MAIN QUESTIONS

What is Cofundit?
Cofundit leverages the power of the Crowd to provide funding opportunities for innovative and unique ideas for both established Small & Medium Sized Enterprises, as well as Growth companies. Through the combination of its unique internet platform and targeted local events, Cofundit puts Entrepreneurs in touch with Investors. Entrepreneurs with funding requirements, seeking funds to develop their business, have an opportunity to present their project. Investors ready to lend money to Entrepreneurs and looking for high returns, have a place where they can see several investment opportunities at once.

What is Crowd funding?
Crowd funding (sometimes called crowd financing or crowd sourced capital) describes the collective cooperation, attention and trust by people who network and pool their money together, usually via the Internet, in order to support efforts initiated by other people or organizations. (Source: Wikipedia)

What is an Entrepreneur?
An Entrepreneur has established a business, is past the prototyping phase and generating revenues. They are seeking to fund their growth ambitions and accelerate the development of their Small and Medium size Business. They are also seeking alternative ways to access capital, while not diluting their ownership. They would also like feedback and expert advice during the process to grow and evolve their idea.

What is an Expert?
An Expert possesses a high level of expertise in a specific domain. He is keen to share his know-how with young Entrepreneurs and SMEs seeking to further his network in the process. He makes a difference and engages in a network of like-minded professionals. Every month a ranking is established to determine the best Experts on the platform, based on the votes of the Cofundit Community.

What is an Investor?
An Investor has money available for investment and is seeking alternative investment opportunities in privately held companies. Considering associated risks, he wants not only to make a risk-adjusted return but also make a visible difference for people and ideas he believes in.

What is a Member?
A member is interested by Entrepreneurship, investing and energized by growth and wants to be part of an active Community to make a difference. He wants to give his views on specific Ideas and shares feedback with the Entrepreneurs. He belongs to the Crowd.

How does Cofundit work?
An Entrepreneur submits a proposal for funding for his Business on the Cofundit Platform. Members of the Cofundit Community, the Crowd, evaluate an Entrepreneur's proposal, giving the Entrepreneur valuable feedback. The proposal is then voted on (pre-screening phase). If chosen for investment a more detailed confidential Business proposal is prepared by the Entrepreneur. This more detailed confidential proposal is then assessed by a Community of Experts having expertise in the domain in which the Entrepreneur's business is looking for funding. Once completed, the confidential business proposal is then submitted to a more restricted group of Investors for funding.
Please click on the following link: "How it works"

Is it possible to borrow without having a project?
No, Cofundit only organizes the fundraising of professional projects; consumer loans are not accepted.

Can I have multiple roles (i.e. Entrepreneur-Investor) at the same time?
Yes, if you are eligible and approved, you can have several roles at the same time either consecutively or concurrently. For the protection of your account, you will need to go through the verification and authentication process when you wish to add a new role (i.e. Entrepreneur, Expert, or Investor) to your user profile.

How does Cofundit make money?
Access to the Confundit platform is free of charge to borrowers. Investors have to settle an annual membership fee of $(USD)100 to be able to access the portfolio of potential investments. A success fee (commission) is taken on the total amount of raised funds, which means that Cofundit only makes money when the Entrepreneur successfully raises funds for his proposal.

What do I have to pay on Cofundit?
Experts and Members don't pay anything. Investors pay an annual membership fee of $(USD)100 to access the Cofundit portfolio of investment. Entrepreneurs don't pay to access the platform but they contribute to the marketing spending together with Cofundit (road show events, advertising for their Business proposal).

Is Cofundit activity financially regulated?
CoFundit does not take responsibility for investments marketed on its platform. CoFundit is a market place and its purpose is only to facilitate the direct exchange of information and funds between borrowers and lenders related to specific projects. At no point in time does CoFundit act as a financial intermediary or as a collective investor and as such is a non-regulated company. Cofundit has gained proactive clearance from the Swiss Banking regulatory authorities (FINMA), It will continue to proactively engage with regulators in which ever country it intends to be an active enabler of funding for companies.

What happens if Cofundit goes out of business?
The loan agreements are always between Entrepreneurs and Investors. As such these would remain valid and will continue to be repaid by the Borrower.

How can I change my password?
You can change your password from your dashboard. Go under the tab "My Profile" and click on "reset password".

I forgot my password, how can I get it back?
On the homepage click on the link Forgot Password in the top right hand corner. Enter your email address and answer the security question. A new password will be sent to your email address. To change your new password, go on your dashboard and click on "reset password" under the tab "My Profile".

Can I change my username?
No, the username is fixed. It allows the Cofundit Community users to remember and identify other users.


ENTREPRENEUR'S QUESTIONS

I am seeking financing for my Business. What type of financing can I find on the Cofundit platform?
The Cofundit platform only provides Entrepreneurs with debt financing. There is no straight equity financing, allowing Entrepreneurs to raise financing without further dilution of their equity base.

As an Entrepreneur, why would I borrow from Cofundit rather than from a bank?
Cofundit aims to provide Entrepreneurs easier access to capital by removing bottlenecks in the funding process, making it more effective and more efficient. Indeed the access to capital for start ups or small medium size enterprises (SME's) continues to prove cumbersome and difficult. While business angels have decreased their investments in seed and start up stage to historical lows (yield rate 9% in 2009 vs. 23% in 2005), banksare being increasingly restrictive in their credit approval process.

What kind of project Cofundit is looking for?
The typical innovative project Cofundit is seeking to support will come from companies possessing a clear differentiator (i.e. technology, know how) and an outstanding management team. Our focus is on companies that have demonstrated a successful proof of concept, which can support an on going or short term cash flow breakeven. Among these, we look to partner with those companies who seek investors with shared values, a long term perspective and welcome an active contribution to their management. The typical projects being proposed by entrepreneurs are in the $(USD)300,000 - $(USD)400,000, corresponding to the reported funding gap between friend funds, and venture capital.

Does the loan require a collateral?
No, at Cofundit we estimate that the collateral is the Entrepreneur's reputation towards the Crowd. The Cofundit platform provides Entrepreneur's a very interesting way to promote their ideas. If they were to default on the reimbursement of their loan, the promotion of their company for future fundraising activities on the Cofundit platform could be significantly compromised.

Do I need to open a bank account to use Cofundit services?
As an Entrepreneur, we will ask you to open an account at one of our Partner banks. Investors will directly transfer their funds to your company's bank account. Note that Cofundit will have a viewing right on this account to ensure repayments are done on time.

What is the maximum amount I can borrow as an Entrepreneur? How long is the term of the loan?
The maximum amount Cofundit helps raises funds for is up to $(USD)2,000,000. The loan lasts no more than 3 years.

How are the terms of the agreements set?
When submitting his idea, the Entrepreneur includes their funding requirement and the duration of the loans. Our Expert Community will review the request of the Entrepreneur and will decide, according to the financial statement of the project, whether it makes sense to edit the funding requirement and the duration. In the next step, every investor sets the amount they want to invest as well as their proposed interest rate. At the end of the fundraising period, the Entrepreneur will have a list of investor and will pick up the investors that propose the better terms of agreements.

How likely is the chance that I get a loan?
This largely depends on the risk of your Business proposal.

I'm an Entrepreneur and my company isn't based in Switzerland. May I submit my project anyway?
Currently, due to financial regulations we can not agree to raise funds for companies located outside Switzerland.

How can I follow up the repayment schedule of my loan?
A first funding term proposal will be sent to you at the execution of the contract. Afterwards, once the raised funds have been transferred on your account, the agreed repayment schedule will appear on your dashboard.

I have already submitted my business proposal. May I change the funding requirement?
The details of a business proposal can be edited till the end of the voting stage. However, changing the funding requirement frequently or by large amounts can send the wrong message to potential investors.

I have already submitted an idea. How can I cancel the request?
You can stop your request at anytime as long as the fundraising for your idea hasn't started. To cancel your request contact Cofundit at the following email address: info@cofundit.com

Can I submit several ideas at the same time?
Yes, it is possible.

How long does a fundraising campaign last?
It is envisioned that a fundraising campaign will last 4 weeks.

How to drive an effective fundraising campaign?
As part of the marketing spending, CoFundit will organize several road show events to introduce the selected projects to potential investors. The Cofundit Event is a central piece focused on connecting with people, providing potential investors with information regarding the companies and the Cofundit process by which investments can be made. Therefore it is considered a Pre-launch campaign - interested parties can request more detailed information, subscribe to Cofundit or company Newsletters and engage in an NDA ahead of the fund raising start.

How many other companies present their business at the Cofundit Events?
Typically there will be 2-3 companies presenting their business proposals at the events to ensure diversity but also to retain focus on spotlights projects. Cofundit will ensure a broad exposure of the proposal through the execution of several events across various locations at regular intervals.

How to maximize fund raising success?
Unlike classical investors, Cofundit investors are particularly interested in supporting growth companies with substance to make a difference. The substance includes a robust business concept, existing products and services, customers, revenues and most importantly a competent team able to execute. Making a difference can include a special mission, social impact or supporting new entrepreneurship.

What happens if the amount of money I requested hasn't been raised?
The investment will then take place only if the investors agree on providing the reduced investment amount. The Entrepreneur will need to explain how they will be able to accomplish their Business proposal in light of the reduced funding.

How does Cofundit manage disclosure of information vs. the competition?
We believe that the value of transparency, rapid execution and joint learning substantially exceeds the risk of disclosure. Like in any fundraising, the information disclosed publicly e.g. during the Events should be complete to raise interest from potential investors. However information sensitive for an Entrpreneur's Company incl. detailed financials will be released only to a selected group of interested investors under a valid Non-Disclosure Agreement. Note that the information about a particular business proposal will not be completely disclosed prior to being selected for investment review. Before the Investment review, the CoFundit Community will have only a limited access to information (a short description of the idea, a video, a slide share, the funding requirement of the company). At this stage, the identity of the company will not need to be disclosed. For the Expert review, the company's information is completely disclosed to the Expert Community (business plan, cash flow statement, CVs of the managers, profit and loss statement and balance sheet). Afterwards, only investors will have a full access to information on the company.

Can I reimburse the loan earlier than what has been agreed?
Yes, the loan can be reimbursed in full before the end of the contract, without any penalties.

Can I change or even stop the reimbursement schedule of a loan?
No, once the terms of the contract have been fixed, there is no possibility to change it.

What happens if I'm not able to reimburse the loan?
The loans are legal obligations of the Entrepreneurs company. If loan payments are not made, Cofundit reserved the right to engage third-party companies to recover the debt.

After my first loan, can I borrow again?
Borrowing for your business proposal can be staged and thus the total loan amount can be borrowed over different time periods.


INVESTOR'S QUESTIONS

Why should I invest in Cofundit's projects rather than in banks assets?
Cofundit allows the Investor: -to invest in high return assets: estimated returns are between 10 and 15% -to realize a responsible investment: you invest in a project you believe in, you have discussed and for which you have read the financial analysis. -to know and to follow where the money he has invested goes

What is the maximum amount of money I can lend?
There is no maximum amount. You can invest as much as you want in a project. However we recommend you to diversify your investments in Cofundit portfolio as much as possible to lower the risks.

Do I need to open a particular bank account to use Cofundit services?
No, there is no particular requirement from the investor side. The Investor just needs to have a bank account for the transfer of the funds.

I'm an Investor but I don't live in Switzerland. May I still invest in Entrepreneur's projects?
Yes, there is no geographic restriction.

How are the terms of the agreements set?
When submitting their idea, the Entrepreneur includes their funding requirement and the duration of the loan. Our Expert Community will review the request of the Entrepreneur and will decide, according to the financial statement of the project, whether it makes sense to edit the funding requirement and the duration. In the next stage, every investor sets the amount they want to invest as well as the interest rate. At the end of the fundraising period, the Entrepreneur will have a list of investors funding proposals and will choose the investors that propose the best terms for the loan agreements.

If I lend my money to an Entrepreneur, am I sure the project will be realized?
It is the company's reputation, which is at stake. Hence the high probablility that the project will be realized.

How do I receive my repayments?
Repayments will be made directly from the Company you are funding to the account you designate.

How long does it take for a borrower payment to show up on my account?
This will vary and depend on the location of your home account. Payments that need to be made to accounts outside of Switzerland may take up to a week to post to your account.

How do I cancel my contribution to a project before the fundraising stops?
Once the funds have been transferred on the Entrepreneurs account, there is no possibility to get your funds back. However, in the extraordinary case a project would be cancelled by the Entrepreneur for any reasons, the funds will be sent back on your bank account.

How will I receive reports and forms?
A statement will be provided in electronic format on your dashboard. If you would like to receive a paper copy, please send an e-mail to info@cofundit.com. A paper copy will be mailed to you.

What is the current default rate on Cofundit's platform?
Since Cofundit's platform has been launched in June 2010, we aren't able to provide any statistics on the default rate. Due to our selection process and our strict criteria, we estimate that the default rate will be in the low single digits.

What happens when an Entrepreneur isn't reimbursing his debt?
Upon notification of such a situation, Cofundit, will follow up with the Entrepreneur.

Aren't there any laws for accredited investors which could limit the investor pool?
Our initial investigation suggests that there are no laws for accredited investors, which would limit the investor pool.

How large is the Cofundit Pool of investors?
Cofundit aims at widening the pool of investors which have access to private investments. The pool of "primary" investors within the founders' network is initially made of 150-200 people who have both means and interest to fund innovative growth companies. Based on the attractiveness of the projects presented and the overall momentum, it is envisaged this pool to grow rapidly.

How does Cofundit protect my identity?
First, we verify your identity before you become a member. Second, we keep all members information strictly confidential. In addition, we monitor loan descriptions and on-site communications among members.


EXPERTS QUESTIONS

As an Expert, what do I receive for my expertise?
Experts promote their services on our platform. Cofundit is for them a good way to be known and to develop a real expert reputation towards other leading Experts in their domain, as well as companies interested in their services. Every month a ranking of the Experts will be published on the Cofundit platform and the top-3 of the Experts will be highlighted on the homepage.

Concretely, what is an Expert review?
The Expert review is the last barrier before an Idea enters the fund raising process. The Expert will assess the project of the Entrepreneur with his know-how. He will fill in a template on the platform and give a deep analysis on the idea to determine the level of risk of the project. Every Expert assessment will be available in a first step to the Entrepreneur and afterwards to the Investors.