FAQ
Answers to some Frequently Asked Questions
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About Ascentifi
Is Ascentifi a Venture Capital Fund?
Ascentifi does not manage a Venture Capital (VC) fund. Ascentifi provides investment round accessibility to individual investors on a case-by-case basis. Ascentifi finds innovative, investor ready, MedTech companies, then presents each opportunity to the investors who have registered with us to be notified about these opportunities. The decision to invest lies with the individual investor. This case by case approach allows each investor to curate their own unique portfolio that aligns with their specific interests & risk appetites.
Is Ascentifi an Angel Network?
Not in the traditional sense. People who invest through Ascentifi are primarily driven by a desire to make a good return on their investment. Angels are often motivated by a desire to help the investee company (as well as securing a return on their investment of course!). Also Ascentifi follows a rigorous screening process & carries out significant due diligence before presenting investment opportunities to our clients (who can then decide if they want to do additional diligence) whereas Angel networks will typically distribute the due diligence burden amongst their members, usually requiring individuals to dedicate some of their own time and effort to the process.
Is Ascentifi a Crowd Funder?
No, Ascentifi is not the same as Crowdfunding. Unlike Crowdfunding, Ascentifi will only present deals to investors or potential investors who have expressed an interest in investing through us. Ascentifi diligently screens numerous startups annually and only selects a small fraction that meet our rigorous selection criteria, these are then presented to our group of private investors.
Who owns Ascentifi?
Ascentifi is owned and managed by its founding partners Declan Quinn (CEO) and Kevin Marmion (CFO). It was founded in 2019 and is headquartered in Platform 94, Mervue Business Park, Galway Ireland. Galway is often referred to as the MedTech hub of Europe because of the number of multinational Medical Technology companies based there. This cluster has in turn spawned a vibrant startup culture, supported by programs like BioInnovate which is recognized as a global center for medical technology innovation.
Can anyone invest with Ascentifi?
Investing in early-stage companies is not for everyone. While the potential returns are attractive it is important to acknowledge the associated risks. These risks include the possibility of losing the entire investment, lack of liquidity, dilution of ownership, and the absence of dividend payments.
Only people who have read and understood our Disclaimer and Risk warning, and have accepted our Terms of Investment are accepted for investing.
Our Process
What’s your Fee Structure?
Our fee structure is designed to be simple, transparent, and biased towards ensuring our success is tied to your success. We charge an arrangment fee for our services. The arrangement fee is split between entry and exit as follows –
- On entry, a fee equivalent to 3% of your investment amount. This is not deducted from your investment. It is invoiced separately on closure only after all investment funds have transferred to the investee company.
- On exit, a fee equivalent to 15% of your net profit. Net profit means your total return minus your investment amount. If there is no profit, then we do not charge the portion of the arrangement fee associated with the exit.
Having the majority of our fee connected to a successful exit is our way of demonstrating our commitment to finding high quality investment opportunities & staying connected to them for the lifetime of the investment. Our success is linked to your success. We both have “skin in the game”.
How do I invest?
At Ascentifi, all investors are provided with access to our deals. If you find a startup that catches your interest, we offer two options for further engagement. You can either attend the investor call with the startup or watch a recording of it later. If, after this interaction, you wish to proceed, we grant you access to comprehensive documentation about the startup.
Once you’ve reviewed the detailed information and are ready to invest, you indicate the amount you want to invest. We then issue you the necessary paperwork and transfer details for our escrow account. After the deal is successfully closed, we notify you, and all relevant paperwork is issued to finalize the investment process. This step-by-step approach ensures clarity and predictability for both investors and startups throughout the financing rounds.
At what point am I obligated to invest?
At Ascentifi, expressing interest in a potential investment opportunity does not obligate you to make a commitment to invest. You have the flexibility to review additional documentation and participate in investor calls to gather more information about the opportunity. At any stage of the process, until you sign the necessary paperwork and transfer the funds, you retain the freedom to change your mind and opt out of the investment if you so choose. We want to ensure that you have ample time and information to make an informed decision that aligns with your investment goals and preferences.
Do I get to meet the founders of the Start-Up before I invest?
At Ascentifi, we ensure that every investment opportunity we present is accompanied by a live Zoom call with the founders of the startup. During this call, the founders will provide a comprehensive overview of their business and goals. It’s an interactive session where you will have the opportunity to ask questions and engage directly with the founders.
If you are unable to attend the live Zoom call, don’t worry. We will send you a recording of the session so that you can review it at your convenience. Additionally, if you have any questions after watching the recording, we are more than happy to facilitate communication with the founders and get your inquiries addressed.
If you have any specific questions in advance of the call, you can forward them to us, and we will ensure they are asked on your behalf during the live Zoom session. Our goal is to provide you with all the necessary information and support to make informed investment decisions and have a seamless experience throughout the investment process.
Why can’t I see all the information without indicating interest?
At Ascentifi, certain information related to investment opportunities may be commercially sensitive. To safeguard this sensitive information, we require all interested investors to sign a Non-Disclosure Agreement (NDA) before we can provide access to such confidential details.
The NDA ensures that you agree not to print, share, or distribute any of the confidential information that you will be shown during the investment process. This agreement helps maintain the confidentiality of the information and protects the interests of the startups involved.
Once you indicate your interest in a specific investment opportunity, we will guide you through the process of signing the NDA to enable you to access and review the sensitive information securely. Our commitment to data protection and confidentiality ensures a secure and trust-based environment for both investors and startups throughout the investment journey.
After I Invest
How am I kept Informed about my Investment?
At Ascentifi, we prioritise transparency and communication with our investors. As part of the investment conditions, we require all our portfolio companies to provide regular business updates, which are then distributed to all investors. These updates help inform our investors about the progress and developments of the startups they have invested in. Should you have any specific questions or inquiries regarding your investment company, we have a dedicated Investment Relations Manager available to assist you anytime. Feel free to contact them with your queries; they will be more than happy to provide you with the necessary information and support. Our commitment to regular updates and responsive support ensures that our investors are well-informed and engaged throughout their investment journey with us.
Will I have any direct involvement with the Start_ups?
At Ascentifi, our team takes care of all the interactions and dealings with the Start-Ups on your behalf. As an investor, you can rest assured that we handle the necessary communication and management with the start-ups, and you won’t have direct involvement in day-to-day operations unless specifically requested.
When can I expect an exit?
Investing in startups is a long-term endeavour that requires patience and an understanding of the industry dynamics. Startups typically have a longer timeline for achieving significant growth and maturity than established businesses. As an investor with Ascentifi, it’s essential to recognise that exits may take several years to materialise. Based on our current portfolio, the average exit time, as anticipated by the startups, falls within a range of 4 to 8 years.
As an investor in the startup ecosystem, it’s crucial to maintain a long-term perspective and be prepared for varying exit timelines. Early-stage investments often require time and support to reach their full potential, but they can also yield substantial returns when successful. Our approach at Ascentifi is to provide you with the necessary updates and insights throughout the investment journey to keep you informed and engaged during this long-term prospect.
About Start-Ups
What are the benefits of investing in Start-Ups?
Startups offer the potential for swift expansion, translating into significant investment returns. Investing in startups not only aligns you with pioneering innovations and disruptive technologies, but also positions you to shape industries at the forefront of change. By integrating startups into your investment portfolio, you introduce diversification beyond traditional assets, potentially mitigating overall risk. Additionally, early entry into promising companies grants the opportunity to partake in their growth journey from inception.
Furthermore, backing startups holds a personal aspect of satisfaction, as it contributes to job creation, innovation, and societal advancement. Certain cases might even bring tax relief benefits, with potential qualifying investments garnering up to 40% relief over a span of five years.
It’s important to underscore that while these advantages are appealing, they come intertwined with inherent risks. Thorough evaluation and due diligence remain indispensable prerequisites before embarking on any investment decisions.
What is the difference between Start-Ups and companies listed on the Irish Stock Exchange?
Distinguishing start-ups from companies listed on the ISE reveals significant disparities primarily rooted in their developmental stage and funding approaches. Start-ups frequently secure funding through venture capital, angel investors, or crowdfunding, operating at an early developmental stage. In contrast, ISE-listed companies tap into public markets, issuing shares to a broad spectrum of investors for capital infusion.
Compliance diverges as well. ISE-listed entities face regulatory obligations like financial reporting, disclosure mandates, and adherence to listing rules. Comparatively, start-ups often contend with fewer regulatory constraints, offering greater flexibility at the cost of reduced visibility.
The trading dimension sets them apart too. ISE-listed companies have their shares publicly traded, granting investors liquidity avenues for trading their stakes. On the contrary, start-up investments commonly have restricted liquidity, as they tend to be held for more extended periods awaiting exit opportunities.
Risk profiles diverge due to their developmental stages. Start-ups, owing to their nascent phase, carry elevated risk and a heightened potential for failure. In contrast, ISE-listed companies possess a more established footing, potentially yielding more stable returns. Still, inherent investment risks tied to market conditions and industry specifics persist.
It’s imperative to acknowledge that both start-up and ISE-listed company investments present distinctive pros and cons. Thus, investors should diligently assess their risk tolerance, investment objectives, and time horizon before delving into either category.
Disclaimer
Ascentifi does not and will not provide any form of financial services or investment advice to any party. We do not promote, recommend, or sell investments. We bring start-up companies to the attention of investors. If an investor chooses to invest, we help facilitate the investment process.
The investment decisions an investor makes are the sole responsibility of the investor. Ascentifi does not assess the appropriateness of an investors investment experience and knowledge when bringing start-up companies to their attention.
Please read our full Disclaimer
Risk Warning
Investing involves risks, including total loss of capital, illiquidity, dilution, and lack of dividends. It is suitable only for investors capable of evaluating and bearing those risks.
Your investment is not covered by the deposit guarantee schemes established in accordance with Directive 2014/49/EU of the European Parliament and of the Council. Nor is your investment covered by the investor compensation schemes established in accordance with Directive 97/9/EC of the European Parliament and of the Council.
Please read our full Risk Warning