If you want to raise money from a larger group of investors for your business, project, or investment fund, you need a brochure. This outlines the main points of what you’re investing in and what the financial or social return on that investment is.
In addition to the brochure, you must always prepare a formal prospectus, information document, or Key Investment Information Sheet, which contains more detailed information about the investment and the risks involved.
My name is Alfred Griffioen. For over 20 years, I have been writing proposals and offers for business acquisitions. I am happy to help you present your company in the best possible way while remaining honest.
Difference between an investment pitch and an investment brochure
If you need to give a presentation to an individual investor or a group of professional investors (like in Dragon’s Den), you need a short presentation of about 10 to 12 slides with a fixed structure. Various templates for this are available on the internet. The key is to present all your information and figures in outline form at once, as these people look purposefully and immediately determine whether you are interesting to them or not.
An investment brochure is more geared towards an audience that does not invest (often). It contains more text, and the reader is guided more through the importance of the project or the market opportunities of the company. The figures and returns are mentioned, but not always substantiated in depth. Risks are indicated, but often with a solution or nuance added. The investment brochure is often less factual but more narrative and should be written in a particularly fluid and logical manner.
AFM information document or Key Investment Information Sheet (KIIS)
The AFM is the Dutch Financial Markets Authority that has issued guidelines for investment funds and crowdfunding.
Only if you want to raise more than 5 million euros in a year do you need to write a prospectus that is approved by the AFM. Below that amount, you need an AFM information document or Key Investment Information Sheet (KIIS).
- The KIIS is required if you raise money through a crowdfunding platform or if it concerns an investment fund.
- In all other cases, you need an AFM information document.
Both differ somewhat in structure but contain at least information about:
- The issuing entity: which issues the shares, certificates, or other rights;
- The offering entity: which sells the securities to the public. This can be the same as the issuing entity;
- The directors of these entity(ies);What the money is used for and what return you can expect;
- Whether there are any additional costs;
- What the main risks are.
It may feel strange, but it is important to identify as many risks as possible and be honest about everything. If you don’t, and a new risk does occur, you as a director can be held accountable for it.
Crowdfunding marketing in the Netherlands
Offering an investment is very different from selling a product or service. The target audience is generally smaller (people who have money available) and it’s also about presenting opportunities and risks.
Here too, you need to create a separate marketing plan.
- With which specific target group do you have the best chance?
- How do you get in contact with them? For a local initiative, flyers through the mailbox can be very effective.
- What is your primary message? Do you focus on the financial return or the social return?
- What call-to-action and follow-up do you have?
- How do you ensure that people start talking about your initiative and turn investors into ambassadors?
Precisely because of the smaller target group and the somewhat more business-like decision, this is very similar to business-to-business marketing. And here too, it’s important to start on time. Even where you see investments on crowdfunding platforms being fully subscribed within a day, this is only because the marketing started months earlier and most investors have already been approached and convinced.
Legal set-up of your investment fund
There are different ways in the Netherlands to structure the participation of a larger group of investors. Since shares need to be transferred through a public notary, this is not the most ideal. Certificates of shares are a better option, but only if structured in the right way: the standard way through a Dutch STAK may cause you problems when you want to sell the company. There are also contractual ways to let investors participate in the growing value of your initiative. Profit sharing is one of them, but I can consult you on any alternatives.
If you have any questions, please call or email me: Alfred Griffioen, +31 6 2477 6865 or alfred@winstdelen.com. I’m happy to answer you in English.