Investing on Raizers

CROWDEQUITY DEFINITION

With ITSAL-INVEST, start being a business angel!


The crowdequity covers corporate finance by the crowd through an online platform. It gives you the opportunity to become a shareholder and owner of one or more new companies up to your financing capabilities. 

Since October 2014, France, one of the pillars of the collaborative economy, allows individuals and businesses to invest in the share capital of companies through online platforms like ITSAL-INVEST. 

 

Our goal is clear: allow you to invest through the simpliest way in European entrepreneurship.


When I invested ITSAL-INVEST:

  • I allow young companies to develop;
  • I invest in companies that have a direct impact on the local economy;
  • I invested in companies with potential high added value;
  • I spread my network and meet entrepreneurs;
  • If I am a French resident, I realize a tax deduction on income taxes or benefits from the advantageous conditions of the french PEA SME;
  • In Switzerland, the capital gain on my investment is not required.

HOW INVEST ON ITSAL-INVEST

Step One: Subscribe

Registration on our platform is free. To login, we ask you to provide your email address and choose your password. The detail per project is available only to identified members to ensure transparency and security when accessing data.

Step two: Access your personal space and details per project

Your space allows you to access to all information regarding each company presented on the platform:

-> Presentation of the company: the team, its business, its market, its development prospects

-> The project: amount and length of the fundraising

This space also allows you to communicate directly with the entrepreners through the access to a dedicated online forum.

Step Three: Your investment

We suggest you to first complete your profile. Stating your location and your areas of expertise will increase your chances to meet other investors and expand your network. It is also an opportunity to put your skills forward and why not take a specific role within the companies in which you invest.


When you invest in a French company, you can pay your subscription to the capital through three different ways:

  1. Check: you can write a check payable to the related company but sent to Raizers which is responsible for monitoring subscriptions
  2. Credit card: up to 2500 € directly on our platform
  3. Wire: at the end of the subscription process, a transfer code and bank account number will be sent to you so you can make your payment by entering the transfer code in the transaction object.

You electronically sign your application form.

The processing of credit card payments and bank transfer is carried out in collaboration with our partner, the Payment Service Provider, Leetchi Corp via its Mangopay solution.

Note that if the minimum threshold of fundraising (75%) is not reached, the funds will be repaid in full.

 

When you invest in a Swiss company, you pay your sousription by wire only.

At the end of the subscription process, a transfer code and bank account number will be sent to you so you can make your payment by entering the transfer code in the transaction object. The money will be transferred to an escrow account that only the notary dedicated to the transaction will be allowed to unlock at the end of the investment process.

You electronically sign your application form and then we ask you to print it, sign it and return it to us.

Processing payments by wire are carried out in collaboration with our partner the Credit Suisse bank.

Step Four: Track your investments

ITSAL-INVEST developed a functional platform that allows you to monitor in real time the companies you have funded.
We allow you to track your investments and communicate and exchange in real time with the entrepreneurs.

TAX RELEASE

Buying shares of young companies is risky. Therefore, it will be possible to receive tax benefits related to your investment.

 

  • When you invest in a Swiss company, the added value on your investment is not subject to tax.
  • When you invest in a French company, you can benefit from tax reductions detailed below: IR / ISF and from the French PEA SMEs.

 

  Income tax system (IR) Wealth tax system (ISF)
Tax exemption 18% of the amount invested 50% of the amount invested
Maximum amount

€ 50 000 or a maximum of € 9 000 of tax exemption for a single person

€ 100 000 or a maximum of € 18 000 of tax exemption for a couple

€ 90 000 or a maximum € 45 000 of tax exemption

Conditions

Shares must be kept for a minimum period of 5 years

Subscription must take place before december 31st of the current fiscal year

Shares must be kept for a minimum period of 5 years

Subscription must take place before june 15th of the current fiscal year

Example A € 3000 investment allows a tax exemption of € 540 A € 8000 investment allows a tax exemption of € 4000
  Company eligibility conditions
The SME must meet the European Union definition
  • Having between 2 and 500 (ISF) and less than 50 (IR) employees
  • Making a turnover not exceeding € 50 million (ISF) or not exceeding € 10 million (IR)
  • Having a balance of less than € 43 million,
  • Headquarters of the SME must be within European Union, in Norway or Iceland,
  • Be subject to corporation tax (IS),
  • 50 % of the capital must be held by individuals or family business,
  • Less than 5 years of existence (IR).

And must not perform the following activities :

  • activities providing guaranteed incomes due to the existence of a regulated tariff exemption on production,
  • financial activity (except social company),
  • moveable properties management activity,
  • real estate activity (except social company),
  • solar energy business.

 

PEA PME

The PEA PME is an equity account which promotes investments in young companies. It allows taxes exemption on dividend and on the added value under specifics conditions.

The maximum limit is € 75’000 and it's added with the classic PEA. Advantages are listed below :

  • Withdrawal before 2 years : the added value are taxed at 22,5%, plus social taxes
  • Withdrawal between 2 and 5 years : the added value are taxed at 19%, plus social taxes
  • Withdrawal after 5 years : the added value are not taxed, only social taxes

Concerning dividends, the limit is fixed at 10% of total weight of the portfolio. 

RISKS

Careful ! Please remember that all investment bears a risk, and so does investing in crowdlending, with specific risks :

  • A liquidity risk

Liquidity is the facility with which you can resell your bonds after being acquired. Bonds purchased from companies which are presented on ITSAL-INVEST are unlikely to be traded on a secondary market in the short term. You might not be able to sell the bonds held at the time you intend to.

  • The risk of capital loss, partial or total.
  • The return on investment depends on the success of the project financed.

The failure rate of young companies, particularly in the area of innovation, can be high.

All the projects presented on ITSAL-INVEST have been previously analyzed and validated by our experts’ panel. In all cases, ITSAL-INVEST advises you to diversify your investments and prioritize the investment of money that you will not need during the life of the bond.