Q3. In what ways can I contribute in addition to investing capital?
There are many ways, like:
- You can contribute in the current portfolio companies - multiple possibilities exist in various business functions like Sales & Marketing, Finance & Accounting, Business Analysis, Compliance, etc. If you have expertise in an area, we will find a way to make use of it.
- You can bring your Idea and build on it with the group's expertise. Of course, we would like to see your 100% commitment into any initiative that you propose.
- You can bring suitable investors from your network, and earn sweat-equity when a new investor referred by joins 7Avenues.
Q4. What are the reasons that even though I want to invest, 7Avenues does not want to include me in the group?
We evaluate each new member-investor for the benefit of all stakeholders. Our intent is to expand the network but sometimes it is just not the right fit. Here are some of the possible reasons:
- You do not understand the risks and hence want some assurance of returns, which no form of equity participation can provide. So it is important that we transparently let you know the risks associated in a business and that we are not a Fixed deposit account.
- We look for long term commitment and consistency. Hence, we also look for your ability to give that, and not financially. We have seen members go through financial ups and downs (leading to default) and they have stood by the company and we have stood by them. Note that you can still continue to get equity without investing. All it needs is a commitment to the cause.
- We think that you are taking undue financial commitment/exposure. We will tell you if this is the case, and will ask you to stay in touch so that we could suggest other ways of contribution to you.7Avenues insists that you do not take undue exposure. It goes back to understanding risks and self financial planning.
- You are looking to invest X and expect services worth 10X. We are a growing organization and our team's bandwidth is often stretched by the business growth needs. We have a large group of investors to serve, and we can not afford to give a significant part of our effort to any one investor. Hence, we request such investors to come back in a year or two, when we have a dedicated full-time Investor Relations team.
Q5. What type of shares do I get?
We are allotting only ‘normal’ shares with no special rights/ category for any shareholder. You will receive the same.
Q6. How are the shares priced?
There is one share price for all investors at any given time. So everyone, including company founders, make investments with the same share price. We revise the share price every quarter based on the business KPIs achieved and the Fair Market Value of our ventures. It is communicated every quarter to the investors. As we grow in size our risks decrease. Our approach is to have a larger group of investors rather than seeking larger capital from a few wealthy investors. It is a network driven approach. Therefore, as of now, the share price is being maintained lower than the fair market value of our portofolio companies because we want to offer promoterp-like shares to all our current investors. Over the coming quarters, the difference between then fair market value share price and offered share price will be removed. Contact us for the latest share pricing.
Q7. What if I default on my investment schedule due to some reason?
It's okay - you can invest later. But that will be at the ongoing share price. Please understand that irregular investments affect our cash flow planning and may also force us to fill the gap with costlier short-term funds or delay our growth projects- hence impacting our business value. So please plan as much as possible and avoid such scenarios, and if you must postpone/cancel your planned investment, then you would need to inform us at least a month in advance.
Q8. What information and reports will I get once I am an investor?
- You will have access to our Investor Login area, where you can see your shares (Capital and Sweat Equity) and their transactions.
- You will have access to our Member Blog, where we share monthly, quarterly, and annual reports, and telecon recordings.
- You will have access to our Member Egroup, where we share business and market updates as they happen.
Q9. Can I see the detailed reports of the Operating companies?
Yes, but after we are comfortable with you as a serious potential investor. Also note that our operating companies e.g. 7to9 retail may be having investors other than 7Avenues. The information before being published has to be finalized with all equity holders. 7Avenues members will get all the details. For each Operating co, we have a few members who will sit on the board from 7Avenues. And they will get all the information along with fulltime 7Avenues team.
Q10. Can I bring in new members from my network? How?
Yes. But we would like to speak with anyone before they join to describe what 7Avenues does and what to expect from each other. Our members have access to specific information and collateral, which they can share with potential investors. And they receive full support from our core team in such discussions.
For more information, please read the information and presentation shared on our
Investors page.
