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Archive for the ‘FAQ’ Category

What happens to direct investments if raising funding is unsuccessful?
Wednesday, June 30th, 2010

If the funding of a project fails, i.e. it does not successfully raise the amount to close the funding round, the direct investments will not be made. Since the investments in the platform are only intentions, these intentions will simply be called off and any commitments will be canceled. No money changes hands in the service.

At any time funder can also cancel their intention for any reason if they no longer are willing to invest at the closing. This have no other impact, other than possible negative reputation impact, at least if there is no reason given.

Are direct investments taken into account in the status of raising funding?
Wednesday, June 30th, 2010

It is taken into account, but it requires that the startup accepts the investment from the investor. This is why it may not show immediately on the startup profile.

What can Grow VC help me with?
Saturday, June 12th, 2010

The Grow VC platform can help individuals meet other individuals that share the same values, build teams, develop ideas, create businesses, find investors and mentors, potential partners and customers and so on. The full model is described here.

In addition to the functions in the community, we at Grow VC are also entrepreneurs and want to see other entrepreneurs in the community flourish. We are determined to work with the startups, to find the best solutions and practices that truly support and create value in their businesses. We will provide all the best tools and resources we can, so that you can run your venture in the best possible way!

The community is meant to empower entrepreneurs and startups, in case there is anything more we can help you with, you can always get in touch with your community guide(at markus@growvc.com) and find a solution that works for you!

How do I negotiate terms and conditions?
Wednesday, June 9th, 2010

In order to make the process as efficient as possible, we have a standard term sheet, which is used for the community fund investments, but also as a starting point on the terms for direct investments. Negotiations and related procedures are in the hands of the users, but there are experts in the community that can help you with them and certified partners that are also available at that point. We at Grow VC don’t want to get in the way of the community.

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What is GrowVC’s legal standpoint?
Wednesday, June 9th, 2010

Our legal stand point is that we only facilitate the process and provide the tools, the rest is up to the community. This means that users are responsible to follow your local legislation and live up to best practices.

How can I know that startups are real?
Wednesday, June 9th, 2010

Every paid profile is screened, but Startup profiles undergo strict scrutiny, where we evaluate the founders profiles and then go through the profile of the startup and follow-up on the business. During the closing, a double check is then also performed as a standard procedure by the certified partners.

How is the money exchanged between me and the startup?
Wednesday, June 9th, 2010

The money is not actually exchanged within the service. Only after the amount the startup is looking to raise is reached, does the procedure go into closing. Then it is transferred to our certified partners to handle, for example a law firm depending on where the deal is, where they go through normal procedures and draft the closing documents.

Community Fund Investments
Friday, June 4th, 2010

Making micro investments or community fund investments is one core function in the Grow Venture Community. Paid subscriptions retain 75% of the membership fee, that they can freely allocate in any startups within the community, as they choose.

You can invest your community fund into promising startups by identifying a startup that is looking for funding, selecting “make an offer” and by then choosing “from the community budget”.

Is there money-flow in the platform?
Wednesday, May 26th, 2010

No, there is not.

Monetary transactions only take place once funding rounds are closed and those are handled by professionals in the Grow VC partner network. All signals of money flow within the service, for instances suggesting an investment target for your part of the community fund, these represent intentions to invest, not investments.

How many direct investments have been made in the community?
Monday, May 24th, 2010

Direct investments can be made between a funder and a startup, but Grow VC does not take any commission on this investment. Therefore we do not disclose or publicly monitor this information, we believe it is between the startup and investors to decide upon.