Q: Is crowdisland an investment advisor?
A: No. We do not offer any advice on any investing in any specific startup. However, each startup that is listed goes through our screening and due diligence process to maintain a certain level of quality. But investors need to carry out their own due diligence and make their own decisions.
Q: Does crowdisland promise a return?
A: No we do not in any way indicate or guarantee a return! We also do not, in any way influence a company after it has listed on the site. Startups carry a lot of risks. Investors must be aware of this risk when they make their investment.
Q: How does crowdisland make money?
A: We take a hands-on approach to helping founders launch their startup. From the entrepreneurs, we charge a flat fee for all the pre-raise activities. These include strategy, financial modelling, valuations etc. As a service fee, we charge a percentage from a successful raise. However, this fee is included the modelling, hence will come from the investors. Unlike other equity crowdfunding platforms, we do not charge investors on their profits.
Q: Are you a broker?
A: No. We do not sell securities (shares), for or on behalf of any company, or influence a transaction in any way. Investors and startups deal with each other directly, in the event of an investment.
Q: Can anyone join the site?
A: No. We do a basic filter of proposed startups before we list them. However, investors and entrepreneurs must do their own extensive due diligence on each other before entering into an investment agreement. Our legal agreements with the entrepreneurs and startups indemnify crowdisland from having any responsibility for the integrity of any deal or person or investor listed on our site. We also reserve the right to remove any investor or entrepreneur if we feel their conduct is detrimental to our platform.
Q: Is crowdisland a deposit taking institution?
A: No. All investor funds flow directly to the startup company. We do not promote any securities, nor hold any on our balance sheet.
Q: Is crowdisland a pyramid scheme?
A: No. crowdisland allows a startup (registered company) to be funded by a group of people in smaller denominations to spread risk. There are no additional returns from more people joining or participating. Each investment opportunity is independent of another.
Q: How do you make startups investor-ready?
A: Many startups could do with some help with their presentation skills, investor slide decks, and refining their forecasts. For more serious advice, such as financial modelling, valuation, or strategy advice, we refer them to York Street Partners, who specialise in professional advisory services. YSP may charge fees separate to crowdisland, depending on the services required.
Q: Do you screen deal metrics?
A: crowdisland is not responsible for any valuations, forecasts or predictions a company may make, nor do we get involved in formulating those details.