Yes, that’s right. The idea is simple. Any FiBAN member can sign-up to be an active angel or follower. Or both. When an active angel is participating in a round she can inform her followers of the possibility to join the round. The followers can then decide whether or not they want to join. This allows followers to easily diversify their portfolio with smaller tickets, but have a trusted Lead angel in each case. The investment will be a parallel investment with the active angel done as a bearer bond.
Why be a follower? An opportunity to diversify your portfolio, more filtered deal flow, ease and convenience, smaller costs compared to funds and the potential to learn. And everytime, the follower ultimately decides whether they want to invest.
Why be an active angel? Leverage, carry-fee for successful exits and the ability to partake in larger rounds and bigger cases for starters. The Lead Angel gets a small administrative fee in the beginning (1%), if the exit is more than 2x, the compensation is higher.
As all investments in high-growth companies, the model doesn’t eliminate the risk factor. Any investment through this model is as risky as other investments done in FiBAN syndicates. FiBAN Follow is non-profit as is FiBAN. The only purpose is to convey investments and not to increase the value of the company. The revenue is intended to cover the costs only. The annual fee to be a follower is 250 euros a year. With a single price the follower can choose to follow as many active angels as they like. Many of the details of the model are still being finalised, and will be fine tuned in the upcoming weeks.
Once again, this couldn’t be possible without our fantastic partners EMU and KPMG.
Let’s do this together and make history! Interested and want to sign-up? Ping Amel.
Janne Jormalainen, Chairman of the Board, FiBAN
firstname.lastname@example.org phone: 0505562032
Esa Mäkeläinen, Member of the Board, FiBAN
email@example.com phone: 0503074880
Teemu Varpanen, Member of the Board, FiBAN
firstname.lastname@example.org phone: 0503866248
Amel Gaily, Deal Flow Manager, FiBAN
email@example.com phone: 0503655019
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