Qnetic is seeking investment, which is open to everyone in Qnetic's network through equity crowdfunding. This is a where the general public—not only professional investors—are able to back early-stage startups, which presents a very exciting opportunity for both you and Qnetic.
Qnetic is an early-stage and high-risk investment where the product and market are not yet proven, and it will take many years to see if Qnetic will be successful. It will also rely on mitigation of many risk-factors.
The market is growing exponentially and we expect that many different technologies will be deployed to solve humanity’s energy problem. We believe that Qnetic will be one of these many, but how large Qnetic’s market can be is impossible to predict. With the market being so large and growing so fast, if we can succeed to make a popular product, the sales opportunity is immense.
We at Qnetic sincerely believe in our mission and are excited and eager to make it a reality. We invite you to participate!
—What is ‘equity crowdfunding’?
In 2016 in the USA, a new law was passed that allowed an innovative way for investments to be made in early-stage private companies—those that are not on the stock market—using a similar model to KickStarter and Indiegogo.
Companies advertise their funding requirements and company plans on a website, and a ‘crowd’ of dozens or even hundreds of investors can make relatively small investments that combine to meet the investment goal. Qnetic is using a platform called WeFunder to do this.
WeFunder allows both experienced, professional ‘angel’ investors or general retail investors to participate, but there are restrictions on how much you can invest, based on your declared personal wealth. Qnetic is also limited to raise US$5MM a year this way.
Europe passed similar laws in 2021 and there is now a large number of equity crowdfunding platforms around the world, all with slightly different rules and characteristics. WeFunder is the best fit for Qnetic, as well as the world’s biggest and oldest.
—Why is Qnetic doing crowdfunding rather than using angels or venture capitalists?
Qnetic is regularly speaking with Angels and VCs but these discussions have a very long timeline for making connections, having discussions and doing due diligence and legals, which means we don't expect to receive cash from professional investment until Q2 or Q3 in 2023. Our equity crowdfunding campaign is already launched and the company could begin receiving and using cash productively in Q1 2023. This speed is the first reason.
The second reason is that it means Qnetic builds a ‘crowd’. If you participate, you will be joining a group of people who want the company to succeed, who will help to promote Qnetic’s name and best interests in the coming years.
Thirdly, the platform is very flexible, where Qnetic can return to raise more money later if the first raise is successful. Also the terms are defined by Qnetic and we stay in full control of the company—if we receive investment from angels or VCs, then they will set the terms of the deal and will also want some control over Qnetic.
—What is the risk of losing all my money?
Statistically, the risk of Qnetic failing is very high: 90% of start-ups fail over time. If this happens, you will lose all of your investment, just like the founders. Please do not invest in Qnetic if:
—Losing all your investment has a material affect on you
—Your time-horizon is shorter than 5 years
—What happens after I participate?
The value of any investment increases or decreases based on the value of the company. A company’s value will initially be defined by the price paid for each share at later investment round. If a company is sold or partially sold in the future, the value of an investment will be defined by the price the buyer is willing to pay for the company. Investors should only expect to see a return if a company is sold (or partially sold). There is no planned or predicted date for this event for Qnetic, and you will have no influence over it.
Qnetic has the desire to identify a ‘secondary market’ platform where shares can be bought and sold in a similar way to the stock market but this is very uncertain since these markets are immature.