Frequently Asked Questions

How will the startups included in the Tax Shelter Tracer be selected?

The companies within Tax Shelter Tracer must fulfill the following conditions:

Location:

  • 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)

Valuation

  • 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.

Co-founders:

  • 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.

Internal committee:
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.