Question 1

What are the risks of investing in private companies?

Accepted Answer

It’s important to understand the risks of investing in private companies:

These are illiquid investments and your capital may be locked up for long periods of time
These are risky investments and you may lose part or all of your holdings
There is often limited information available to investors, as the companies are private and are not required to share information

Question 2

How does Tioex work?

Accepted Answer

Tioex allows members to purchase secondary shares of privately held companies. Tioex also allows shareholders in private companies to sell their shares to Tioex members.

Visit How Tioex Works to learn more.

Question 3

How do I invest with Tioex?

Accepted Answer

The first step to investing with Tioex is becoming a member.

Visit the Invest page to learn more about the process of investing with Tioex.

Question 4

How does Tioex choose the companies it invests with?

Accepted Answer

While every investment case is slightly different, we generally look for VC-backed companies with a defined business and strong possibility for an exit.

Visit How Tioex Works to learn more.

Question 5

What is the typical performance on venture capital investment?

Accepted Answer

About 2/3 of all early-stage VC investments generate a loss (based on US data). But the possible upside is very high:

For the remaining 1/3, the return is on average three times the investment paid
For about 1.5%, the return is higher than 20 times the paid-in investment

These top-performing companies drive average annual return on investment much higher. In total, the average ROI for early stage VC’s is around 20%.

You can learn more about venture capital in the Nordics here.

Question 6

What is the minimum amount required to invest with Tioex?

Accepted Answer

The minimum investment level varies depending on the opportunity, but is generally around SEK 50,000.

Question 7

How much does it cost to use Tioex?

Accepted Answer

There are no fees to join Tioex or to invest in opportunities with us. In the event of an exit, investing members first recoup their initial investment. If there is profit beyond that, Tioex receives 20% of the overall amount.

Question 8

What investor information can I expect to find about opportunities listed through Tioex?

Accepted Answer

Privately held companies are not required to disclose the same types of information as public companies. Though Tioex may have access to confidential information about business performance, we are not allowed to publish these materials to our members. Instead, all presented material and descriptions are sourced from public information to ensure that we follow all necessary legal requirements.

Question 9

Can I just buy shares of private startups directly from the companies?

Accepted Answer

Private companies are by their nature protectionist. Direct investments usually cannot take place below a minimum size of a couple of million kroner.

Question 10

Is Tioex a venture capital fund?

Accepted Answer

No. All investments are made by our members and Tioex partners.

Question 11

Does Tioex make or lead direct investments in startups?

Accepted Answer

No.

Question 12

Is Tioex a financial/tax/legal advisor?

Accepted Answer

No.

Frequently asked questions