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 leads investment rounds. We invest our own funds in the company itself, inviting other venture capital and angel investors to invest with us on the same terms. Jelix does not invest if it is the only investor.

How long does the due diligence process take?

While this varies with the circumstances, we aim to complete the process in two 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 including, where appropriate, strategic investors including Australian and overseas venture capital funds.

What is a sophisticated or wholesale 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 you may not have sufficient funds to achieve your planned milestones.

Will my cap table be cluttered up with syndicate investors?

Jelix investors will usually invest by way of single legal entity to promote a ‘clean’ capitalisation table. However, depending on the circumstances they may invest directly to allow investors to take full advantage of the ESIC tax benefits.  This makes the investment more attractive to investors.  However, all investors are accredited which removes some of the cap table issues that can arise and importantly, Jelix syndicate investors sign an investment management agreement with Jelix authorising it to represent the investor in relation to the investment. So even if we are not able to invest by way of a single legal entity, this creates a single touch point for the startup so you do not have to wrangle a large number of investors, removing what is sometimes viewed as a practical impediment to future funding rounds.