If there is an ‘indirect investment’ in your portfolio this could be there for two main reason:
- You invested into a pitch on BnkToTheFuture that then in turn invests in another pitch on BnkToTheFuture. This is common amongst pooled investment companies on our platform like Bitcoin Capital for example.
- You invested in a company that completes a further funding round through our platform.
In the first case an indirect investment means that should the company succeed or fail, you would gain or lose from the success or failure indirectly through your original investment only and you are not added as a direct investor.
Say for example you invested the minimum requirement of $1k or more in Bitcoin Capital 3.
This company, Bitcoin Capital 3 then reaches its funding goal and goes on to invest in a few companies. At the time of writing this it Bitcoin Capital 3 has made actual investments in:
Kraken Series 'A'
What does this mean?
1. All of the above investments made by Bitcoin Capital 3 - become INDIRECT investments in your portfolio.
2. You do not have the usual investor rights you would have, for example voting rights, in the indirect investment as you do in the direct investment and the shares are not held in your name, rather they are held in the name of Bitcoin Capital 3. If you had invested directly through one of our Special Purpose Vehicles on our platform, you gain a direct investment. This is gained only when you invest in the pitch in question directly through one of our online pitches and via one of our special purpose vehicles that is setup to invest in one company only. Direct investments receive full beneficial interest in the company in question without having to share the gains with other investors as the SPV shares are held in your name.
3. With an indirect investment you get to see and contribute in the pitch forum and stay up to date with its developments.
4. The value of any indirect investments made by Bitcoin Capital 3 increases or decreases the value of Bitcoin Capital 3 as they are assets Bitcoin Capital 3 owns and you an investor and own a beneficial interest in Bitcoin Capital 3. Therefore the value of your investment in Bitcoin Capital increase or decreases as the value of the indirect investments increases or decreases.
Of course you can and are more than welcome to go ahead and invest in these indirect investment directly when this option is available. There are no restrictions in you owning both an indirect and direct investment in the same company should you wish to gain more exposure to a particular company. In fact, this is very common amongst our investors when they see an opportunity they really like.
The second reason you may have an indirect investment in your portfolio is because we give all investors in one pitch access to the investor forums and updates when that company goes on to raise a further funding round with us on our platform. You do not gain shares in the new funding round unless you invest again directly, but you gain indirect access in the second pitch forum so that you are fully updated and have access to all the new documents and posts in the forum purely for disclosure and informational purposes only.