First-of-its-kind Diligence Insights brings a democratized approach to investment diligence, particularly useful for complex deep technology investments
SAN FRANCISCO – June 25, 2015 – Investing in complex technology startups can be daunting, but Propel(x) is demystifying investing in these startups with the debut of its crowdsourced Diligence Insights capability. Propel(x) connects deep technology startups with angel investors and is the only online investment platform to incorporate diligence at this level, sourcing expert insights to better equip investors in making more informed investments.
The company defines “deep technology” startups as companies founded on a scientific discovery or meaningful technological innovation. These startups are in the life sciences, energy, clean technology, computer sciences, materials, and chemicals sectors. Propel(x) developed Diligence Insights because completing the level of diligence to invest in this type of technology can be challenging, and the level of research necessary to make an informed investment decision is often time consuming. Propel(x) streamlines the diligence process by leveraging the power of its community of experts.
When tackling the most common research areas – such as seeking expert advice on the technology, gauging market potential, and analyzing the competition – investors can collectively conduct diligence on a startup using Propel(x) Diligence Insights. Investors glean insights from experts, customers and the startups themselves, to better understand the technology and market potential.
Through the online diligence tool, investors are able to submit any question they think will help the diligence process. The community can then vote up the most compelling questions, which then get forwarded to the startups and independent experts to answer. Investors can also refer industry experts, submit market size estimates, and identify companies they view as a competitor. This information is then curated within Diligence Insights, along with relevant background information submitted by the startup, providing an unmatched repository of information to aid in the investment process. Additionally, regularly scheduled video conference calls are hosted and archived to allow investors to interact with the startup founders, streamlining the communication process for both investor and startup.
“In our experience, there is a passionate investor community with an appetite for exploring investment opportunities beyond Internet companies and mobile apps,” said Propel(x) CEO and co-founder Swati Chaturvedi. “Many of these investors have worked in similar industries, so they already have an appreciation for the potential impact these technologies will have on humanity. In addition, since many angel investors tend to invest in industries for which they possess some level of knowledge, it’s is a natural fit for them to consider making investments in deep technology companies.”
Unlike other equity-based crowdfunding portals with broad technology portfolios, Propel(x) is home to investors with specific interests that seek curated, deep technology companies. There is too much irrelevant noise, crowding and congestion on other platforms for investors to sift through in order to find compelling investments. By providing investors with access to an infrastructure of aggregated research, tools and background information on potential investments, Propel(x) delivers on quality.
“We tried other platforms to secure the funding we needed to bring our ideas to market,” said founder and CEO Chris Hanson of Aromyx, a startup digitizing and standardizing smell and taste for the consumer packaged goods and food and beverage industries. “Not only did Propel(x) provide us with the right type of investors, but also an informed investor community that allowed us to reach our funding goal quickly. The Propel(x) diligence process was a significant factor for us to reach our goal.”
Propel(x) Inc., founded in 2013 by CEO Swati Chaturvedi, and Lisheng Wang, is an investment platform built for the “Accredited Investor” as outlined in Rule 501 of Regulation D by the Securities and Exchange Commission. For more information, please visit: http://www.propelx.com.
Propel(x) Inc. is an online investment platform that connects deep technology startups with angel investors, and features startups in the life sciences, energy, clean technology, computer sciences, materials and chemicals sectors. Propel(x) was founded in 2013 by CEO Swati Chaturvedi, and Lisheng Wang, classmates from MIT. Through its community-centric diligence processes, Propel(x) demystifies investing in deep technology and removes the funding barriers for these startups. For more information, please visit: http://www.propelx.com.