Israel’s startup industryis known all around the world for its innovation, entrepreneurial spirit, bright minds, and many other positive characteristics that us Israelis have. Have we already said “Startup Nation”?
Every now and then we see headlines about another startup company that makes an impressive exit and is sold for hundreds of millions of dollars or even billions of dollars. The natural thought that comes to mind in such cases is why didn’t we invest in this startup?
Well, the answer in most cases is that most of us simply lacked the tools and the methods for investing.
At the beginning of 2018 the Equity Crowdfunding Investment Regulations (the “offer coordinator” regulations) come into effect, which was spearheaded by the Israel Securities Authority and approved by the Knesset Finance Committee.
Until the approval of the Equity Crowdfunding Investment Regulations, raising investments in consideration for securities in a company from more than 35 investorsrequired, among other things, publication of a prospectus and various current reporting obligations thereafter.
The goal of the Equity Crowdfunding Investment Regulations is to make it easier for small and medium sized businesses,for example startups and various ventures, to raise capital more easily and without the need to spend valuable resources of time and money, as was the case until today for companies that raised investments from over 35 investors.
Researchers estimate that within a short period of time, most of the investments raised for small and medium sized companies and venturesshall be through equity crowdfunding platforms.
“Together” is an innovative platform for equity and debt crowdfunding. “Together” has a license to serve as an “offer coordinator” from the Israel Securities Authoritysince July 2018.
The Innovative Solution in Investing through Together?
At Together, we understand very well that most of us do not come from the investment or venture capital world, and therefore Together has decided, as a matter of policy, to provide a platform to companies that have already proven technological feasibility and have even raised capital from serious investor whohave examined the investment in depth, found it to have a high economic/commercial potential, and injected substantial capital into the company with the understanding and recognition that investing in the company is a wise step.
In addition, Together has recruited a group of top experts in Israel’s high-tech,investments and financial industries, which shall assist the website in attracting the highest quality of companies in order to minimize risk to the investors.
What does one get from investing in ventures?
If in the past crowdfunding/equity crowdfunding was mainly a type of contribution that, in the best case scenario, would have entitled the donor with a promise to receive the final product, while with Together the investment turns the investor into a partner for all intents and purposes. In other words, an investment through Together grants the investor shares in the invested company, something that will make him part of the company’s future success and maybe even allow him to partake in Israel’s next exit.
