Inyova Crowdinvesting FAQ

 

What is crowdinvesting?

Crowdinvesting allows individuals to participate in the success and profits of a company, typically a privilege reserved for wealthy angel investors or venture capitalists who can afford six to seven-figure sums.
Crowdinvesting democratizes finance by making company investments accessible to all. Inyova has successfully done crowdinvesting before, enabling our supporters to take part in our journey, share profits and grow with us.

 

Why is Inyova doing crowdinvesting now?

Inyova AG ("Inyova") is committed to making impact investing accessible, involving more people in our mission to maximize impact through a growing, engaged community. Here are the key reasons for this crowdinvesting campaign:

• Our mission to democratize finance continues with our last planned financing round before we expect to reach profitability. With motivated angel investors and family offices already on board, we’re eager to give our crowd and customers the opportunity to own their stake in the movement and its expected profits.
• We just finished a financing round with our existing investors. We’re now giving our customers and current crowdinvestors the opportunity to participate at the same terms. Existing crowdinvestors get preferred subscription rights, as they are shareholders already.
• The first Inyova crowdinvesting campaign has been a huge success with thousands of new investors and close to CHF 7 Millions raised. This led to more demand for a new opportunity to own a stake in Inyova. Our crowdinvestors also became stronger impact investing evangelists - Which helps the Inyova movement as a whole.
• We will use the additional capital to accelerate customer growth and introduce innovative features such as holistic wealth management and provide additional asset classes such as microfinance, private equity or venture capital.

 

What has Inyova achieved since the last crowdfunding round?

Since our last crowdfunding round, we have made significant strides in our mission to revolutionize impact investing. We’re honored that our work has been awarded with trophies such as the Geldanlage Digital Award for financial performance. Here are the milestones that we are most proud of achieving:

1. Doubled Revenue: Our financial growth has been substantial, doubling our revenue, which underscores the increasing trust and commitment from our clients and investors.
2. Real Impact Initiatives: We have proven that Active Ownership is a real lever for impact investors. In the names of our customers, we engaged in over 30 initiatives to make the companies our customers are invested in more sustainable. Two recent initiatives wins are:
   • Advertised Emissions at Publicis: With the support of over 1,000 Inyova impact investors, we engaged Publicis, one of the biggest PR companies, about their work for Fossil Fuel companies and asked them to account for the climate impact of their services. We convinced other asset managers to participate and in the end spearheaded a campaign that mobilized an impressive $132 billion in support and generated significant press coverage. This initiative is a good example of how we set new topics that draw the attention of large incumbent asset managers / investors. Read more about this initiative.
   • #InsureOurFuture with Zurich Insurance: In a landmark development, our initiative contributed to Zurich Insurance changing their underwriting policies and no longer insure the expansion of oil and gas, marking a significant step towards sustainable insurance practices.
   • We have filed a shareholder resolution at Netflix: We want them to investigate allegations against board member Mathias Döpfner to have tolerated abusive behaviour by a top manager at Bild, Axel Springer‘s largest media house. In order to file the resolution we collaborated with the Benedictine Sisters of Kansas - who are members of the renowned Interfaith Center for Corporate Responsibility (ICCR) that gained widespread popularity after they filed critical resolutions at arms manufacturers like Ruger & Storm. Read more.
3. Launched a new product: Inyova Grow is our new interest offering, providing customers with fixed income. It enables customers to invest in projects such as wind farms and solar parks, creating real impact in the world
4. Partnership with Migros Bank: We launched a partnership with Migros Bank to bring Impact Investing to a broader audience, making impact investing opportunities more accessible.
5. Path to Profitability: We've increased returns on marketing 4x and strongly decreased our spend, all while growing the business substantially. As a result, we're well on our way to profitability.
6. Strategic Leadership Enhancements: We welcomed the leading DACH fintech experts Aiga Senftleben, Michael Mandel and Roland Folz as new board members. They’re contributing a wealth of experience towards growing our core business and significantly strengthen our governance and strategic direction. Read more.

These achievements not only reflect our commitment to driving real change but also the effective use of the capital entrusted to us by our traditional investors and crowdinvestors. They have enabled us to amplify our impact and set the stage for even more ambitious projects.

Investing in our next crowdfunding round means continuing to enable our next important steps and supporting growth that aligns with your values. Join the limited early-access list and be a part of this exciting and impactful journey.

 

Which strategic strides does my investment in Inyova enable?

With the capital raised in this crowdfunding round, Inyova is on a clear path towards an important milestone: achieving profitability. This crucial step will mark our transition to financial independence and reduce our reliance on external fundraising. Here’s how we plan to use your investment:

1. Accelerating our growth
   We have invested in our hybrid distribution model and will continue doing so. With more distribution partners that carry our impact mission we can expand — and make impact investing the industry standard.
2. Impact-coverage for 100% and scaling of direct financing
   In the last two years, we have integrated Active Ownership (our work turning companies more sustainable) in the app - with big successes in our impact work (BMW, Zurich Insurance, Advertised Emissions - more details in section on impact) with more than 30 engagement initiatives. Until 2026, we want to increase our active ownership work to 100% of portfolio companies for all customers.
   After the launch of Inyova Grow, our offering for direct financing of sustainability projects, we want to increase breadth, depth and number of projects. All to ensure that progress happens, where we as a society need it.
3. Additional solutions for our customers
   In April 2024 we launched Inyova Grow - our fixed income offering with project financing. According to our “conscious multi-product” strategy, we want to further increase the number of investment options.
4. Improvements to our core
   Our customers love our app (4.5⭐ App Store rating), because we are continually improving it - the updated impact reporting and stock-level-reporting have received a lot of positive feedback. We have many more things in store. From further improvements in our impact reporting to easier participation in active ownership - our list is long.

By focusing on these strategic areas, we not only aim to achieve profitability but also to strengthen Inyova's ability to make a lasting impact in the world of impact investing. Your investment in this round will directly contribute to these efforts, enabling us to continue driving positive change and offering rewarding investment opportunities. Join the limited early-access list now and shape a sustainable future while achieving financial returns.

 

What is the minimum and maximum amount I can invest?

You can become an Inyova owner with a starting investment of CHF 250. The maximum investment is CHF 50’000. If you are interested in investing more, please reach out to us via customers@inyova.com.

 

What’s Inyova’s current valuation?

The main way for a startup to get a current valuation is by negotiating it during a fundraising round with new investors. We have not done such calculations since the last crowdinvesting round in 2022 and hence no current valuation for Inyova is available. Because of that, we’re issuing convertible bonds with unit prices of CHF 250 instead. These convertible bonds will be converted into shares at the events defined in the terms of the convertible bonds - this comes with several advantages for you (as described in the section below).

 

What will I get in return for my investment?

Investing in Inyova means participating in our success and contributing to our planned impact. You’re investing in a convertible bond. This means your investment initially is a loan to Inyova and is automatically converted to stock / shares during the next equity financing round (we’re planning to make this happen within the next 12 months).

 

Your benefits after the conversion:

• Participation in expected profits
• Participation in shareholder decisions (vote at the AGM)
• Be part of change-maker community
  • Preferred company insights etc. (Crowdinvestor reporting + webinars)

 

Why convertible bonds and not stocks straight away

We offer you the same conditions as our existing investors in the current fundraising round (they’re also investing in the convertible bond). It's simply easier to do the emission of stock only once during a round and not individually several times. Convertible bonds / loans are highly common ways to do this in startup financing and our VCs are on board as well and signed the bond.

The convertible bond will convert into Swiss common stocks automatically once one of the following things happens: a new equity financing round, a change of control or automatic conversion after 3 years. The convertible bond terms protect investors: if Inyova's share value rises, your convertible bond converts at the pre-rise price; if it falls, the convertible bond converts at the lower price, giving you more shares. Additionally, the convertible bond includes a discount on the current share price, enhancing its value.

By investing, you will after conversion also join a community of impact-driven individuals, engaging directly in our strategic decisions through proxy participation at annual general meetings. This involvement is not only a financial investment but a step towards meaningful influence in the business world.

 

How can I make money from this investment?

Through the convertible bond, you will after conversion become a shareholder and hence participate in expected increases in Inyova's valuation. There are four potential scenarios where you can ‘exit’ from the investment and potentially make a profit:

1. Inyova becomes listed on a public stock market and you sell your stocks (like any other stocks from publicly traded companies). 
2. Another company buys Inyova, and you get paid for your share of the company.
3. Inyova aims to make a platform available where its own shares can be bought and sold. This, however, would only happen after the end of the lockup period, which is currently planned to run until 31 December 2026. You would not be able to transfer or sell shares before that. 
4. Inyova reserves the right to buy back your shares at any time / a new investor buys shares from existing investors. We and a new investor will purchase the shares based on the latest valuation of the company.

As we’ve mentioned, investing in a startup can be risky. Therefore, do not invest money that you cannot afford to lose.

 

What are the risks for me?

If you invest in Inyova, you are investing in a startup. Compared with a stock market investment, your potential returns may be much higher but so is the risk of losing your investment.

If Inyova should fail, you are not liable for any debts. However, you may lose all the money you invested. With that in mind, only invest money that you don’t need.

As there is currently neither a marketplace for the convertible bonds nor the Inyova shares in which your convertible bonds convert into, you will not be able to sell the convertible bonds or the shares (after the conversion) until Inyova either gets bought, goes public, buys back the shares issued or makes a platform available that allows you to sell these shares. Please see details in the section above.

 

Why should I sign up to the investment platform in advance?

If you sign up in advance, you can upload your identification documents and get your account verified ahead of the official crowdinvesting start. This will help you to avoid potential roadblocks to becoming an investor on the 1st of July 2024 when the crowdinvesting platform opens. Signing up to the investment platform also gives you early access to key investment documents Additionally it helps us predict demand and hence provide smooth processing and experience to new crowdinvestors.

 

Why should I sign up to the investment platform in advance?

We expect our crowdinvesting campaign to be oversubscribed. If you sign up in advance, you can upload your documents and get your account verified ahead of the official crowdinvesting start, which may help you beat the rush on April 27th when the crowdinvesting platform opens. This will help to make sure you can secure your share of Inyova in time. 

 

Do I already commit to an investment if I sign up on the investment platform?

No, signing up on the investment platform does not commit you to an investment. Registering simply provides you with the opportunity to receive more information and additional details about the crowdinvesting opportunity. This prepares you well in advance of the crowdinvesting opening. It’s important to note that for this round, we do not require Know Your Customer (KYC) compliance, so you will not need to go through an extended manual process to have your account verified. This makes the process simpler and more straightforward for potential investors.

 

Do I already commit to an investment if I sign up on the investment platform?

Until the subscription process starts on the 1st of July 2024, you will get useful information like invitations to webinars, our investment brochure, etc., so that you can get to know Inyova even better.

 

What timelines do I need to be aware of?

 

What happens if I need to access my money?

Investing in a private company is different to investing in a publicly listed company. It will not be possible to withdraw your investment until one of the four possible ‘exit’ opportunities presents itself.

1. Inyova becomes listed on a public stock exchange
2. Inyova is bought by another company
3. At the end of 2026, Inyova sets up a platform where its shares can be bought and sold.
4. Inyova buys back shares / new investor buys shares from existing investors

As a result, you should only invest money that you do not need.

 

What are the tax implications of this investment?

As Inyova is not in a position to provide you with tax advice, the following information is for general knowledge only. It’s important to discuss your individual situation with your tax authority or advisor. 

As the convertible bond does not pay any interest, we understand that it should not have any tax implications before the conversion to shares.

Once converted, the shares you own in Inyova will be treated like any other share you buy. If you are in Switzerland, you must declare the value of your securities as you would with any other share that you buy. The same applies in case you receive a dividend – you would need to declare it as income from securities.

 

How can I track the value of my investment in Inyova and stay up to date with company developments?

A new feature is planned for the Inyova app, which will show you the latest value of your investment. Because Inyova is not a publicly traded company, the value of your investment will only be updated when Inyova’s valuation changes, which usually happens during the next funding round. Until now, this has happened approximately every 12 months. 

In addition, you will receive an annual shareholder update with information about Inyova’s latest developments and achievements. 

 

Which partner are you working with for crowdinvesting?

As our collaboration with the crowdfunding partner CONDA in 2022 was a success, we’re keeping the winning partnership. CONDA is one of the biggest crowdinvesting platforms serving German-speaking markets and has been around since 2013. In that time, CONDA has completed over 233 crowdinvesting campaigns in Germany, Switzerland and Austria.

 

Can anyone participate in Inyova’s crowdinvesting?

Almost anyone can participate, but there are some conditions. You’re eligible if you fit the following criteria:

• You’re at least 18 years old 
• You’re a resident of Switzerland
• You don’t live in a region with sanctions or embargoes (e.g. Russia)
• You are not a US citizen
• You are not a Politically Exposed Person (PEP) 
• You are not over-indebted, insolvent, or bankrupt
• You have the capacity to enter into legally binding contracts
• Existing customers & crowdinvestors are preferred

Please note that existing customers and crowdinvestors will be preferred.

 

What do I need to do to participate?

1. Register on crowdinvesting.inyova.ch
2. Verify your account by filling in all the required data like personal information, home address and bank details as well as uploading the required documents (proof of identity).
3. Click on “Invest” and choose the amount you want to invest.
4. Deliver the signed documents (e.g. Participation Certificate and other documents).
5. Transfer the money and own your piece of Inyova.

 

What rights do I have as a shareholder?

Before conversion to shares:

As an investor in this round, you will initially hold bonds rather than shares. During this period, you do not yet have shareholder rights, such as voting rights but you’re better protected as bondholders in the event of insolvency because bondholders are paid before shareholders. Remember: Our existing investors also signed the bond - equal treatment matters to us!

After conversion to shares:

As a crowdinvestor you have the same rights in respect to voting as the other common shareholders of the company, which means that each share grants you one vote at Inyova’s annual general meeting. 

Since we have thousands of crowdinvestors, voting rights are pooled through a representative appointed by Inyova. This person will represent you and all other crowdinvestors at our annual general meeting. 

You will also get access to an electronic shareholder management platform through which you can access key documents (e.g. contractual documents, annual financial statements), be invited to vote and instruct the trustee on how to vote.

 

What is a convertible bond?

Convertible bonds are financial instruments that combine the features of corporate bonds (debt) and shares (equity). Convertible bonds are units in an overall loan subject to uniform conditions and have a fixed term. They entail a conversion right according to which you are entitled to convert the convertible bonds into a predefined number of common shares, subject to the conditions set out in the Bond Agreement.

 

Disclaimer

The information contained in this FAQ is advertising according to article 68 of the Swiss Financial Services Act (FinSA). 

The information contained in this FAQ has been prepared by Inyova for general information only and does not contain and is not to be taken as containing any securities advice, recommendation, offer or invitation to subscribe for, purchase or redeem any securities regarding Inyova. The information contained in this FAQ may only be used in Switzerland.

The information contained in this FAQ presents a vision and is also based on third party information which may not be correct. 

The information contained in this FAQ does not constitute a prospectus within the meaning FinSA and no such prospectus has been or will be prepared for or in connection with a potential investment in Inyova.

The information contained in this FAQ contains specific forward-looking statements that include terms like "believe", "assume", "expect", "target" or similar expressions. Such forward-looking statements represent Inyova's judgments and expectations and are subject to known and unknown risks, uncertainties and other factors that may result in as substantial divergence between the actual results, the financial situation, and/or the development or performance of the company and those explicitly and implicitly presumed in these statements. These factors include, but are not limited to general market, macroeconomic, government and regulatory trends, competitive pressures, and other risks and uncertainties in the business of Inyova is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements, whether as result of new information, future events or otherwise, except as required by applicable law or regulation. Nothing contained in this FAQ is, or shall be relied on as, a promise or representation concerning the future performance of Inyova.