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An investment is a financial contribution in securities (stocks, promissory notes, bonds), money, and equivalents to gain profit.
Meros Equity does not raise funds for companies but provides liquidity to private companies’ shareholders.
All new Meros Equity investors, as well as investors participating in five or more trades, have a reduced minimum entry threshold of $ 1,500. Investors participating in more than one but fewer than five trades have a $ 2000 entry threshold. It should be noted that the minimum investment of $ 1500 is not available for all offers. Details are indicated in the corresponding offer.
Usually, the one-time commission fee is charged for the sale of securities using Meros Equity, which depends on the size of the investment.
When investing up to $ 500,000 dollars, a 5% commission is charged; from $500,000 to $ 1 million – 4%; $1 million and above – 3%. For instance, with $ 50,000 investments, the commission is 5%, so you will need to deposit $ 52,500. The fee structure remains unchanged for all investors.
Meros Equity offers direct share purchase and investments of one or many companies at once. Investments can be structured in different ways.
Investment fund: investors get access to acquiring assets of a particular company through the Meros Equity investment tool (fund). In this case, the investor acts as a partner in the equity ownership of shares (not options).
This approach makes it more possible to get shares since companies prefer making one entry in the capitalization table rather than many for single private investors.
Client’s trust fund: as in the case mentioned above, the investor also acts as a partner in equity ownership, only in this case, the portion of shares in the fund belong to several companies at once.
Direct acquisition of shares: investors own shares directly, and after purchasing through Meros Equity, they get added to the capitalization table. Such investments require a higher volume of transactions and the shareholder’s participation in interaction with the company.
According to the legal norms, an investor cannot see any offers posted before joining the investment platform. Therefore, you must pass the verification, credit your account, and make a portfolio with your manager, who can assist you with any questions you may have.
In this case, the investor can always search for companies and leave a request for the desired purchase amount. If an investment opportunity arises, the investor will receive a message.
In most cases, Meros Equity investors acquire a stake in a fund that includes shares in one or more companies. It is indirect ownership of shares but a limited liability partnership in the fund that owns the shares. Such a partnership is equity, and the investor owns shares, not options.
Meros Equity acts as a managing member of this fund and is entered into the company’s capitalization table whose shares are acquired.
Meros Equity also offers direct share purchase upon investor request. In this case, the investor owns the securities and can transfer them to its depository after the company has become public. Contact Meros Equity to find out if you can purchase the shares of the selected company directly.
The sellers are usually current and former employees, early investors, and company consultants. Most frequently, only a part of the assets is sold to cover the costs of taxes or acquisitions.
You can purchase shares directly through Meros Equity. However, these are usually significant investments from $1 million and up, depending on the specific company, since investments in private companies at the pre-IPO stage are more complex than buying on the stock exchange. Before all, you must make every transaction through the company. It requires many documents and compliance with the rules established by regulators and the companies.
Our platform is global so that any accredited investor can use it. The international investor must fill out the appropriate form, provide a copy of the passport and proof of residence
We use the latest financing round as a benchmark to evaluate stocks, publicly available information, demand level from investors, price history, etc. Meros Equity usually works with a stock seller to determine the price for each investment opportunity.
There is no transparency in the Pre-IPO market as it is in the public market. For instance, there are no financial reports and presentations for investors. Therefore, any available information is used to assess an investment opportunity, including public information and recent investors’ comprehensive audit results.
Meros Equity conducts private placement transactions under the legislation of the Czech Republic (Art. 272 (1) SIZIF). To confirm the status of an accredited investor, you must fill out an application and answer some questionnaires. Meros Equity offers services in preparing and submitting the investor documents to the relevant authorities.
If we have access to certain companies’ shares, receiving signals of investor interest allows us to start the buying process. As soon as there is enough purchase demand, work on the offer begins.
Investor interest messages help Meros Equity prioritize investment destinations and select equity sellers. Only the latest interest messages are viewed, so we recommend updating them regularly.
Status “Available” (Live): means that a standard or a forward trade is available for distribution. It can also mean estimating the demand for an opportunity. In any case, the status “Available” means that there is at least one offer for investment.
The status “Waitlist”: indicates that there is an available deal, but it has already been allocated. However, the investor can sign up for a waiting list indicating the size of the desired investment. If additional distribution is available, the investor will receive a notification.
Availability status “Preview”: with this status, Meros Equity has access to shares, but the demand is being assessed to form a standard deal. If the investor is interested in participating in the transaction, then it is necessary to leave a corresponding message, and the investor will be notified of participation when the offer is formed.
Meros Equity only executes approved transactions, avoiding the risks of unsuccessful investments, for instance, because the current shareholder won’t provide shares or the company will not recognize the purchase. Meros Equity also uses modern technologies to secure transactions and reduce costs.
The advantage of the Meros Equity platform is the possibility of 100% allocation to Pre-IPO, which increases the potential profit.
When working with Moros Equity, you get a general package of investment documents, and the killing process is simplified by maximum. You fill out the questionnaire and sign an investment agreement, which happens automatically during registration. Knowledgeable specialists prepare legal and financial documents. It also provides periodic updating of data on the status of investments of Meros Equity clients and distribution of financial reports.
The information is relevant if you desire to acquire currently unavailable assets for the investor to purchase. When an investor expresses a desire to obtain currently unavailable assets, he must sign a protocol of intent.
If the investor cancels the completed purchase transaction, he will be charged a $500 fee. The investment process begins when you sign the protocol of intent until the purchase transaction is completed. Signing the protocol of intent is not an obligation, and the investor can withdraw his statement of intent without getting charged a cancellation fee.
No cancellation fee is charged if the transaction cannot be completed for reasons beyond the Meros Equity control and the investor.
Please get in touch with Meros Equity technical support for specific instructions.
The transaction is usually closed within 4-6 weeks after completing the investor acceptance and confirmation of participation in the transaction. When sending a protocol of intent, the investor agrees to complete the investment process within one week of being informed that the transaction is ready for completion. Otherwise, we may redistribute the share among other investors. Transaction termination and non-fulfillment of obligations may result in a $500 fee.
Offers are usually available for three weeks, and funds are accepted at the end of this period. If the demand is high, applications are accepted immediately, and funds must be transferred before the deadline, which is additionally specified.
The investor states his investment amount by signing a protocol of intent. He must complete the investment process and transfer his funds before the commitment deadline is met. Otherwise, he will be charged a $500 fee for failing to participate in the transaction.
A notification of the need to transfer funds is usually sent to the investor seven days before the transaction date. However, keep in mind that the exact date cannot always be determined since the company has a preferential right to purchase.
Investors who want to purchase shares of a particular company get on the Waiting List (reservation of a place in the list of pending transactions), and each investor is welcome to join it. To get on the Waiting List, you must sign a protocol of intent stating the desired amount of investment, but this is not an obligation. The investor can decide to participate in the transaction after receiving the notification of the distribution.
You will find the relevant information in the Trading section of your Meros Equity account. If you run into any problems, don’t hesitate to contact our technical support group.
The status “Waitlist”: indicates that there is an available deal, but it has already been allocated. However, the investor can sign up for a waiting list indicating the size of the desired investment. If additional distribution is available, the investor will receive a notification.
Availability status “Preview”: with this status, Meros Equity has access to shares, but the demand is being assessed to form a standard deal. If the investor is interested in participating in the transaction, then it is necessary to leave a corresponding message, and the investor will be notified of participation when the offer is formed.
The investor receives a certificate of account opening and the management agreement. You can find this information in your account or request it from the manager.
Meros Equity’s income is taxed under the legislation. Different countries have their own tax rules regarding investments in securities, and Meros Equity is not a tax agent. It recommends you contact tax consultants on these issues and independently submit your tax return to the relevant tax authorities.
If the company enters the IPO, then at the end of the lock-up period, the client can hold the securities inside the Meros fund or sell them at the investor’s order. Keep in mind that since the companies aren’t public, there is no specific deadline for the company’s IPO. Therefore, be ready to hold investments indefinitely.
If the investor cancels the completed purchase transaction, he will be charged a $500 fee. The investment process begins when you sign the protocol of intent until the purchase transaction is completed. Signing the protocol of intent is not an obligation, and the investor can withdraw his statement of intent without getting charged a cancellation fee.
No cancellation fee is charged if the transaction cannot be completed for reasons beyond the Meros Equity control and the investor.
Meros Equity cannot guarantee the companies entering the IPO, determine the exact timing of acquisitions, or the start of public auctions. However, we strive to reduce the degree of uncertainty and offer investments at late stages of investment. Such directions usually have an investment horizon of six months to five years and aren’t suitable for all investment strategies.
We usually recommend a long-term pre-IPO investment strategy, but the investor can sell over-the-counter (OTC) securities within our fund. You can place an offer on our platform using a special service and our manager’s assistance. Go to the investment section in your account or contact our manager to find out if you can sell your shares. Please remember that Meros Equity does not guarantee that buyers will be found. Therefore, consider the likelihood of holding shares indefinitely. To increase the chance and speed of selling your positions, you must include a “discount” in the amount of the position, which is usually around 12%.
The funds will be distributed among the investors by the managing member of the Meros Equity fund.
The investor states his investment amount by signing a protocol of intent. He must complete the investment process and transfer his funds before the commitment deadline is met. Otherwise, he will be charged a $500 fee for failing to participate in the transaction.
A notification of the need to transfer funds is usually sent to the investor seven days before the transaction date. However, keep in mind that the exact date cannot always be determined since the company has a preferential right to purchase.
The company you are investing in may announce new funding rounds. Meanwhile, the number of shares on the market will increase, and the share of current investors will decrease, but the actual value of shares may increase if the company’s value increases.
The share price will be determined during the liquidity event (IPO or acquisition by another company). Suppose an investor wants to sell shares ahead of schedule. In that case, it is impossible to guarantee a sale before the liquidity event and estimate the price based on the results of new financing rounds.
Investments through Meros Equity are structured through fund mechanisms. Suppose Meros Equity becomes insolvent. Then, the supervisory authority (the Czech National Bank) will appoint a special administrative commission to recalculate assets and distribute them among investors.
Investors on the Meros Equity platform can make quick deals: sell their positions to each other. Such transactions require only a few days as they do not need third party approval and additional procedures
The seller can set prices above or below the proposed Meros Equity price range, as it is indicative – based on data on funding rounds and others news. At the same time, the owner of the share in the Meros Equity fund can set any price at his discretion.
The market demand chart can be a starting point for potential sellers, as it allows you to assess the interest of Meros Equity investors in a particular company. This interest is not a list of proposals, but only reflects the sentiment of investors.
For example, an investor wants to sell shares of company A at $ 10 per share. Market demand data shows investor interest in the amount of $ 200,000, so it is best to list 20,000 shares instead of 40,000.
To sell assets through a quick deal, you must own at least 2% of the initial fund and hold the position for at least a year. In addition, the offer must also be at least 2 percent. Since the size of the funds is different, the number of shares in the 2% share is also different.
Placement of a sell order takes place within 24 hours in the Meros Equity online system. The order will be available to other Meros Equity investors on the company’s page on our platform.
If the placement function is not available, then Meros Equity is still working on defining a price range for the company’s shares. Once it is determined, the investor will receive a message asking to confirm the sell order, after which it can be placed on the company page.
A sell order can be canceled at any time before the offer is formalized. After the order cannot be changed, it operates on the GTC principle (good until canceled), that is, until it is executed or automatically canceled.
Investors decide for themselves whether to buy your assets or not. You can increase the likelihood of a successful sale by setting an attractive price, for example, with a discount of about 20% compared to the last round of financing.
It should be remembered that more investors can afford to buy a share of $ 50,000 than a share of $ 500 000.
We also recommend staying active and following the order: study requests for prices from other investors and make appropriate changes to the offer.
The quick deal provides exclusive access and is only available to you, but for a limited period of time (you can see it on the transaction timer). If the transaction is not completed before the expiration date, the investor is excluded from participating in the transaction.
You must own the asset for at least a year before you can make a quick deal. If you purchased the shares through a quick trade, the minimum holding period will be six months.
Investors have three days to fund a quick deal. You can find out the deadline using the online service Meros Equity, where there is a countdown timer for funding.
You can transfer funds using the methods defined by Meros Equity. If the funds are not transferred within the required time frame, the transaction will be canceled and the offer will be posted to other investors.
The investor, when making a quick deal, must purchase the entire offer. When placing an offer, the seller chooses the price per share and the number of shares, and the buyer must take the entire order. This limits the range of potential buyers, since some investors are used to seeing smaller amounts at the initial offer in regular transactions.
No, the placement fee will only be charged if the order is successfully completed. In this case, the commission is charged automatically when money is sent to a bank account.
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