The concept of 10x
For the first time in history we are creating the opportunity for individuals investors and people to invest in the most interesting private tech companies in an early phase. These companies are backed by reknown Venture Capital (VC) firms and business angels and through our unique approach we are acting as partners to them. Our strategy involves bringing liquidity and flexibility to investors, entrepreneurs and employees and we are primarily buying minority stakes of existing shares at a market based valuation. A typical transaction involves us buying out shares from an early business angel or employees. If a founder is selling we could come in and buy a small portion of the shares. We then come in as a silent partner and support existing investors and the leadership team. When there are professional investors behind the company we know that thorough analysis have been made and there is a large underlying potential. The foundation of the name "Tioex" is based on the Swedish word 10x. It is based on the principle in Venture Capital that every investment should have the potential to generate ten times the capital invested. Through our unique approach we are opening a market that have historically been closed for regular people, until now.
HOW TIOEX WAS FOUNDED
FAQ and how Tioex works
How does a venture capital fund work and how do they perform?
Around 2/3 of all early-stage VC investments generate a loss (based on US data).
However, the possible upside is high:
• For the remaining 1/3, the return is on average three times the paid-in investment.
• For around 1.5%, the return is higher than 20 times the paid-in investment.
• This secures an average annual return of some 20% for early-stage VC funds (based on US data).
• The high return discrepancy of the individual companies is mitigated through diversification where a typical holding represent less than 15% of the total fund size.
For full reading about Venture Capital in the Nordics:
For full reading about Venture Capital in Sweden:
Are you a crowdfunding platform?
No, Tioex provides liquidity to private company shareholders and does not facilitate fundraising for companies.
What are the risks involved investing in young private growth companies?
If you are interested in investing in these types of companies it is very important to understand the basic characteristics and risks involved:
• These are illiquid investments and your capital may be locked in during long periods of time
• These are high risk investments and you may risk to lose some or even all your money
• There is limited information available for investors, private companies does not have to share this type of information
What fees do you charge?
Our fee model is based upon industry practices. The fees we charge is financing our rigorous review process, servicing, legal and compliance overhead, marginal transaction costs, and our efforts to grow and improve the efficiency of our platform. Our pricing will wary and will be affected by factors such as size of the deal and complexity. A transaction fee will be payed when we buy the shares and then we will charge a small annual fee to cover all of our expenses and day-to-day work. If the investment become successful then Tioex will be able to share the benefits of the profit. Our setup is the same as how many VC funds operates, we are all sitting in the same boat and our upside lies in that the investment succeeds.
What if I only want to buy shares outright (and get on the cap table) while a startup is private?
Realistically, direct investments can normally not happen below a minimum ticket size of a couple of million SEK unless you have direct relations or contacts within the company, alternatively you have a good reputation as an investor since boards and management of private companies are protective.
Do I get access to information and frequent reports about the company?
Usually, detailed information such as financials, projections, strategy etc are not made available for investors. Private companies are typically not required to disseminate such information and it also lays in their nature to keep most of the information among the management of the company and the board.
We rely on the analyses and conclusions that professional and successful investors have made. Since these valuations was concluded by VC firms based on their extensive due diligence it will logically act as a guiding star.
Where available, we also direct our members to information about the company - third party reports, press articles and other publicly available information. We encourage our members to conduct independent research, to build comfort and understanding for potential investments, go through possibilities and risks, to make sure they have enough on their feet to make an informed decision.