Question 1

What do investors pay to participate in offerings on Propel(x)?

Accepted Answer

On brokered offerings, investors can choose to invest either directly or can invest as part of a Syndicate.

Direct Investments are subject to a one-time 2% platform fee.

Syndicate Investments are subject to a one-time 7.5% platform fee. If the investment generates a return, the Syndicate pays 10% carry upon exit to Propel(x). Advisors LLC, a subsidiary wholly owned by Propel(x). Inc and registered as a venture capital firm in California.

Question 2

Is there an investment minimum or maximum?

Accepted Answer

Startups set the minimum direct investment check size that they will take from individual investors. Investors can invest as little as $5,000 into companies through Propel(x). Syndicates. We do not set maximum investment limits.

Question 3

How do I exit from an investment?

Accepted Answer

You may exit your investment by selling your stake – in case the startup is acquired or goes public. If there is another Accredited Investor willing to buy your stock, per SEC Rule 144, you may also exit your investment by selling your stock privately, so long as you have held your stock for at least a year and are not an “affiliate” of the company (i.e., you are neither an officer of the company nor a shareholder with a greater than 10% stake in the company).The price at which you can sell your stock in such a private transaction may be less than the price you originally paid.

Please keep in mind that Investments in startups are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

Question 4

How does the Propel(x) Deal Evaluation Process work?

Accepted Answer

Propel(x). has created a shared deal evaluation process to supplement your own diligence. This allows investors to engage in Q&A directly with startup management, customers, scientific advisors, and external expert contributors.

We are the only platform that actively involves external experts to contribute evaluation insights. Any investor can also refer expert(s) from their own network – you not only become an active contributor to the evaluation process, you can also benefit from other investors’ networks. Additionally, Propel(x). has a growing roster of acclaimed industry thought leaders as expert resources for all investors.

Here is how the process works: you can find specific dates for each phase in the Evaluation Timeline or the Calendar Section of each startup profile

Phase I: Ask Questions (7 days) In this phase, investors can submit questions intended for management, customers, scientific advisors, and external experts. Investors can also refer their own experts. You can take these actions under the “Evaluation” tab or in the Deal Profile sidebar.

Phase II: Collect Responses (10-14 days): Propel(x). sends the questions collected in Phase I to relevant respondents, i.e. Management questions go to the startup CEO, Expert questions go to external experts and so on. In this phase, respondents will be busy answering your questions. You will be able to view submitted questions under the “Evaluation” tab, but cannot add more questions.

**Phase III: View Results

Question 5

How does the Propel(x) process work after a startup is published on our website?

Accepted Answer

Propel(x). uses a rigorous screening process when deciding which companies are invited to list on the platform.
Startup applications are screened and curated on the basis of certain criteria, many of which are described here.
Hubble Investments, LLC, a Propel(x). affiliate, reviews the deal profile, approves a deal for listing and starts the Indication of Interest Phase.
Propel(x). then announces the deal to the entire investor base
Every startup goes through an Evaluation process.
Propel(x). collects indications of interest concurrently until it hits a threshold of $35K in direct investments, or $100,000 in total investments (direct & syndicate) to trigger Broker Review.
Hubble Investments conducts a Broker Review on the startup. Propel(x). will only open the deal for investments if this review is successfully completed.
Propel(x). opens the deal for direct investments (and syndicate investments if the syndicate threshold has already been met) and will continue to send out deal-specific information to interested investors and via email.
Investors can make commitments and sign documents online. The minimum to invest in any deal is $5,000 per investor.
Propel(x). aggregates all investor commitments lower than the direct investment minimum check size (as set by the startup) and invests as a single investor in the startup through a syndicate.
The pooled investment vehicle is triggered when combined direct and syndicate commitments hit $100,000.
Flow of f

Question 6

What are the benefits of a Syndicates to investors?

Accepted Answer

Investors benefit by increased diversification across numerous startups. Since Syndicates allow investment minimums as low as $5,000, investors can expand a given amount of capital across a portfolio of multiple startups. In addition, Propel(x). Syndicates will be managed by Propel(x). – so investors are assured of timely communications and updates from startups received via Propel(x).

Please keep in mind that all Private Placement investments, whether through a syndicate or direct, are speculative and illiquid. All investments bear the risk of partial or complete loss of capital. There is no guarantee that an investment will be profitable.

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