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

• 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 funds: Propel(x). collects investor funds in an escrow account and passes them to the company.
• Hubble Investments will invoice the startup for a percentage success fee, conditional upon the amount raised.

Updated on: 12/24/2020