Frequently Asked Questions

Getting Started

What is Infinyte Insider?

Infinyte Insider is a platform that makes investing into exclusive, high-growth opportunities a breeze. Through robust tech that works in sync with complex regulatory requirements, startup investments are now as easy as sending money via UPI!

How do I gain access to Infinyte insider?

We are currently invite-only. Get an existing member to vouch for you, or join the waitlist to sneak in early!

What can I do on Infinyte Insider?

All our members get first dibs to invest in startups, an opportunity previously reserved to only a chosen few.

I have a concern not listed here.

Our team loves looking for answers. Drop a note on [email protected] with your concern, and the finest Avengers will be on it right away.

Question 7

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using 'Content here, content here', making it look like readable English.

Question 8

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using 'Content here, content here', making it look like readable English.

Question 9

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using 'Content here, content here', making it look like readable English.

SHOW MORE
SHOW LESS
Angel Investors

Who is eligible to invest via Infinyte Insider?

We’d love to make this accessible to just about anyone interested, but the law of the land states that only an “Eligible Angel Investor” can invest in startups as an asset class.

Who is an “Eligible Angel Investor”?

For an individual investor, one needs to have net tangible assets of at least INR 2 crore excluding the value of his/her principal residence and who:

  • has early stage investment experience, or
  • has experience as a serial entrepreneur, or
  • is a senior management professional with at least 10 years of experience

A body corporate (LLP, Company) needs to have a minimum net worth of INR 10 crore to qualify.

How are the deals facilitated through Infinyte Insider?

All startup investments on Infinyte Insider are facilitated through a SEBI-registered angel fund.

For each investment, a separate investment scheme is created. If we were to get technical, when you invest through the platform, you receive “units” in a particular scheme of the Angel fund, representing your investment in the startup.

Can NRIs invest in opportunities listed on Infinyte Insider?

Yes! All opportunities on the platform are accessible to NRIs with a valid PAN (mandatory) and other required KYC documents.

As an NRI, what is the best way to transfer money to India?

While you can use a bank account maintained in your country of residence or an Non-Resident External (NRE) Account, we’d recommend using a Non-Resident Ordinary (NRO) account to ease the compliance burden involved.

How much should I invest?

Given the obvious lack of liquidity, it is advisable to keep your investments spread across different startups for the best possible outcome. TL;DR: Don’t keep all your eggs in one basket. Portfolio diversification ftw!

Are there restrictions on how much I can invest in a single startup?

The sky’s the limit for us, but the law of the land states that an Angel investor can only invest a maximum of ₹10 crore in a single startup.

Can I invest in startups with different stages of funding, or is it limited to seed rounds?

Late stage or early, opportunities on the platform are Infinyte.

What are the charges for investing via Infinyte Insider?

While Infinyte Club makes no money through platform fees, a transaction fee of 1.77% is charged by the Angel fund on each startup investment made.

This fee is added to the total on the payments page and the absolute value can be viewed in the breakdown.

In case you are an NRI investing via any payment mode barring an NRO account, you’d be charged an additional ₹2,500 per transaction for RBI compliances.

investor Registration and KYC

How do I sign up on Infinyte Insider?

Easy! Enter your name, email address and phone number, and you are in. We do have verification checks in place to keep the impersonators out!

Can I start investing as soon as I sign up?

To start investing, you will need to complete two additional steps:

  • Self-declaration that you fulfill accreditation/angel investor criteria to invest in startups
  • KYC and bank account verification

What does the KYC verification process involve?

3 steps are all it takes.

  • Provide your PAN card details
  • Verify name and permanent residence address
  • Enter and verify bank account details

Is there a limit to the number of bank accounts I can use?

You have to use the same bank account during the verification process that you are going to use during transactions.

Can a business entity (LLP, Partnership, Private Limited) invest via Infinyte Insider?

Of course! If your business entity satisfies the “Eligible Angel Investor” criteria as per government regulations, it only needs to complete a simple KYC and bank account verification to get started.

Pre-Investment

Is there a minimum investment amount?

The minimum investment amount is unique to each opportunity listed on Infinyte Insider.

How do I evaluate an investment opportunity?

We have made it easy for you to browse through important details including the founder pitch, the team, and other notable investors. Each opportunity is unique, and we suggest you undertake proper diligence before investing in any opportunity.

A few questions to ask yourself before you invest:

Does this fit into my broad portfolio strategy?
Is this startup operating in an area I thoroughly understand?
Am I allocating too much of my money in similar companies?

The answers to these should guide you in evaluating and making an informed decision.

What is the process of investing via Infinyte Insider?

Once you have assessed an opportunity using all the information you may need at your fingertips, all you need to do is follow a simple, three-step process:

Commit > eSign documents > Make the payment!

What are the different modes of payment available to an investor?

We currently only allow payments via direct wire transfer. This means adding a beneficiary and transferring the money via net banking or your bank’s mobile application.

Don’t fret - we are working with our partners and will have a payment gateway up on the app soon.

Post-Investment

How do I track and monitor my investments?

All your investments can be found under the “Profile” tab, detailing how much you have invested, the units you hold and if there has been any change to the value of your investment. We’d love to see this section lit up!

When will I receive my units?

Made an investment? Firstly, congratulations on the momentous decision!

Second, do note it can take up to two weeks for all legal formalities to be completed, post which, you will receive a digital proof and the unit certificate of the Angel fund, representing your investment in the startup.

When will my returns be paid?

Startup investments are inherently long-term, with an average time frame of 5-8 years!

If that number surprises you, this is probably not meant to be.

In fact, we’d go on to state that such investments carry incredible risk (wasn’t it obvious with all that self-accreditation we put investors through?!) and may not always align with investor expectations.

Can I pull back my investments?

There’s always room for error.

Once you have made a payment, you have up to 48 hours to drop us a note ([email protected]) and tell us if you would like to pull back your investment. Post this time frame, we don’t allow any exceptions.

What this also means is that if an opportunity is open for less than 48 hours on the platform, the pullback option won’t apply.

When dropping us that email, do mention the reason behind the pullback.

Can a startup disallow my investment?

Yes. Although rare, we do allow startups to disallow specific investments as per their discretion.

In case this happens, we’d refund your investment back to the original payment source.

What is the minimum lock-in period for any investment?

Any investment in startups by an Angel fund is subject to a minimum lock-in period of one year.

Taxes

What are the tax implications of investing in startups via Infinyte Insider?

Under the (Indian) Income-tax Act, 1961, Angel Funds have been accorded tax pass through status in respect of all incomes (except business income), i.e. investors are subject to tax in the same nature and same proportion as if they had directly invested in the portfolio companies.

Accordingly, no tax is withheld on the income received by our Angel Fund from the portfolio companies.

There is a 10% withholding tax at the time of the Fund making payments to resident investors and at ‘rates in force’ for non-resident investors which the investors can claim credit for while filing their tax returns.

Infinyte Club is not qualified to provide any tax advice. There could be some exceptions to the general tax provisions stated above, so please be sure to consult your tax advisor and accountant before making an investment.

Founders

How does Infinyte Insider help founders?

Access and ease; our tech is designed to make the fundraising process as simple as it gets.

Be it reducing your time on jargon-filled paperwork to unlocking access to some of the best Angels out there, Insider does for founders what we wish someone had done for us.

It’s a problem close to our hearts, and we are solving it in the best way possible!

What funding instrument should I opt for?

We recommend only legally compliant funding instruments such as Equity shares, CCPS, CCDs, and CNs.

Founders should seek advice from their advisors on the choice of instruments relevant to their fundraise.

Is my startup eligible to raise funds via Infinyte Insider?

Is your startup registered as an Indian company and recognised by the Department for Promotion of Industry and Internal Trade (DPIIT)?

Hop right on!

Can you help me with compliances and closing my fundraise too?

We have a network of partner firms to help you out so you don’t have to spend weeks on closing! Instead, focus on what you know best: build!

How can I register my startup for a fundraise on Infinyte Insider?

We’re glad you have decided to raise funds via Infinyte Insider. To start the registration process, drop us a note to [email protected] and our team will take care of the rest!

Do you charge founders for raising via the platform?

Nope, jump onto the bandwagon and start raising!

How is Infinyte Insider different from other fundraising platforms?

We pride ourselves on being founder-first in our approach.

  • All investments are consolidated into a single vehicle (SEBI-registered Angel Fund), which translates to a single line on the startup’s cap table
  • Our systems are built on tech that simplifies regulatory requirements, giving founders a frictionless experience so they can focus on what matters most: building
  • We help you save taxes! Raising capital through Infinyte Club benefits startups since the investment received by the startup is exempt from tax under Section 56 of the (Indian) Income-tax Act, 1961 (‘Angel Tax’) which could otherwise apply in certain situations if an investor invests directly into the company.

The Angel Tax is levied on the startup on the capital invested, if it receives funding at a valuation which is more than the fair market valuation derived as per the (Indian) Income Tax Act, 1961 and will be treated as ‘income’.

Alumni Networks

How does Infinyte Insider help alumni networks foster entrepreneurship?

With easy-to-use tools and a robust infrastructure to seamlessly complete a fundraise, Insider helps you avoid the hassle of going through tons of paperwork, making the entire process a breeze. Focus on what matters most, while we do the rest! 🙂

If you have an alumni network ready to invest in your idea, we have the platform to make the entire process a walk in the park.

We're here to help you cross the finish line too. Our network of partner firms can assist with closure of a fundraise process including related compliances.

Can I register my alumni network on the platform?

Of course! Drop a note to [email protected] and the team will take care of the rest!

SHOW MORE
SHOW LESS
Syndicates

Can I create my own Syndicate on Infinyte Insider?

Absolutely!

We cater to, and have created tools to help you build and maintain your own private Syndicate on our platform. However, do note that the feature of adding public limited partners (LPs) is not currently available.

Are my deals private?

Yes. All your deals can only be shared privately with your LPs.

What are the terms of investing through a Syndicate?

As it currently stands, all syndicate deals happen on an invite-only basis.

The terms of investments vary, with the lead investor deciding and announcing the terms such as Carry, minimum investment amount and lock-in periods.

How do I benefit from setting up my Syndicate on Infinyte club?

Apart from getting access to the coolest and easiest way to invest, you mean?

We don’t charge any upfront registration fee, and have no carry in the deals brought in. Best in the market by a mile, really, not just merely better.

How do you ensure my deals are not being front-run?

At Infinyte, we are building a new future where we want to do things differently. We want to do better.

As a matter of policy, we (Infinyte, our employees, the Angel Fund) do not front-run any deal that you facilitate through us. Sufficient measures are taken to protect your deals.

It’s your deal, and you hold the keys.

Secondaries

Who can invest in secondary deals?

The good news is that while there's no stringent qualification needed for participation, our platform is tailored exclusively for such late-stage deals and isn't available to the broader public. We primarily serve investors keen on gaining exposure to private equity, especially those with a foundational grasp of investing in start-ups. This ensures our members are well aware of the complexities and potential risks of diving into the private equity realm.

Please note:
Secondaries of early-stage to mid-stage start-ups may require an investor to satisfy the following eligibility criteria :

For an individual investor, one needs to have net tangible assets of at least INR 2 crore excluding the value of his/her principal residence and who:

  • has early-stage investment experience, or
  • has experience as a serial entrepreneur, or
  • is a senior management professional with at least 10 years of experience

A body corporate (LLP, Company) needs to have a minimum net worth of INR 10 crore to qualify.

Can a business entity (LLP, Partnership, private limited company) invest?

Of course! If your business entity satisfies the eligibility criteria you can invest.

Can a Non-resident Investor participate in secondary deals?

We are currently working on provisions to accommodate NRIs. However, you can still register your commitment, and we'll notify you as soon as we have an update.

How am I assured about the financial viability of the company I am looking to invest in? Does Infinyte do any due diligence while listing a startup on its platform?

We handpick companies that have successfully completed their Series A fundraising round-up to those that have achieved Unicorn status. It's worth noting that these enterprises are typically backed by top-tier VCs and Private Equity Firms who conduct rigorous and thorough due diligence prior to their investment. As a platform, IC does not engage in this due diligence process. Consequently, we urge you to proceed with caution and conduct your own research before making an investment

How do I evaluate an investment opportunity?

We have made it easy for you to browse through important details including the founder pitch, the team, and other notable investors. Each opportunity is unique, and we suggest you undertake proper diligence before investing in any opportunity.

A few questions to ask yourself before you invest:

  • Does this fit into my broad portfolio strategy?
  • Is this startup operating in an area I thoroughly understand?
  • Am I allocating too much of my money in similar companies?

If the answer to any of these comes up naught, you should think again.

How do I get more information on the Company?

IC will list curated secondary deals on its platform and would provide investors with comprehensive Investment Memo/deck and FAQs capturing necessary information helping in making decisions.

However, in case of any further questions you can write us to [email protected]

How much can I Invest?

There will be a minimum ticket size per investor decided on a deal-to-deal basis.

What are the terms of investment?

Investment terms can differ from one deal to another as may be consented by the investor. However, it's essential to understand that the securities provided will strictly encompass economic benefits and specific statutory rights.

What does my commitment represent?

Your commitment to a deal indicates your interest in investing in the specified startups. This commitment can be adjusted once IC provides the finalized terms and conditions of the deal.

What are the next steps after committing to investment?

Our team consolidates commitments from all investors and finalizes the deal terms with startups.

Within a few weeks, we will reach out to you with detailed next steps, guiding you through the process, documentation, and timeline.

Is there any transaction execution risk?

Infinyte Club facilitates secondary deals approved by founders. This approach minimizes execution risks and enhances reliability.

What is the process for investing?

Once commitments are finalized with the start-up, we will notify you with next steps. We've streamlined the process into four easy steps, as outlined below:

  • Register on our platform, followed by KYC and bank verification.
  • Complete the necessary investment documentation.
  • Transfer money to SPV through Escrow
  • Acquire units of the SPV, which in turn will buy shares in identified startups.

Please note that investors will receive units of SPV which will have direct exposure to shares in the identified Company.

What is the typical time frame to complete the secondary deal?

Once we've secured the final commitments from all investors, it typically takes us 4 to 5 weeks to execute the transaction.

Can I pull back my investments?

There’s always room for error.

Once you have made a payment, you have up to 48 hours to drop us a note ([email protected]) and tell us if you would like to pull back your investment. Post this time frame, we don’t allow any exceptions.

When dropping us that email, do mention the reason behind the pullback.

Can a startup disallow my investment?

Yes. Although rare, we do allow startups to disallow specific investments at their discretion.

In case this happens, we’d refund your invested money back to the original payment source.

How long is the average investment duration for secondary investments ?

Secondary investments are inherently long-term, with an average time frame of 4-5 years!

If that number surprises you, this is probably not meant to be.

In fact, we’d go on to state that such investments carry certain risk and may not always align with investor expectations.

What are the liquidity event/exit options available to investors?

Investments in startups are highly illiquid. Exit opportunities are typically tied to specific liquidity events, such as strategic M&A (Mergers and Acquisitions), IPO (Initial Public Offering), and other scenarios as outlined in the definitive documents.

What measures are in place to ensure my protection as an investor?

Our platform operates on basic principles of investor protection and we assure the same as follows:

  • Investment structure is legally compliant and vetted by top legal firms of the country.
  • The investment structure has a SEBI-authorized body overlooking your transaction from the moment you infuse funds till the consummation of your investment and exit events.

What is the tax implication on exit?

Under the (Indian) Income-tax Act, 1961, investors are subject to tax in the same nature and same proportion as if they had directly invested in the portfolio companies considering that the SPV will be a pass-through.

There may be tax implications on exit depending on whether the sale involves short-term or long-term capital gain. We shall recommend you to check with your tax consultants on the same.

If there's anything still tickling your brain, slide into our inbox. We've got the answers on standby!

CAN'T FIND SOMETHING ?
Reach out to us