Invest and Own a Piece of a Successful Online Business
Flippa Invest provides US based accredited investors with unique opportunities to invest in thriving, healthy and growing online businesses.
Are you a business owner looking to raise capital? Apply here.
Predicted returns based on Flippa’s Index.
Share in the growth of the platform economy.
Connect with the business owner and invest in something you believe in
Why Flippa Invest?
With Flippa Invest, we open up access to a private network of growing businesses. These opportunities are exclusive to Flippa and available to accredited investors.
We’re talking, established, fast growing and revenue generating eCommerce and SaaS businesses. Each of these businesses has a planned exit strategy and the offer is limited to a small number of investors. Investors take an equity position in the online business, facilitated by a Special Purpose Vehicle (SPV).
Who Can Invest?
Flippa Invest opportunities are only available to Accredited investors who are residents of the United States. Prior to investment all investors will be required to complete an accredited investor check on the Assure platform.
How Does it Work?
- Flippa qualifies and works with business owners to list investment opportunities on the Flippa platform.
- Business owners nominate a minimum investment, target raise amount, equity on offer, pre money valuation and a proposed close date.
- Flippa uses a proprietary matching feature to connect relevant business owners with relevant investors.
- Interested investors can review opportunities and connect directly with business owners to discuss opportunities.
- Investors who make a commitment to invest will then be asked to go through an accredited investor check including completing a profile and accredited investor check – Rule 506(c).
- Once the minimum target raise amount is reached, Assure (Manager) in partnership with Flippa, will setup a Special Purpose Vehicle Agreement (SPV), and execute a Security or Unit Purchase Agreement to purchase the agreed units from the target company.
- The raised funds (minus any applicable fees) are then transferred to the target company.
- Flippa maintains a connected ‘page’ showcasing insights and updates providing near real-time updates back to investor.
- Assure completes the required annual K-1 tax forms for the relevant businesses.
- You own a piece of a online business!
In Partnership With Assure
Flippa has partnered with Assure, the leading SPV provider for private investments. Assure will handle the creation, compliance, ongoing tax preparations and filings plus liquidation and exit.
Getting Started Is Easy
STEP 1
Browse Investment Opportunities
Explore a diverse range of investment opportunities and click through to view the pitch, comprehensive information and financial insights.
STEP 2
Enquire and Discuss With The Business Owner
Flippa Invest allows investors to enter directly into discussion with the business owner or key company representative. This is a unique feature that allows you to ask specific questions, negotiate or develop a bespoke deal with the founders. Coming soon is the ability to schedule a video meeting in the deal room.
STEP 3
Invest Via a Trusted Platform
Found the perfect opportunity and ready to invest? Select ‘Invest Now’ and complete the required steps on the trusted Assure platform.
Investor FAQs
Does Flippa recommend investments?
No, Flippa does not endorse or recommend investment opportunities. Flippa provides the platform for you to connect directly with the founders of these firms as well as organises the relevant Special Purpose Vehicle setup so that you can invest in opportunities.
How do I complete my accredited investor verification and is my personal information secure?
Assure.co is our Special Purpose Vehicle (SPV) provider. In order to invest in the SPV, Identification, Know Your Customers (KYC) and Accredited Investor 506(c) checks must be completed. Assure.co will administer these checks to all investors on their proprietary platform (Assure Glassboard) prior to investment. Your privacy is of the utmost importance to Flippa. Assure administers over 14,000 SPVs and their privacy policy and fund administration & Compliance <https://www.assure.co/other-services/compliance> details can be found in the relevant links.
What is an accredited investor?
An accredited investor is any investor meeting criteria determined by the SEC under Rule 501.
You must meet one or more of the following criteria:
- Had income exceeding $200,000, or income with spouse (or spousal equivalent) exceeding $300,000, each of the past two years and expect the same this year.
- Have individual net worth, or joint net worth with my spouse (or spousal equivalent), that exceeds $1 million.
- Invest on behalf of an entity with at least $5 million in assets or an entity in which all of the owners are accredited investors (e.g. a venture capital fund, LLC).
- Invest on behalf of an entity with at least $5 million in assets or an entity in which all of the owners are accredited investors (e.g. a venture capital fund, LLC).
- Invest on behalf of an entity with at least $5 million in assets or an entity in which all of the owners are accredited investors (e.g. a venture capital fund, LLC).
- Currently hold one of the following FINRA administered licences: Series 7, Series 65, or Series 82.
Regulation D Offerings
Opportunities on the Flippa platform are offered under Regulation D of Federal Securities Law. Learn More here: (https://www.investor.gov/intr…gulation-d-offerings)
Who is Assure.co?
Assure.co are a leading provider of Special Purpose Vehicles (SPVs). The US based company has a solid track record and history in this space, no other provider has completed more SPVs or private transactions (14,000+) and that is why Flippa has chosen to work with Assure.co to power Flippa Invest.
What is an SPV?
“A Special Purpose Vehicle/Entity (“SPV”) is a business entity that has a special limited purpose. SPVs are often created to protect assets and separate liabilities of a parent or subsidiary company. Each SPV, which may share the same managing and sponsoring entity (an “SPV Organizer”), has its own operating structure, ownership structure, balance sheet, and is financially independent of any other SPV with the same SPV Organizer. While an SPV can be any entity type, they are usually either a limited liability company (LLC) or a limited partnership (LP).
An Assure SPV allows investors to pool funds into an SPV, allowing this investment vehicle to acquire and manage a specific asset (or multiple assets). Assure’s SPV product is a simple and flexible way to structure an investment fund.”
What are the fees?
Admin Fee
The escrowed admin fee is 1% per annum payable upfront for seven years. If the SPV lifetime is shorter than seven years, then the difference is refunded to investors. This equates to a 7% fee on top of the subscription amount.
Example: The minimum investment of $25,000 would require a total subscription amount of $26,750 + (any applicable blue sky fees).
SPV Setup fee
$10,500 SPV set up fee. Once all closings are complete, the Capital Account Statements will take into account SPV set up expenses that investors occur pro rata based on their commitment in the SPV.
The SPV has a maximum lifetime of 7 years and will need to be renewed after this period.
Carry
10% payable on the net capital gain of the SPV upon liquidation or an exit event.
How do returns on investment work?
Returns to investors are comprised of two components
- A capital gain on the exit of the company in a liquidity event such as a sale or buyout.
- Distributions or dividends from the company.
If a target company is opting to pay dividends this will be outlined in the investment memorandum pitch slides. Most investment opportunities on Flippa have an exit strategy in place and this is the most common method of return for investors. Typical exits are sale of a company on a platform like Flippa, buyout of a particular shareholding or initial public offering (IPO) or a management buyout of the SPV.
What documents do I need to sign to invest?
Private Placement Memorandum is a disclosure document given to investors for their investment consideration.
A PPM will highlight terms such as the offering itself, the price of the securities, management team, tax implications and other regulatory disclosures.
Subscription Agreement is a synopsis of the terms of the entire PPM and outlines the contract between the issuing company and the investor. The agreement will outline the terms of the offering and the securities being sold.
Sample documents can be downloaded from Invest listing pages.
What happens after I invest?
After you invest, Flippa will continue to maintain the listing page active except that it will be hidden from Google Search, Flippa Search and made private. This provides a simple way for Founders / Company representatives and investors to communicate with each other on their investments.
Disclaimer
This website (this “Site”) is owned and maintained by Flippa Pty Ltd. Neither Flippa Pty Ltd. nor Flippa Inc. (“Flippa”) are registered broker-dealers, and neither provides investment advice, endorsement, analysis or recommendations with respect to any securities. All securities of companies listed here are being offered by, and all information included on this Site is the responsibility of, the applicable issuer of such securities.
Flippa does not make investment recommendations and no communication, through this Site or in any other medium should be construed as a recommendation for any security offered on or off this investment platform. Investment opportunities posted on this Site are private placements of securities that are not publicly traded, involve a high degree of risk, may lose value, are subject to holding period requirements and are intended for investors who do not need a liquid investment. Past performance is not indicative of future results. Investors must be able to afford the loss of their entire investment. Only qualified investors, which may be restricted to only Accredited Investors or non-U.S. persons, may invest in offerings posted on this Site.
Neither Flippa nor any entity managed or advised by Flippa, or any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy or completeness of any information on this Site or the use of information on this site. Offers to sell securities can only be made through official offering documents that contain important information about the investment and the issuers, including risks. Investors should carefully read the offering documents. Investors should conduct their own due diligence and are encouraged to consult with their tax, legal and financial advisors.
Flippa has reviewed but makes no assurance as to the completeness or accuracy of any such information. Investments in private companies are particularly risky and may result in total loss of invested capital. Past performance of a security or a company does not guarantee future results or returns.
The investments (regardless of the nature of such investment) offered on the Flippa platform or on any other platform directly related to or affiliated with Flippa have not and will not be registered under the U.S. Securities Act of 1933 (or with any state, or non-U.S. securities authority) and are offered pursuant to exemptions therefrom.
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