Basically, there are three different ways to get involved, depending on the investment amount you are considering:
1. With a 1,000 - 20,000 EUR investment you can extend a profit participating loan. This equates to a profit share that will run over a minimum period of seven years. If at the end of that seven year period we are still making a profit, you will receive a minimum guaranteed return of 200% of your original investment.
2. With a 20,000 - 50,000 EUR investment you can elect to become a silent partner – this is a company share – typically without voting rights but one where you can participate in losses if you wish. This option is attractive, if you would like to write off your investment against taxes.
3. With a 50,000 - 350,000 EUR investment you can elect to receive full company shares which include voting rights and loss participation.
The reason we are staggering investment sums in this way is that in Germany, giving out company shares is tightly regulated. That means that in any investment round, taking on silent partners or company partners means that either the number of participating investors is limited to a maximum of ten people, or that the total investment amount is limited to 100,000 EUR.
Since we need 350,000 EUR in this round, we have to divide that sum among a maximum of ten investors. That is why the minimum investment amounts for silent partners and company shares are relatively high. However, if we kept it lower, we would have no chance of reaching our target.
For profit participating loans, this restriction does not exist. That is why we can accept smaller investments in this form. If you choose to invest in a profit share, you can exit after seven years, on the 4th January 2021, with a minimum guaranteed return of 200% of your original investment, provided we are still making a profit. Of course, if we make more money, which is what what we expect, you will receive a profit share that reflects your investment amount. These shares may be diluted in subsequent investment rounds but when the company takes on additional capital, the value of the company also increases proportionally. This means that the value of your share remains unchanged.
Therefore, after seven years, a share value of 1,000 EUR will return a guaranteed 2,000 EUR but likely quite a bit more, depending on how much profit we manage to generate over that time period. Similarly, in the case of a buyout, you will participate in the profit generated from the exit in the same way that you participate in profits generated from other income.
Of course, investing always bears the risk to loose all invested funds. That risk does exist with all our investment options.
By the way: If you pledge money on our website, you do not enter into a binding agreement. You are simply expressing an interest in investing. We are working on the contractual details at the moment and will send you a proper agreement to look over before you actually commit to anything.
Your investment will be made in the form of a subordinated profit participating loan. As an investor, this will allow you to share in the project in more than one way. If in any given year “Professor S.” makes a profit, you will receive a share. Income potential is created as follows:
1. You will receive a share in the economic success of the project, which you can claim by terminating your investor agreement after the minimum investment period has expired (the so-called “Bonus interest after Termination”).
2. You will receive a share from the profit from an exit event (the so-called “Bonus interest from exit event”), for example if a lion share of the project is sold to another investor.
The subordinated profit participating loan makes it possible to collect larger amounts in any given investment round. In Germany, crowd funding rounds with silent partnership investments are limited to a total of 100,000 EUR per investment round. Since our funding goal in this round is 350,000 EUR, this is not an option for us. Your position in the case of an exit event, for example when an investor buys up the majority of the shares in the project, is precisely defined in your investor agreement. In return, your investment will be governed by a standard dilution clause going forward. That means that if, after an investment in the first round, your investment ratio is 0.1%, it is possible that, after a second round of investment, your ratio drops to 0,09%. However, that does not diminish the value of your investment. When “Professor S.” takes up new capital, the investment ratio drops proportionally to the increase of the underlying value of the project. Therefore, the value of your investment remains unchanged.
No annual interest will be applied to your investment. However, the real yield potential of the subordinated profit participating loan lies either in your share of the economic success of “Professor S.” after the minimum investment period has expired (the so-called “Bonus interest after Termination”) or your share from the profit from an exit event (the so-called “Bonus interest from exit event”).
You can profit from your investment in more than one way: apart from the knowledge that you are supporting an innovative young company, with an early stage investment in “Professor S.” you also enjoy the possibility of high returns. You share in the profit distributions of “Professor S.” proportionally to the value of your investment. Furthermore, you share in the long term economic success of “Professor S.”
An investment in the form of a subordinated profit participating loan does not afford you legally binding voting rights in “Professor S.” However, as an investor you can communicate with us and can therefore actively contribute to “Professor S.” To that end, we will create an online forum to which you will have exclusive access. We are looking forward to your messages, recommendations and feedback and are very open to criticism.
Your rights of information are defined in your investor agreement: LudInc GmbH is obliged to send you quarterly financial statements of “Professor S.” at the end of the months of April, July and October in addition to a yearly project report at the end of January.
An investment in the form of a subordinated profit participating loan is a risk investment which means that it is possible to lose your entire investment.
Your address is required to draft the investor agreement between you and LudInc GmbH. Your tax ID is required to process the tax associated with your investment correctly and will solely be used for that purpose. Your bank details are required to enable us to pay profit payments and investment returns directly into your bank account. We treat all your personal information strictly confidential and will never publish, nor pass on your details to a third party. We will only use your details for the administration of your investment.
You can pay by bank transfer (LudInc GmbH, Commerzbank Berlin West, IBAN: DE25100400000302117700, BIC /SWIFT: COBADEFFXXX) or by PayPal to buha@ludinc.net.
Please do not make a payment before the contract with us has been finalised. You will receive the contract details after you have proposed an investment via our website on http://ludinc.de/timetravel.
Yes, an investment from abroad is possible.
The minimum term of your investment is seven years. After that term, you can end your agreement annually according to the terms in your investor agreement. LudInc GmbH reserves the right to terminate the agreement after seven years, provided, that we will pay your minimum guaranteed return of 200% of your initial investment.
If you have any further questions, please write us at: invest@ludinc.de
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