Invest Smartly in Private Markets by Tackling these Challenges
While platforms like Kristal.AI democratise access and make it possible for individuals like you and me to invest in pre-IPO companies and high-growth startups; you must educate yourself about private markets.
As opposed to public markets investing in private markets is characterized by the following challenges:
Lack of Information
Private companies arenโt required to publicly disclose financial statements this can make it difficult to gain clarity about the company
Since thereโs a lack of information there is also no way to validate how well the company is really doing and to completely vet the company in which youโre investing
Larger Cheque Sizes
The quantum of investments required to qualify for this type of investment has been pretty high and has until now only been available to institutional investors due to this reason
Market Opaqueness
Since the shares of the company arenโt traded publicly on the stock market it can be difficult to find sellers and information on the sellers
If you donโt know who the seller is then you canโt do legal due diligence on them and determine whether they are reliable or not
Price Discovery
Every investment is attractive but at a certain price level; The private market being a seller driven market, shares trade at different prices with different sellers which makes it difficult to ascertain the right price for an investment
Structural Complexities
There are many layers between the investor and the company in which you are investing, and it is often difficult to understand what the investment process can look like from an investor standpoint
For example, understanding the process of investing directly into a company versus investing via a single layer or dual layer Special Purpose Vehicle (SPV) can be difficult to understand as an individual
Different assets are located in different jurisdictions and therefore, governed by different laws, which becomes important to understand as companies look to list in the stock market as these laws impact your exit
While these opportunities are available, who can you rely upon to guide you through the process reliably? Not to worry, there are a few platforms that donโt just provide access but conduct a high level of curation on the product to ensure reliable investments.
Kristal.ai is one such platform. Kristal Private Market brings 4 key propositions to make your investments in private markets easy and safe!
1. Kristal Assurance
Every private deal listed on the platform is extensively researched and analysed, and is approved by the IC Committee to enable only quality investments
Thorough due diligence of the supply partner and/or seller is undertaken to establish required comfort before engaging in any transaction and to remove the opaqueness surrounding sellers in the market
All assets (like Automation Anywhere or BYJUโs) undergo a pricing approval process to ensure any deal is launched at fair value to provide for an effective investment opportunity for investors.
2. Kristal Care
Kristal.AI also establishes active engagement with clients to resolve any queries or concerns about the offering/asset to make sure you understand all the processes surrounding the investment in addition to understanding the asset. Thereby, enabling you to make an informed and independent decision.
3. Kristal Access
The platformโs vast network of buyers and sellers ensures better access and liquidity at any point in time and makes sure that youโre investing in companies only at the right price
Kristalโs network of sellers also enables access to companies across various geographies, sectors, and industries
4. Kristal Simplicity
The platformโs high end technology ensures you can unlock access and liquidity with ease
With a dashboard customized to your portfolio, showcasing investment opportunities relevant and interesting to you; Kristal ensures that your investment experience is better with every click
Want to start investing in pre IPO companies and high growth startups in a reliable and hassle free environment?
We encourage our India investors to use a financial guide. Kristal does not charge any additional fees for investing through them.
In case you already have a guide, we will try to bring them onboard. In case not, we can recommend one of our qualified partners to advise you through the journey.
This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (โActโ), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.
An Accredited Investor is an individual
Whose net personal assets exceed in value SGD 2 million (or itโs equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or itโs equivalent in a foreign currency), or
Whose income in the preceding 12 months is not less than SGD 300,000 (or itโs equivalent in a foreign currency)
I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.