How will the startups included in the Tax Shelter Tracer be selected?
The companies within Tax Shelter Tracer must fulfill the following conditions:
- Each startup must be established in Belgium and officially recognised as an S.A. (N.V.) or S.P.R.L. (B.V.B.A).
- Each startup will have to be Tax Shelter eligible (i.e. allowing you to receive 45% of your investment in tax reduction)
- If turnover < €100,000 (cumulated) --> a maximum valuation of €1,000,000 is needed.
- If turnover > €100,000 (cumulated) --> a maximum valuation of 10x the turnover is needed.
- Each startup must be lead by at least 2 co-founders.
- Together, they will already have invested a minimum of €25,000 in cash (in addition to the time and effort given to the growth of the company) – insuring that the entrepreneurs also take a financial risk in their project.
Shareholders and governance:
- In order to join the Tax Shelter Tracer, each startup will need to receive confirmation from at least one independent investor for an investment of €50,000.
- At least one director must also be a shareholder (excluding the co-founders). This director can be an independent co-investor or a representative of the Tax Shelter Tracer members and will offer to follow-up on the participation.
Representations and Warranties:
Each startup will have to sign legal documents regarding the company’s sanity. Based on this statement, the start-up will or will not be integrated to the Tax Shelter Tracer. Moreover, each company will be under close watch during the entire selection process.
There are two important committees in the file selection process within Spreds:
- Committee # 1: New Issuer Acceptance Committee: the purpose of this committee is to ensure that the startups meet the various criteria needed to join the Tax Shelter Tracer.
- Committee # 2: Quality Assessment Committee: the purpose of this committee is to ensure, before any investment, that the criteria of the Tax Shelter Tracer are actually fulfilled by analyzing the terms of investment.