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The world of investments has often been restricted to a select few, with opportunities for high returns confined to the wealthiest and most connected individuals. This exclusivity has long kept retail investors—ordinary individuals—at bay. Tyke aims to break down these barriers by democratizing the investment space, providing retail investors access to opportunities that were previously available only to a small segment of the population. Through lower minimum investments and a user-friendly platform, Tyke opens the doors for a broader section of society to participate in startup investing while making it easier for founders to raise funds and build a community of engaged users.
Registering as a subscriber on Tyke is a straightforward process. All you need to do is sign up using your mobile number, verify it, and provide your first and last name. In just a few steps, you’re ready to start exploring investment opportunities.
Once you have completed the signup and created an account on the platform, you can explore various investment opportunities. Tyke provides detailed information about each opportunity to help you make informed decisions. After selecting a campaign, you can begin the subscription process. This involves reading and agreeing to the terms and conditions, transferring the money, and then sitting back to relax while your investment is processed.
The minimum subscription amount on Tyke starts at Rs. 5000, though this can vary depending on the specific campaign. The exact minimum amount for each campaign will be listed on the campaign page.
To complete the Know Your Customer (KYC) process on Tyke, you need a valid PAN card for identification purposes. Tyke attempts to fetch the required data automatically based on your mobile number and name. If needed, additional information may be requested for validation. Your bank account details will also need to be linked and validated.
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Early-stage or startup investments involve investing in companies that are still in the process of building their revenue models, growing their customer base, and scaling rapidly. These startups have significant growth potential and offer the opportunity to earn substantial returns. Historically, venture capital investments have outperformed traditional investments, with a study by the Thomson Reuters Venture Capital Research Index showing an annual return of 20.6% since 1996, compared to 7.5% for public equities and 5.9% for bonds.
Investing in startups offers several benefits beyond potential high returns. These include the opportunity to support future disruptors solving today’s problems, access to networking opportunities with other investors and founders, and the satisfaction of playing a role in the growth of innovative companies.
While the potential rewards are high, investing in startups comes with significant risks. Early-stage startups may struggle to find product-market fit or establish a market presence, and some may fail due to lack of funding, unsustainable margins, or insufficient market size.
Private placement refers to the sale of securities to a small number of investors rather than through a public offering. This is governed by Section 42 of the Companies Act 2013, which limits the number of investors to 200 in a financial year. The process includes issuing a private placement offer letter in Form PAS-4 to the selected investors.
A cap table details the ownership structure of a company, including the stakeholders, their respective stakes, and the valuation of each funding round. This is crucial for founders and investors to understand the impact of potential fundraising on ownership.
AIFs are pooled investment vehicles that invest in private equity, venture capital, or private debt. These funds can be structured as a body corporate, trust, or LLP, and are the only permissible vehicle for pooling funds from multiple investors as per SEBI regulations.
All investments on Tyke are direct investments in startups, not routed through an AIF. However, Tyke has partnered with an AIF to facilitate private fundraises for founders with their own list of investors, though these opportunities are not visible on the platform.
Any individual over 18 years with a valid PAN can subscribe to campaigns on Tyke. Non-individual entities like companies, partnership firms, LLPs, and HUFs can also subscribe after providing the necessary legal details during the KYC process.
Subscribers can transfer funds from their Tyke Pocket or via online and offline payment modes. For offline payments, detailed instructions are provided to ensure funds are correctly transferred to your Tyke Pocket.
The address used for KYC purposes will be the one on your address proof (e.g., Aadhar). However, you can edit your current address for communication purposes through your profile settings, where you can also update other details like email, mobile number, and bank account information.
Tyke reviews multiple aspects of a startup before allowing it to launch a campaign on the platform. These include financial statements, founder credentials, fundraising history, market position, and social media presence. Subscribers can find all open campaigns in the “Subscribe” section and contact startups through provided social media handles.
Subscribers can invest in multiple startups and diversify their portfolio. They can also subscribe multiple times to the same startup as long as the campaign is open, with each transaction meeting the minimum subscription amount.
To delete your account, contact Tyke support via email. The request will be processed, and the account will be deleted within 30 days.
A CSOP is a contractual agreement that entitles the subscriber to community benefits and potential Stock Appreciation Rights (SAR). Community benefits can include discounts, exclusive event access, beta testing opportunities, and brand ambassador roles.
SAR grants the right to receive value equivalent to the appreciation in the company’s value without issuing equity shares. This value can be settled by the company through cash or other incentives.
A discount cap protects early-stage investors by offering a discounted valuation in future funding rounds. A valuation cap sets a maximum valuation at which the subscription is valued, ensuring investors get more equity in high valuation scenarios.
CCDs are debentures that convert into equity shares at a predetermined date, offering hybrid benefits. CCPS provides fixed income until conversion into equity shares, determined at the time of issuance.
NCDs are secured debt instruments offering regular interest payments over a fixed tenure. They are regulated by the Companies Act 2013, requiring full security by the company’s assets and the appointment of a Debenture Trustee.
Tyke does not guarantee any returns on subscriptions. Returns can be realized through exits during mergers or acquisitions, buybacks, or sale of securities.
The tax implications for various instruments vary. For example, income from CSOPs is taxed as “Income from Other Sources,” while returns from CCDs and CCPSs are taxed as capital gains upon redemption. NCD interest is taxed based on the subscriber’s income tax slab, with TDS applicable under certain conditions.
This section highlights subscriptions from which future earnings are not expected due to the company’s operational status. Tyke provides timely updates on these subscriptions.
Subscribers can view annualized earnings and gain/loss calculations in their portfolio. “On Time” repayments indicate timely crediting of repayments, and details of closed subscriptions can be accessed through the portfolio.
For any issues such as e-signing problems or general queries, subscribers can contact Tyke support via email, Contact Us: [email protected]. The customer support team is available to assist with various concerns, from technical difficulties to subscription management.
Subscribers can cancel or reduce their subscriptions within 48 hours by contacting support. Refunds will be processed within 2-3 working days. However, cancellations in the final 48 hours of a campaign or for discounting campaigns are not permitted.
Payments should ideally be made from the registered bank account to avoid subscription rejection. Offline payments from other accounts will be rejected and credited back, ensuring compliance with regulations.
Tyke is revolutionizing the investment landscape by providing retail investors access to lucrative opportunities and simplifying the fundraising process for startups. By lowering entry barriers and offering a range of investment instruments, Tyke empowers ordinary investors to participate in the growth of innovative companies while fostering a vibrant community of engaged users and supporters. Through detailed information, user-friendly processes, and robust support, Tyke is set to democratize investments and drive the future of startup funding.
Tyke Invest is a platform that democratizes investment opportunities by providing retail investors access to opportunities that were previously available only to a select few. With lower minimum investment requirements, it allows a broader section of the population to participate in startup investments. Additionally, it makes it easier for founders to raise funds and create a community of engaged users.
To register, you need to sign up using your mobile number. After verifying your mobile number and providing your first and last name, your registration is complete.
After signing up and creating an account, you can explore investment opportunities on the platform. Detailed information about each opportunity is provided to help you make informed decisions. Once you decide to invest, you can subscribe to a campaign by reading the terms and conditions, signing the agreement, transferring the funds, and then waiting for the results.
The minimum subscription amount on Tyke starts at Rs. 5,000. However, this amount can vary for each campaign and will be specified on the campaign page.
A valid PAN card is required for identification purposes. Tyke will attempt to fetch the necessary data automatically based on your mobile number and name. If needed, additional information may be requested for validation, and your linked bank account details will also be verified.
Early-stage or startup investments refer to investing in startups that are in the process of building their revenue model, expanding their customer base, and scaling rapidly. These startups have high growth potential and offer the opportunity to earn significant returns.
Investing in startups offers several benefits beyond the potential for high returns, including the opportunity to support and evangelize future industry disruptors, and the chance to network with other early-stage investors and founders.
Yes, investing in startups can be risky as these businesses might still be trying to find a product-market fit or establish their market presence. Some startups may close down due to various reasons such as lack of funding, unsustainable margins, or insufficient market size.
Private placement is a funding round where securities are sold not through a public offering but through a private offering, usually to a small number of investors.
Private placement of securities is governed by Section 42 of the Companies Act, 2013. The maximum number of persons who can subscribe to a particular security in a financial year is 200. The company must offer its securities through a private placement offer letter in Form PAS-4.
A capitalization table is a document that details the breakdown of the ownership structure of a company, including information about each shareholder, their respective stakes, and the valuation at which each round of investment was raised.
As per SEBI regulations, an investor must satisfy the following criteria to invest in an AIF:
# Minimum investment of INR 1 crore (INR 25 lakhs for employees or directors of the AIF or its manager, or for those investing in an Angel Fund)
# Minimum lock-in period of 3 years
# Number of investors is restricted to 1,000 in a scheme (200 for Angel Funds)
No, all investments on Tyke are direct investments in startups. However, Tyke has partnered with an AIF for founders who want to facilitate a private fundraise with their own identified list of investors.
Yes, you can register as a company, partnership firm, LLP, or HUF. You need to provide all legal details of your organization during the KYC process.
Tyke’s team reviews several aspects of the startup before shortlisting it for the platform. These include financial statements, founder pedigree, fundraising history, market position and potential, and social media presence.