FREQUENTLY ASKED QUESTIONS
1. How does POD facilitate fundraising?
POD connects promising startups with Angel investors, HNIs and VCs among others. The value-add POD brings is ensuring all startups are vetted by a world-class team. Once this clearance happens, the startups are allowed to make their business pitch to potential investors. And if the investors find potential in the startups, they can choose to invest in them in return for equity.
2. Who can be an investor on POD?
Any Indian citizen who is 21 years of age and above and has a significant understanding/knowledge of investment and its risk can be an investor on POD.
3. What is the minimum amount of investment one can start with?
The minimum amount one can invest through POD is ₹20,000/-. The maximum limit for Non-accredited investors is ₹2.5L. And for the Accredited investors, the maximum limit is 10% of their Net Value.,
4. How does the entire process of fundraising work on POD?
Startup Onboarding
- Onboarding: As the first step, a startup founder is asked to share the relevant details about his business and other KYC requirements. These details are collected through a form and sent to the team for vetting and due diligence.
- Due diligence: The team verifies all the business details, vets KYC etc. to ensure that the information submitted by the startup is legitimate. Only after this will the startup be launched on POD.
- Fundraising Campaign: Once the startup clears the vetting process, a fundraising campaign with a specific goal amount is launched on POD.
Investor Onboarding
- Investor Onboarding: Once the investor finds a startup that's aligned with their vision and interest, they can go right ahead and invest with a single click. Different modes of payment are available for investors to choose from.
- Investor Assessment: Investors have to answer a questionnaire to verify their understanding of investment risks.
- KYC Verification: Once the KYC of the investor is successfully verified, they will be onboarded on POD and get access to choose from a range of startups to invest in.
Investment and Fund/share transfer
- Investments: Once the investor finds a startup that's aligned with their vision and interest, they can go right ahead and invest with a single click. Different modes of payment are available for investors to choose from.
- Campaign Status: When an investor invests in a startup, the funds remain in POD's Escrow account. If the startup reaches its funding goal, the amount is transferred to the startup. If not, the funds will be refunded to the investor.
- End of Campaign: Funds are transferred to a startup if it reaches its funding goal. If not, a refund is initiated to the investor. Post this, the campaign is marked as closed.
5. How much does POD charge for each Investment done through it?
As of now, POD levies no commission from investors on their investment made through the platform. The primary focus is to create a reliable and transparent ecosystem for startups to raise funds in India.
6. What kind of startups can one find on POD?
POD lists hand-weighted startups from verticals ranging across Tech, Fintech, Social Entrepreneurship, Lifestyle and even those offering SaaS. Startups need to be in existence for at least 6 months and show significant month over month growth to fall in the initial listing criteria on POD.
7. What does the "All or Nothing" model do?
When a startup reaches its funding goal, we transfer the amount received from the investor to the startup's account. However, if a startup fails to reach the set target of its goal, it is unlikely that they can act on their proposed business plan. Hence, to protect the investor, the raised funds are refunded. So either a startup receives 100% of the funds raised when it reaches its goal, or nothing at all when it fails to. This is what the “All or Nothing” model does.
8. How liquid will my investment be in a startup?
Since there is no platform or exchange body where securities of startups trade or can sell out, your investment remains highly illiquid. You get to take an exit only on the occurrence of events like LBO/ M&A/ IPO or at the time of selling or winding up of the company
9. How can Investors track the progress of the startups they invested in?
Investors can log in to their Dashboard and access all the details from the Portfolio section on POD, including the progress of the funded campaigns.
10. Will the Team at POD also offer advice on how to yield the maximum return on investments? Or point an investor towards the most promising startups?
We, at POD, take full responsibility to provide our investors with all startup related information which will enable them to make an informed decision. However, we are impartial to startups on our platform and do not take sides. The investors are liable for all their investment choices, and POD will steer clear of any advisory services at all times.
POD is owned by Crowdpouch Ventures Services Private Limited and reserves all rights to the assets, content, services, information, and products and graphics in the website but third party content. Crowdpouch does not solicit, advertise, market any of the users registered with POD, neither does it solicit investors by offering leagues/schemes/competitions etc. related to securities markets. POD hereby clarifies that it does not carry any resemblance to the stock exchange nor does it facilitate trading of securities nor does it act like a broker/agent/media for raising funds. Investment through POD does not carry rights of renunciation. Investors are cautioned that POD operates in an unregulated space hence, investment through POD is subject to investment risk. Investments in startups are highly illiquid.
