Buying shares of private companies can be challenging. To complete a transaction, you must find a seller of the desired shares, negotiate the price, execute legal agreements and work through the issuer’s right of first refusal and other transfer requirements. Applicable securities laws must also be understood and complied with. PrivatEquity.biz has helped buyers navigate each of these steps.
Dedicated Limited Partnership:
For investors investing US $30,000 – US $1 million, we open a dedicated limited partnership (at this stage, the legal entity will be set up in Israel) for each pre-IPO share that is presented on the Arena. The innovative model of dedicated limited partnership, which is characterized by lower costs, enables accessibility to a larger market of private investors.
We offer a unique model of limited partnership investment, which includes management services provided by PrivatEquity.biz’s professional team, consisting of accountants, lawyers and analysts who provide continuous supervision and timely reports regarding the investment and its results.
The limited partnership complies with the strictest standards for financial transactions. The investment process is executed by one of Israel’s leading and most trusted firms, which manages the transfer of the dedicated limited partnership in accordance with the pre-agreed terms of the transaction. In addition, tax and accounting issues are overseen by one of Israel’s leading accounting firms.
We collect management fees in the amount of 3.5% per annum for three years in advance from the investor and 15% success fees of the profit at the time of the IPO and/or the exit event.
We would like to emphasize that in accordance with Israeli law, any investment proposal to purchase rights in the dedicated limited partnership can be submitted to no more than 35 interested investors per year.
Important note: we open dedicated limited partnerships for each share, given the following parameters: the requested share equates to an amount that is not less than US $1 million, in terms of the number of the shares being offered, on the one hand, and on the other hand, the number of the investors will cover the amount of US $1 million at least – in other words, 35 investors investing US $30,000 to complete the quota for each such share, constitutes the maximum number of investors that we are permitted to have pursuant to the Israeli regulation for each dedicated partnership that will be set up.
A Direct Sale:
A Direct Sale for the shares that appear on the Arena, which is accompanied by us, for investors investing between US $100,000 – US $1 million – in consideration of commission in the amount of 5% from the parties – (the seller and the buyer).
The process for the purchase and transfer of the shares is performed through trustees with whom we work in collaboration.
Privatequity.biz provides all of the support services that are required for an investor, both with respect to the Company and with respect to the shareholder, for the completion of the transaction, while maintaining the balance between the privacy that is required for the seller of the shares and for the Company, and the need for transparency with the investor.
As part of our services and in order to control the release of information we have facilitated a secured data room. The room will be accessible to investors who have subjected an investment proposal and proof of funds available for purchase.
Once both documents are in order and the seller has approved the investment proposal details, Privatequity.biz will provide the investor with a password to enter the data room. There, the investor and the seller will be able to communicate, exchange and review documents, all so as to secure the investment process and the confidentiality of the transaction and the parties involved.
The Data Room is provided by Privatequity.biz with no additional charge and in order to ease the investment process and the connectivity between the parties.
An important note: buying and selling processes take time, and the average period of time up until completion of the process is approximately 3 months. We are noting this point in order so that you will have realistic expectations.
Israeli Law Restrictions
It is important to note that Israeli Securities Law permits the transmission of details of a securities’ sale offer (i.e. the number of securities offered for sale and the asking price) to no more than 35 interested potential investors. It should be further noted that, by law, in the event that the securities are not sold to any of the 35 interested potential investors, the seller may not present the securities for sale again, whether on our site or through any other avenue, for a period of 12 months following the initial securities’ sale offer to the first 35 interested potential investors.
It is therefore especially important to attract investors who have been characterized and identified as having a genuine interest in the company’s field of activity, its stage of development, its main shareholders or executives. This reduces the risk of entering into a lockout that could prevent the possibility of selling shares in the secondary market.
Investor – Overview
We provide our clients with access to information and investment opportunities, leveraging our many issuer and shareholder relationships on your behalf.
PrivatEquity.biz Research and Tools
Understand and track the value of your portfolio and prospective investments with our proprietary, institutional-quality research and online portfolio management tools.
Private Securities Specialists
Leverage the experience and expertise of our Private Securities Specialists who will be your guide to the PrivatEquity.biz platform, answering questions about investment opportunities.
Access our inventory of leading private high-tech shares.
PrivatEquity.biz’s strong issuer relationships and experienced operations team enable best-in-class trade execution.
Register with PrivatEquity.biz
Fill out our brief questionnaire so that we can accredit you under the securities laws and understand your investment objectives.
Create a Watch List
Select shares of interest and receive news feeds and research regarding those shares.
Select an Investment
Use our research and investment tools to help evaluate private high-tech shares and browse inventory.
Meet Your Private Securities Specialist
Your Private Securities Specialist will be your guide to the PrivatEquity.biz platform, answering questions about investment opportunities.
Close Your Transaction
Your Private Securities Specialist will provide the necessary legal documents and other assistance to close your transaction smoothly.
View your investments online and receive news and research updates on the company’s progress.
Private Stock Seller – Overview
PrivatEquity.biz helps Private high-tech company shareholders understand the value of their holdings and their liquidity options. When it’s time to sell, PrivatEquity.biz helps shareholders discreetly find the right buyer and close their sale.
PrivatEquity.biz Research and Tools
Shareholders can understand and track the value of their shares with our proprietary, institutional-quality research and our valuation and portfolio management tools.
Private Securities Specialists
PrivatEquity.biz Private Securities Specialists provide the experience, expertise and service shareholders need to transact with confidence.
Connect with the right buyer from among thousands of PrivatEquity.biz’s investor clients.
PrivatEquity.biz’s strong issuer relationships and operations team enable best-in-class trade execution.
Register with PrivatEquity.biz
Complete our brief questionnaire so that we can understand your private market objectives.
Value your holdings
Input your private market holdings so that you can receive relevant news and research and value your holdings.
Work with your private securities specialist
Your Private Securities Specialist will be your guide to the PrivatEquity.biz platform, answering questions and assisting you with stock sales.
Select a buyer
When you decide to sell, your Private Securities Specialist can help you select the right buyer from our network of thousands of investors.
Close Your Sale
Your Private Securities Specialist will provide the necessary legal documents and other assistance to close your sale smoothly.
High-Tech Companies Employee’s Options
PrivatEquity’s Employee Value Generator Programme for Growth High-tech Companies
PrivatEquity.biz is an online platform which exposes private investors to investment opportunities in privately-held high-tech company securities and securities which are held by employees, former employees, company founders, as well as service providers.
It is customary in the high-tech industry to reward employees by granting options to purchase shares of the company in which they work. In this manner, the company provides its employees another form of compensation for their services, which increases in parallel to the company’s growth.
This compensation method has many advantages, not only by creating a sense of commitment, belonging and affiliation of the employee to the company, but also by contributing to the company’s expansion and growth as all the beneficiaries are motivated to work together and reach the same goal: the success of the company.
Private companies choose to remain private over longer periods of time and as a result, the employee, who expects to receive a financial benefit from granted options, now has to wait a substantial period. This results in the weakening of the connection established by granting options.
Positioning the Company as a Market Leader in the Field of Employee’s Benefits
PrivatEquity’s Employee Value Generator Programme enables a private high-tech company to assist its employees in the realization of their options prior to an IPO or a significant sale. The company determines the percentage of vested options each employee is entitled to sell, the selling price and the period in which the offer will be available.
The company shows its faith in its success and in its employees by providing value in the form of shares to its employees. An employee can realize real economic value for the years he has devoted to the Company resulting in an increased commitment to continue working towards the company’s goals.
Opportunities and Advantages for Companies and their Employees:
- The company enables its employees to exercise a portion of their options and in so doing, motivates the employees to increase their contribution to company as their financial concerns are lightened with the generation of this new profit center.
- Through the creation of real value for its employees, the company demonstrates to the marketplace the scope of compensation it offers its employees and thus gains an additional advantage over competitors. As a result, the company can choose to recruit only the finest employees available in the market.
- The company does not bear the costs of employee options compensation, as the proceeds from the sales of these options are derived from third party investors who share the company’s vision and have the financial stability to maintain the shares over time, without exceeding limits in the Company stock option plan as decided upon by the company’s Board of Directors.
- Other than creating value for employees, the company gains value of its own, by establishing a company market price and by cooperating with new investors that will help in promoting the company’s goals.
- The company decides on the time schedule for the sale, the amount of securities for sale and the price at which they will be offered. In addition, the company can verify the identity of the investors who purchase the shares.
- The entrepreneurs and investors in the company’s early investment rounds benefit from the increase in value of their investment, without having to sell any part of the investment and without going through the expensive process of raising capital before the required time.
Integrating Companies into the Model
PrivatEquity enables programme members to participate of the secondary market and offers creative solutions for managing the company’s capital while taking advantage of the existing capital and creating value for the company, employees, entrepreneurs and investors.
A private high-tech company must have completed at least two rounds of investment in order to join the Employee Value Generator Programme.