Making private investment opportunities more accessible
What is Preferred Access?
Preferred Access is CapBridge’s exclusive investment product for individual investors to co-invest alongside expert professional investors in private investment opportunities at smaller ticket sizes. All deals are led by experienced professional investors who are participating in the same round.
Why Preferred Access?
Preferred Access is designed for co-investor syndication of individual investors in Private Equity / Venture Capital opportunities that would otherwise be unavailable to non-institutional investors.
Being able to invest in multiple private deals at smaller ticket sizes offer investors an opportunity to diversify their investment portfolio. Ultimately, we believe it is important to stay diversified to reduce overall portfolio risk.
How does it work?
Individual investors browse available Preferred Access deals on the CapBridge platform. They can pledge an amount to any Preferred Access deal of their choice. Once the campaign for their chosen deal completes, investors transfer their committed amounts to make the investment.
Am I eligible to invest on Preferred Access?
You must be an individual Accredited Investor under the Securities and Futures Act to invest via Preferred Access, which means:
- Your annual income is more than S$300,000 (or equivalent in a foreign currency)
or - Your net personal assets exceed S$2 million (or equivalent in a foreign currency)
or - Your net financial assets exceed S$1 million (or equivalent in a foreign currency)
What fees are charged for Preferred Access?
All investors pay CapBridge a 2% placement fee on funds invested (e.g. if you invest $5000 in Preferred Access Deal XYZ, you pay CapBridge 2% of $5000 = $100).
Investors also pay for yearly SPV costs on a pass-through basis, which is approximately 2.5% investor’s investment amount per annum (e.g. if you are committing $5000 in a deal, you shall pay to the SPV 2.5% of $5000 = $125 each year)
When and how do I transfer funds for investment?
Once a Preferred Access deal is successfully completed, all investors who have committed to invest will be required to transfer their investment amount via bank transfer.
What type of companies are featured on Preferred Access?
Private companies that are capital raising, with a signed term sheet from professional lead investors. These companies are typically late stage growth or Pre-IPO.
How do I invest?
- Create an account on CapBridge platform.
- View available Preferred Access deals on the Preferred Access page.
- Choose the deal(s) you want to invest in and pledge an investment amount.
- When the target interest amount for that specific deal is reached, monies are called.
- Upon close of fundraise, your money is invested through a SPV.
When and how do I transfer funds for investment?
Once a Preferred Access deal campaign is successfully completed, all investors who have committed to invest will be required to pay their investment funds via bank transfer. CapBridge will notify investors of the final payment amount & payment details after the campaign has ended.
What if the fundraising campaign is not successful?
If the campaign for a Preferred Access deal does not hit the target fundraising amount by the target date, no investment will take place and the investor does not need to transfer any funds.
What happens if the fundraising company does not complete its round?
The SPV investment will not be triggered in the event that the capital raising exercise of the company is ultimately unsuccessful. Investor monies will be returned to the investor, less any applicable escrow costs.
Why should I commit early?
Investors should commit to Preferred Access deals that they like as soon as possible, so as not to miss out on the deal before the close of the campaign.
What is the purpose of the SPV?
The SPV shall be used to subscribe for and hold the securities / shares in the relevant fundraising company on behalf of the successful investors.
Are these investments risky?
All investments are subject to some form of risk. Securities in private companies are generally more illiquid than public stock (i.e. securities listed on a stock exchange) and therefore more risky. As Preferred Access deals are late-stage Pre-IPO companies backed by professional lead investors, some of the risk is mitigated.
When and how will I see returns on my investments?
The company you invest in must undergo an exit, which may be in the form of an IPO or M&A, in order for you to see a return on your investment.
How much can I invest on Preferred Access?
The minimum amount for investment is $5,000
The maximum amount allowed is set by the fundraising company.
How do I communicate with the companies?
The lead investor will negotiate with the company on your behalf. You can view the company’s documents in the dataroom from time to time, provided you are permitted to.
What type of companies are featured on Preferred Access?
Private companies that are capital raising, with a signed term sheet from professional lead investors. These companies are typically late stage growth or Pre-IPO.
How do I get my company featured on the deal list?
Create an account on CapBridge, submit the relevant required documents. After our vetting process is successfully completed, your project will be featured on the Preferred Access deal list. There’s no guarantee that your project will be accepted.
How long does it take to raise money?
Depends on the company and not all succeed in raising the capital they seek, can expect at least 60 days to complete.
When does my company receive the investments?
When investments are committed through the Preferred Access platform, the proceeds are held through an SPV trust. Companies are required to reach a minimum funding target, and once this target is reached, the money is released to the company and investors will receive the respective securities. If the target is not reached, investment amounts are returned to investors by the SPV. CapBridge never takes custody of investor funds during the investment process.
What will happen if my fundraising round is oversubscribed?
The company shall allocate the capital raise amongst the interested investors. The investors in Preferred Access will then reduce their investment on pro-rata basis.
Will my company’s information remain confidential?
Yes, only accredited investors can gain access to preferred access deal pages and any sensitive information of the company shall be securely stored in the dataroom.
How is the valuation of my round determined on Preferred Access?
Professional & institutional investors interested in leading the round would have organised meetings and negotiations with fundraising companies to agree on the investment terms and valuation.
How much does it cost to raise funds through Preferred Access?
There are no fees for companies seeking to raise funds through Preferred Access.
How can I communicate with investors on Preferred Access?
Typically, you will not receive direct messages or enquiries from Preferred Access investors on the platform. You are, however, encouraged to share materials in the dataroom for investors to see.