Propel(x) is making it easier for angel investors to participate in a wide range of deep technology investments with the introduction of Propel(x) LLCs, lowering the initial threshold from a typical minimum angel investment of $25,000, to as little as $3,000 per investment. Additionally, Propel(x) eliminates the need for an individual to act as the LLC manager by fulfilling all legal and regulatory requirements on behalf of the group.
Group or syndicate investing is a popular way for angel investors to get involved with an investment by lowering the financial risk of a larger upfront investment, while enjoying the same percentage of potential return. However, most group investments require a manager to file the required legal paperwork to form and manage a limited liability company (LLC). Through Propel(x) LLCs, a Propel(x) subsidiary will actively manage the LLC, streamlining all regulatory filings and tax filings, as well as facilitating all investor communications, so angels do not have to chase startups for updates.
“Working through deal flow and performing diligence is difficult and time consuming. We wanted to make investments more approachable from a financial perspective, and alleviate the additional burden of fulfilling all necessary legal and regulatory requirements to form a group investment LLC,” said Propel(x) CEO and co-founder Swati Chaturvedi. “Our service seeks to eliminate the added stress and strain often associated with managing startup communications, allowing angel investors better manage their time while benefiting from greater flexibility with their investments.”
With the lower threshold, angel investors now benefit from access to a broader range of early-stage investment opportunities. This allows them to better diversify their portfolios with more companies across multiple industries, and discover other exciting startups from non-traditional verticals, such as those in deep technology.
“Diversification is essential in early stage investing, and for many qualified, accredited investors, the $25,000 investment threshold for a single investment proves to be a barrier to building a portfolio with a large number of startups. By lowering the threshold, angels find investing in early-stage startups more accessible, allowing them to achieve a more diverse investment portfolio,” Chaturvedi added.
Propel(x) connects deep technology startups with angel investors. 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.
This is the latest in angel investing innovations the company has recently announced. Earlier, Propel(x) unveiled its Diligence Insights capability, streamlining the diligence process by leveraging the power of its community of experts. Through Propel(x) Diligence Insights, investors can connect directly with subject matter experts, customers and the startups themselves, to better understand the technology and market potential.
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.
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.
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.