In this installment of our ongoing Platform Spotlight series, we give you a look under the hood of our investment platform to reveal why investors choose Propel(x).
Through our interactions with 3,500+ accredited investor members, the following are the key benefits of joining the Propel(x) platform.
- Portfolio diversification using alternative investments.
- Curated deal flow of investment opportunities.
- The confidence that comes with using a registered broker dealer for offerings managed by Hubble Investments LLC, a fully owned affiliate of Propel(x).
- Investor protection through licensing and regulation applicable to offerings managed by Hubble Investments.
- Comprehensive due diligence.
- Affordable investment minimums.
- Investment syndicates managed in-house.
- Trusted alternative investment partner.
- Extensive network.
- Knowledge resources.
- Opportunity to make a difference.
Let’s take a look at these 11 benefits in more detail.
1. Portfolio diversification using alternative investments
The rise of alternative investments and the greater accessibility provided by alternative investment platforms such as Propel(x) provides investors with the opportunity to rethink the traditional approach to structuring an investment portfolio. Many investors and financial advisors limit their options by only considering stocks, bonds, and cash in their investment portfolio. Alternative investments provide options for portfolio diversification by asset allocation to access the potential high-growth opportunity of alternative investments.
Propel(x) offers investment opportunities in startup companies, either through direct investments or through a syndicate investment via a Special Purpose Vehicle (SPV). Also coming soon to the Propel(x) platform are opportunities for Venture Capital fund and hedge fund investments. Stay tuned for updates on these upcoming opportunities.
2. Curated deal flow of investment opportunities
Investing in startup companies can be a challenging undertaking for some investors. The rise of crowdfunding platforms that have minimal regulatory oversight means many startup investment opportunities are presented to investors with little due diligence. Propel(x) has a deal review team who thoroughly review and vet every opportunity that comes to us, giving investors confidence that the deals presented on our platform have been through a comprehensive due diligence process. Investors can access opportunities from our network of leading venture capital firms, accelerators, and distinguished co-investors.
Propel(x) member investor Mariano Troccoli says:
“I love the combination of hard science and high-quality deals, which is supported by an active base of experts and investors. Overall, Propel(x) is not only a great platform to have access to deals but also to connect with like-minded investors and technologists.” *
3. The confidence that comes with using a registered broker dealer
Certain offerings posted on the Propel(x) platform are offered by Hubble Investments LLC, which is a fully owned affiliate of Propel(x) and is an SEC (U.S. Securities and Exchange Commission) registered broker dealer and FINRA (Financial Industry Regulatory Authority) member. This means that those offering comply with rules and regulations of a broker dealer.
4. Investor protection through licensing and regulation
Propel(x) understands the importance of investor protection. Our fully owned broker dealer affiliate Hubble Investments is a member of FINRA and the Securities Investor Protection Corporation (SIPC). Offerings by Hubble Investments are regulated, and comply with the SEC’s “regulation best interest” rules, which means we are obligated to put the best interests of our customers ahead of our own when we present opportunities for any securities transaction or investment.
5. Comprehensive due diligence
Through the collective experience and knowledge of our team, Propel(x) has a deep understanding of the importance of due diligence. For every offering on our platform, we follow a comprehensive review process comprising the following steps:
- Industry due diligence, which refers to the big picture and involves understanding the industry, identifying the incumbent players in the market, ascertaining the competitors, establishing the competitive advantage, conducting research, and assessing the potential chances of success.
- Legal and corporate due diligence, which involves a detailed investigation of the company, the founders, contracts, corporate structure, product, compliance, the offering, and more.
- Every deal is reviewed by legal counsel.
In the interests of transparency, we share our due diligence reports with investors.
6. Affordable investment minimums
We understand that not all investors are alike and recognize that different people have different investment resources and objectives. That’s why we provide flexible investment options with affordable investment minimums. We cater to:
- Institutional investors and high net worth individuals who may invest directly in amounts that might exceed $100,000.
- Individual accredited investors who may group together and invest via a syndicate, allowing for individual investments starting from just $5,000.
7. Investment syndicates managed in-house
Propel(x) enables investors to participate in startup investments by investing via a syndicate in manageable amounts, which can be as little as $5,000. To provide this service for its members, Propel(x) has a wholly owned subsidiary called Planck Fund Management Corporation. It is an Exempt Reporting Adviser responsible for creating and managing syndicate investments and is the manager of all the Propel(x) Special Purpose Vehicles (SPVs) that invest in startups.
8. Trusted alternative investment partner
When it comes to alternative investing, trust is a valuable commodity. Propel(x) has built a reputation for integrity and diligence that allows us to source quality deals from experienced, capable founders and offer those opportunities to investors on our investment platform. Our comprehensive service covers all aspects of the startup investing process, making us a trusted partner connecting founders and investors.
Propel(x) member investor Christopher Gutek says:
“I appreciate the consistently high quality, professionally vetted deal flow across a diverse set of sectors and stages. The team at Propel(x) is also very responsive, organized and diligent. And relative to investing in a venture fund, Propel(x) offers an opportunity to self-select the deals that are most interesting to me, yet at about half the front end fees and back end carry of a traditional venture fund, all without giving up the professional screening of deals that a venture fund offers.” *
9. Extensive network
Forging the connection between founders and investors is a critical element of startup investing. With deep industry experience and a long history, Propel(x) has an extensive network of more than 3,400 accredited investor members and a consistent flow of investment opportunities from our community of startups. With more than $2 billion in cumulative funds raised by featured startups on and off the Propel(x) platform, we have the network and track record to effectively facilitate early round capital raising.
10. Knowledge resources
We firmly believe in the old saying that “Knowledge is Power”, because we understand that optimal results only come from a solid foundation that is built on education and understanding. We are committed to providing our community of investors with an extensive set of resources structured to build knowledge around alternative investing. Our resources include video interviews with founders and investors, our podcast, blog, messages from our CEO, deal spotlights, platform spotlights, and portfolio updates.
11. Opportunity to make a difference
The Global Impact Investing Network says:
“Impact investments are investments made with the intention to generate positive, measurable social and environmental impact alongside a financial return.”
Investing in startups gives angel investors the opportunity to make a difference in an area that has meaning for that individual. Choosing to invest in a startup can help bring to market a product or service with the potential to make a positive impact on the world.
Propel(x) member investor Likoebe Maruping says:
“I value and continue to use Propel(x) as the main platform for identifying investment opportunities because it aligns very well with my mission driven focus to identify founders who are using the power of technology to address the big challenges that we face. Whether it is climate change or dealing with issues around health and well-being.” *
So, there you have it. We hope you enjoyed this insight into the 11 key benefits of the Propel(x) investment platform and look forward to connecting with you on your alternative investing journey.
If you’re interested in building your portfolio by adding investments in startups, you can find more information here on how to start angel investing and how to find opportunities for angel investing on the Propel(x) platform.
* This testimonial may not be representative of other customers and is no guarantee of future performance or success.
This article is for informational purposes only. We do not provide legal, financial, or tax advice and investors should consult their advisors prior to making any investment. As with any investment, past performance is no guarantee of future performance, and any investment decision must balance the risk against the potential return. Private investments are highly illiquid and risky and are not suitable for all investors. There is no guarantee that a liquidity event will ever take place.
This article contains links to third-party websites. These links are provided solely as a convenience to you and do not imply an affiliation, sponsorship, endorsement, approval, investigation, verification, or monitoring by us of the contents on such third-party websites. We are not responsible for the content of any website owned by a third party and do not guarantee the accuracy, timeliness, completeness, suitability, reliability, or usefulness of any information.