides opportunities for active involvement in the company's development. This creates an environment where investors can contribute their expertise, experience, and insights to support and shape the growth trajectory of the invested businesses.
Investing on Companisto
Investing on Companisto is a simple and streamlined process. You begin by selecting the start-up or growth company you wish to invest in and determine the amount you want to invest. The entire investment procedure takes place online and only requires a few minutes of your time. In exchange for your investment, you will receive a stake in the company. The minimum investment amount starts at €250. It's worth noting that all investment opportunities available on the platform have already been pre-screened by Companisto.
As a registered user on Companisto, you can conveniently participate in start-ups and growth companies directly through the platform's online interface. The current investment offers can be found on the Companisto overview page. By clicking on a specific offer, you will be directed to the corresponding company profile.
The company profile provides all the necessary information to aid your decision-making process. It includes details about the participation terms, a description of the company, an introductory video by the company, explanations of the company's expectations and plans, as well as the pooling agreement and participation contracts.
Once you have made your investment decision and wish to proceed with investing in a particular company, you can do so directly from the profile page. Simply select your desired investment amount, complete your user information, and choose the payment method. You will then receive the necessary contracts for your records. Your investment will be confirmed once Companisto has received the investment amount.
Companisto keeps you informed about the progress of your investment through your portfolio overview. There, you can access the latest updates from the companies you have invested in and monitor the performance of your investments in real-time.
What are the risks?
Investing in startups presents significant opportunities but also carries high risks, as it involves venture capital. In the worst-case scenario, there is a possibility of losing the entire investment. However, there are no further obligations or requirements for additional contributions beyond this initial investment. Investors can mitigate risks by diversifying their investments across multiple startups, following a risk diversification strategy commonly employed by professional investors.
It is important to note that startup investments should not be relied upon as a means to provide for retirement. It is advisable to limit venture capital investments to no more than 10 percent of one's total available assets. By exercising caution and prudent risk management, investors can navigate the dynamic startup landscape more effectively.
Companisto secondary market
Companisto offers a secondary market, which serves as a centralized digital marketplace for investments. This platform allows investors to sell and purchase investments in startups that have already been funded by other Companists. On the secondary market, individual investors can engage in the buying and selling of investments directly with each other. Companisto does not intervene or influence the process of posting offers, trading, or reaching agreements.
Companisto review summary
Companisto is a prominent platform in the field of equity crowdfunding, specializing in investments in emerging private companies. Unlike traditional debt-based investments, equity crowdfunding entails higher volatility in terms of returns. While there is potential for significant profits, it is important to recognize that startup performance can be unpredictable, leading to variability in portfolio outcomes.
As an online platform, Companisto provides an avenue for individuals, including average investors, to actively support promising projects. Entrepreneurs can showcase their business ideas on Companisto, while investors have the opportunity to contribute funds in exchange for equity in these companies.
When engaging in equity crowdfunding, it is crucial to have a comprehensive understanding of the associated risks and to adopt a strategy of diversification to mitigate the potential impact of individual business outcomes. Like any investment, careful evaluation, thorough research, and a long-term perspective are vital in navigating the opportunities and challenges offered by equity crowdfunding platforms such as Companisto.
Companisto pros and cons
- Companisto democratizes investment opportunities by allowing average investors to participate in the early stages of promising startups, breaking down the barriers that previously limited such investments to wealthy individuals.
- The availability of a secondary market on Companisto enables investors to buy and sell investments, providing liquidity and flexibility in managing their portfolios.
- Companisto offers a user-friendly platform that simplifies the process of exploring investment opportunities, making it easy for investors to navigate and select projects that align with their interests and investment objectives.
What to consider:
- Investing in early-stage startup companies inherently carries risks, and it is essential to recognize that there is no guarantee of a return on investment. The nature of these investments means that outcomes can be uncertain, and investors should carefully assess the potential risks involved before committing funds.
Please note that investment decisions should be based on thorough research, risk assessment, and personal financial circumstances.