We make investment in startups a seamless experience.

The following steps are involved when you start investing through ezeseed in startups

• Create your profile 

• Accept risks and platform T&C

• eKYC completion, bank verification, investor type, signing user agreement

• Go to the deal you wish to invest in, check the deal details, risks involved, and thorough review of legal documents. Sign the draft subscription agreement  and confirm your payment

• Investment certificates issued by startup 

• Sign the Subscription agreement

We take the due diligence of the startups very seriously and hence we select only 2% of the startups who apply. It involves many steps like the team due diligence, market due diligence, legal and financial due diligence, tech due diligence and meeting the Founders

As a facilitator our aim is to provide you with the most promising startups backed by a passionate and competent founder and team,  which have cleared their due diligence. However, startup investment is a high risk investment and many startups fail despite clearing all the checks. Hence, it is advisable to create an investment strategy and a startup portfolio to mitigate risk.

The fees on investment is upto 4%* of the investment amount.

Yes, you can have a nominee. In case of a minor, you need to assign someone  as a guardian above 18 years of age.

• Investment risk

Given the highly volatile nature of startup investments, the entire amount of your investment will be at risk. The potential for a total loss of capital is high for many startup investments and you should refrain from investing unless you can bear the entire loss.

• Personal risk

For many angel investors a startup’s founding team is to be one of the main ingredients that determine the performance of the company and hence their investments.

• Business risk

Since many startups have a high potential for disruption and venture into emerging industries, there may be some regulatory challenges involved in their sectors or possible issues on intellectual properties.

Once you deactivate your account, you can no longer invest in upcoming deals and cannot access your dashboard. To reactivate it you need to click the reactivation link when you login into account.

A ‘private placement’ of securities is an offering of securities that is not a ‘public offering’. In general, private placement is defined as issuance of securities to less than 50 persons. Private placement is an invite only event. The startup uses its community circle to raise the round. However, if you want to be a part of a private round, you can write to contact@ezeseed.com expressing your interest.

Financial instruments we offer

CCD - Compulsorily Convertible Debentures are hybrid securities which have the same financial rights as equity shares but no voting rights. CCDs do not come on the cap table.

CCPS - Compulsorily Convertible Preference Shares are hybrid securities which have the same financial rights as equity shares but restricted voting rights. CCPS come on the cap table.

NCD - Non Convertible Debentures are secured debt securities which provide a fixed rate of interest periodically with the investment repayment at the end of the tenure. NCDs do not come on the cap table.

CSOP - Community Stock Option Pool are options which have the same financial rights as equity shares but no voting rights. CSOPs do not come on the cap table and are the fastest to execute.

It varies deal to deal. However, for any deal the minimum amount to invest won't go below INR 50,000.

No you cannot create a shared account.

In one deal you can invest a maximum of two times. However, you can invest in a number of different startups and build a portfolio.

You can cancel your investment  by writing to contact@ezeseed.com. cancellation is not permitted before 48 hours of the closure of the deal. The canceled amount gets transferred back to your account within 72 working hours.

No ezeseed does not advise on what to invest in, it only acts as a facilitator.

Once you have invested, the amount is transferred to an escrow account monitored by SEBI trustee agent till the round is open. In case of successful subscription, our legal team does the required compliance, the amount is transferred to the startup account, and the startup issues the certificates which you can download from your dashboard. 

In case of unsuccessful subscription, the amount you invested excluding the convenience fees is transferred back to your account.

You can either use UPI or debit card to do instant payments. You can also do offline transactions using NEFT or RTGS.

After the legal team does the post investment compliance, the amount is transferred to the startup.

If the target amount is not reached the amount is returned to investors. There will be no interest or compensation on these funds.

In the deal you shall see the fund distribution in case of optimal funding and over funding. In the case of oversubscription, the startup may choose to:

• Accept all the funds raised until the closure of the deal

• Choose to reduce the amount invested by each investor by a certain ratio, i.e., pro rata the amount in order to allocate securities to each investor to take only a certain quantum of funds

• Choose to randomly allot funds based on a lucky draw mechanism

• Choose to close the deal prematurely as soon as the target is reached

The decision lies completely with the company and its stakeholders and the decision will be communicated to you over email.

Valuation is done by a third party certified valuer.

Yes, every company reserves the right to reject, in whole or in part, any investment commitment at any time before the proceeds are drawn from the virtual account. Any rejected investments will be returned to the investor in full along with the processing fee.

Yes, you can. There is a discussion board where you  can post your questions. There will be a link of "ask me anything" session happened with the startup which you can access anytime during the deal.

It is required to fulfill regulatory compliance. They are also required post successful subscription round.

It is required to fulfill regulatory compliance. In case of refund or exit opportunity the amount shall transferred to your account.

KYC is mandatory before you invest. However, you can always check the deals after registration.

Once you have made an investment, the ezeseed’s analytics feature is enabled for you. You can track the quarterly investment status and any startup related updates from the dashboard.

Yes you can check all the startup related updates on your dashboard.

Investments in startups are speculative and these companies often fail. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup often relies on the development of a new product or service that may or may not find a market. You should be able to afford and be prepared to lose your entire investment.

Your return depends on your investment amount, the company’s exit valuation (How much the company is worth at that time), and the terms of the subscription agreement. Investors invest money at an extremely early stage and hence their stake is affected by future events only.  If an activation event does not happen, you may never get a return on your investment.

The various activation events can be

• Initial Public Offering

• Mergers and acquisitions

• Private Offerings

• Venture Capital

You may be liable to pay taxes on any dividends or gains you receive from your investments in the startups and payment of such taxes is entirely your responsibility. Therefore, you should consult your tax advisor for more information on these matters.

Your first step is to visit https://ezeseed.com/home/reg_founder and apply.

You have to undergo various stages of due diligence, starting with basic due diligence and followed by legal and financial due diligence.