Frequently asked questions for Entrepreneurs

Do startups pay fees to Jelix?

No. We are incentivised by our investors and returns on our own investments to cherry pick the startups most likely to produce great returns. We are rewarded when you perform well.

Does Jelix lead rounds?

Yes. Jelix usually leads investment rounds. We invest our own funds and invite other venture capital and angel investors to invest with us on the same terms. Jelix does not invest if it is the only investor.

At times, we co-invest with other highly respected venture capital funds (eg Airtree Ventures), including where they lead the round.

How long does the due diligence process take?

While this varies with the circumstances, we aim to complete the process in two to three weeks.

Does Jelix make introductions to other investors?

Once Jelix has agreed to lead a round, we introduce the investment opportunity to registered Jelix investors and, where appropriate, strategic investors including Australian and overseas venture capital funds.

What is an accredited ('sophisticated' or 'wholesale' in Australia) investor?

All Jelix investors must qualify as a sophisticated or wholesale investor in Australia or the equivalent in their country of residence. In Australia, investors must provide their current qualified accountant’s certificate certifying that they had a gross income of $250,000 or more in each of the previous two years or have net assets of at least $2.5 million.

Investors that are not residents in Australia must meet their country’s income, asset, and/or experience criteria.

What happens if the minimum amount is reached?

The round remains open until the offer period expires or the maximum amount is reached.

What happens if the minimum target amount is not reached?

All investor funds will be returned, unless investors (including Jelix) agree to proceed, knowing that the target amount has not been reached and that your company may not have sufficient funds to achieve your planned milestones.

How long does it take for funds to reach my account?

On agreeing terms and completing our due diligence, we will send an email alert to our investors inviting them to attend an in-person pitch by the founders and list the investment opportunity on our platform for up to 3 weeks. Once the investment opportunity is closed it should take two weeks to receive your funds.

Will my cap table be cluttered up with syndicate investors?

You may choose to use the Jelix Nominee to give you a single investor entity on your capitalisation table representing the entire Jelix syndicate. Too many investors on an early capitalisation table can be an impediment to future fund raising, and using the Jelix nominee structure helps to mitigate this risk.

However, a  direct investment is more likely to allow investors to take full advantage of the Australian ESIC tax benefits.  This can make the investment more attractive to investors.  In this case, Jelix syndicate investors sign an investment management agreement authorising Jelix to represent the investors in relation to the investment: Jelix exercises their voting rights and manages investor communications for you so you only have a single investor to deal with.