XulVest CrowdFunding

"Be advised that you are not making a donation into XulVest but purchasing our Convertible Loan Note through the configured "Donate" button". More details on the investment offering are found in the investment section.
Unsuccessful
This campaign failed to reach its funding goal 2 months ago
0% Funded
  • $44.00 Donated
  • $10,000.00 Goal
  • 8 Donors
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About the Campaign

Investment opportunities are numerous, but inaccessible to everyone.

Africa is experiencing a boom in entrepreneurship due to proliferating internet and mobile computing technologies. Capital funds are being raised from a group of limited global partners (ventures capital firms and angel investors mainly outside Africa) that wish to invest in early stage businesses, and in particular seek exposure to startups originating from Africa but fewer Africans are paying attention to invest along with high net worth individuals.

 

The Problem                                                                                                  

Investing in Africa early stage investment opportunities has been made only available to professional angel and venture capital investors, or high net worth individuals infringing many middle and low income earners an equal chance to take a piece of the pie.

   The Solution

Harness financing by making it possible for small investors (low and middle income earners) to begin investing in , and  not limited to, early stage businesses through various financing options.

You Can Own The Future

XulVest is an online crowdfunding platform which exists to break inequalities on access to investments and promote lifelong wealth building opportunities. We believe in democratizing access to investment opportunities where everyday people (high, middle and low income earners) connect with everyday businesses on our site.

 

First Investment Offering

Convertible Note

Note converts to Common Stock when company raises $200,000 in a qualified equity financing

Maturity Date: 31 December 2020

$600,000 (valuation cap)

20% discount rate

8% interest rate

Maximum ($10,000) of Convertible Notes

Minimum ($6,000) of Convertible Notes

Our platform makes $5 possible

We want to connect network of friends, family, customers and strangers, both local and international with the opportunity to invest funds from as little as $5 in highly vetted businesses in Zimbabwe then Africa alongside venture capital firms, angel investors and high net worth individuals. We make you belong in the pack.

 

Our plans for your Investments

  • Website upgrade
  • Build Brand Awareness for XulVest via marketing and advertising efforts.
  • Hire top talent who will help us scale while delivering excellent service.

 

Target Market

Tertiary students, middle and low income earners. You do not need a high paying job to start investing and amass wealth, skill matters.

 

How We Make Money

Platform fees – The primary revenue centre for the business is generated from ongoing success fees associated with a business campaign that receives its funding in full.

Processing fees – To protect our network of investors on our platform from fraudulent campaigns, the business will charge processing fees to carry out due diligence on bad actor checks and the authenticity of the business or project. For each campaign profile, the business will generate fixed revenue. However, this is company’s policy and does not constitute investment advice or guarantee safety of investment and investors need to carry out their own due diligence in businesses they wish to finance.

 

A Letter From Our Founder

Hie there, I am so excited to invite you to become an owner in our company by making an investment in XulVest to help us build the largest and most trusted crowdfunding company for our clients and investors with a mission to democratize access to investments, help businesses grow, create employment and build wealth for investors like you while creating sophisticated investors.

For years capital investing has been mostly exclusive to a few, but with XulVest, now everyone can have access to early and growing companies. In this new dispensation of business boom and disruption by startups in Zimbabwe, to investors, we make you belong in the pack of accelerators and afford you a chance to join VC firms, angel investors and high net worth individuals in investing in high risk businesses with high returns if they succeed. To businesses, now you can access capital for your business from an unlimited number of small investors. The same people that invest are really the same people that really buy or use the product or service.

Investing in XulVest itself is your chance to own and get early on a financial revolution shaping the landscape of finances, You Can Own The Future from as little as $5. Invest now!!!

Thank You

Mitchel Baka

Founder & CEO

 

Investment Offering Details

 

What is a Convertible Note?

A convertible note is short-term debt that converts into equity.  Convertible notes are structured as loans with the intention of converting to equity. The outstanding balance of the loan is automatically converted to equity at a specific milestone, often at the greater valuation of a later funding round.

Why do startups raise investment capital using convertible notes?

Convertible notes (or “notes”) offer a simple, cheap, and fast method for startup funding as compared to traditional priced equity rounds. It also defers the more complex discussion of startup valuation to the next round of financing.

What does the maturity date indicate on a convertible note?

The maturity date of a note indicates the date when the note is due to be repaid to the investor along with any accrued interest, if it has not yet converted to equity.

In practice, in most situations, startup investors will not call for a note to be repaid at the maturity date, and will instead amend the note to extend the note’s maturity date, typically for a period of another year.

What is a cap in a convertible note?

A convertible note cap sets the maximum valuation at which the investment made via the convertible note can convert into equity. Investors in the convertible note typically get converted at the lesser of the valuation of the next qualified priced round and the cap.

What does the interest rate indicate on a convertible note?

The interest rate of a convertible note indicates how much interest accrues to the investor prior to the note’s conversion to equity or its repayment as cash when called.

Typical interest rates on most convertible notes range from 4-8%. For example, with an interest rate of 8%, $100 invested on day 0 would convert as if $108 had been invested on day 365, if conversion happens on day 365.

From an investor standpoint, the interest rate term is not as impactful to startup returns as picking the right startups to fund, and as other convertible note terms such as the conversion cap and/or discount rate.

What happens to a convertible note if a company shuts down and goes out of business?

As holders of a debt instrument, holders of convertible notes come ahead of holders of equity in terms of repayment of any remaining assets they may have a claim to during liquidation. In concept, the holder of a convertible note will be paid ahead of all equity holders.

What happens to a convertible note if a company is acquired or merges with another company?

If a company is acquired or merges before a convertible note converts, the specifics of what a noteholder receives will depend on the specifics of their convertible note terms. The most company friendly terms call for the note to be repaid with interest to the investor. Most convertible notes call for the note to be converted to common shares in the company at a pre-set price just before the acquisition/merger, often at the same price as the cap of the note. Still others call for the noteholders to be paid back their principal investment plus interest, plus a premium amount, generally 0.25-1.5x of principal.

Does a convertible note holder have a choice about converting a note in an equity financing round?

The terms of conversion are usually listed in the convertible note. Typically, conversion to equity is automatic at the next equity raise, but may be conditional on a round meeting certain thresholds such as a minimum round size.

 

Investor FAQs

What is XulVest?

XulVest is an online portal that links emerging and growing business enterprises with local and international investors.

What do you do?

We break the inequalities on access to investment by democratizing investment opportunities where everyday people (high, middle and low income earners) connect with everyday businesses on our site and promote lifelong wealth building opportunities.

What is the problem you are solving and why is it problem?

Investing in startup businesses has been the privilege of VC firms, angel investors and high net worth individuals. XulVest sought to afford everyone a chance including middle and low income earners to convert their earned income into passive and portfolio income thereby building wealth for generations.

Why did you start the company?

We wanted to give a person (including students) willing to invest as little as $5 a chance to invest in Africa’s next big thing.

What is your go-to-strategy?

Convenient Web: Create a super easy mobile and web apps that are convenient for the customers.

College Ambassadors: These are intern advocates that blog about XulVest on social media sites and help recruit customers for XulVest to get referrals. College Ambassadors recruited from the local colleges and earn school credits.

What are investor entry and exit strategy?

This is a convertible debt round with a $600,000 valuation with 20% discount and 8% interest. Investors can participate by paying a minimum of $5. Investors can exit by converting to equity at a $200,000 equity financing round or upon sale of the company. If the note has converted then you are entitled to receive your investment and interest back.

What happens if I commit to invest in XulVest?

Thanks to technology, an email will be sent you with a link to where you can sign the Convertible Loan Agreement online and download your own copy afterwards as proof of investment.

Your email address will not be published. Required fields are marked *

3 comments

  • Peace Prisca Mberi

    For the mean time before you get registered to Depositors Protection Commission, how are we guaranteed that our investments are being taken into a scam??? What is the assurance that is given to the investors to be confident with the investment?

    May 14, 2018 at 10:29 am Reply

    • Mitchel Baka

      Thank you Peace. Unfortunately Funding portals do not affiliate with Depositors Protection Commission, they are registered with the Securities Exchange Commission and currently our commission in Zimbabwe is yet to recognise such portals and develop a regulatory system. We are also looking forward to their involvement in our Portal. However, all investors are going to be issued with a countersigned convertible loan agreement which binds and hold us accountable for your funds.

      Also no withdrawal or disbursements of funds will be carried out before we reach our minimum goal or campaigning days lapse.

      May 14, 2018 at 3:42 pm Reply

  • Mitchel Baka

    INVESTMENT UPDATE

    Be advised that you are not making a donation into XulVest as with the platform “Donate ” button. You are purchasing a Convertible Loan Note into XulVest and hence receive a convertible loan agreement from XulVest.

    May 14, 2018 at 10:49 am Reply

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