Frequently Asked Questions

How does the investment and follow-up process for each startup take place?

Investment process

  1. Select your Tracer
    Choose the Tracer that suits you and click "Subscribe"!

  2. Sign in/Create an account
    Sign in with your account or become a member for free.

  3. Decide on the total amount you wish to invest in start-ups
    You will be allowed to invest this amount in a selection of start-ups offered by the Tracer. Ex: if you wish to invest a total of €10,000 a Tracer containing 10 investment opportunities, you will be investing €1,000 in each start-up.

  4. Setting up the direct debit process
    By sharing your banking information and accepting the terms of your subscription mandate, you will be activating the payment process for future direct debits (domiciliation). Making the process more convenient.

  5. Welcome to Tracers
    After paying your subscription fees, you will officially be subscribed and have privileged access to the next investment opportunities fitting the criteria of your Tracer.

  6. Your first investment opportunity
    In the coming weeks we will share with you your first investment opportunity. You will then have 5 days to learn more about the start-up and, if you wish, opt-out of the opportunity before the beginning of the direct debit process.

  7. Direct debit
    Once these 5 days have passed, the direct debit (domiciliation) process will start. Spreds will retrieve the corresponding amount from your bank account and will leave you 14 extra days to take some time to learn more about the opportunity and decide whether you wish to invest or not.

  8. End of the opt-out period
    If you have decided to opt-out during these 14 days (after the domiciliation process), we will reimburse the corresponding amount to your bank account at the end of the aforementioned period.

Follow-up & Report
To join the Tracer, each startup must have received prior confirmation of an investment of at least €50,000 from an external investor, independent from the co-founders. At least one of the directors must also be a shareholder (other than the co-founders). This director could be one of the independent co-investors or a representative of the members of the Tracer who will have volunteered to follow-up on the shareholding.

Spreds commits to sharing with every Tracer investor substantive financial information received from the company.

Moreover, entrepreneurs are free to keep their investors informed on a regular basis on the evolution of their business. We know from experience that some entrepreneurs do regular updates while others only do so occasionally.

Depending on the field of activity, some entrepreneurs need to be careful about the strategic information they share so that it does not fall into the hands of ill-intentioned people.

Exit
There are three possible scenarios:

  • Scenario 1: the start-up fails to develop or faces obstacles and must stop all activity. Investors will then lose their investment.
  • Scenario 2: The start-up is growing but not as expected. Shares could be redeemed by Spreds Finance but with a low or negative return. Investors will recover all or part of their money with the possibility of a small gain.
  • Scenario 3: the start-up is growing well and the shares are sold by Spreds Finance at a significantly higher amount than initially bought. Investors will then make a positive return on their investment.

It is strongly recommended to diversify one’s investments in various start-ups in order to reduce the risk of loss and increase the chances of profit. That's why investing through a Tracer enables you to easily build a diversified portfolio of start-ups.