Frequently asked questions

Introduction

What is LEVA?
LEVA is a fintech company developing technological solutions to make fundraising easier, faster, and more efficient.
What is a co-investment?

A co-investment is an investment made alongside a deal manager. The investment opportunity is sourced by the deal manager and shared with his co-investors.

Each co-investor independently decides whether he wants to participate in the opportunity or not: co-investments are considered individual investment decisions and are not advised by the deal manager.

Co-investments are passive investments in which co-investors follow a lead: deal terms are often pre-determined and not open to negotiation.

What is LEVA’s syndicate platform?

Deal managers can offer co-investment opportunities to their private network of investors leveraging LEVA as a back office tool to manage their deals across the entire fundraising and investing journey.

Leva digitized the whole value chain, allowing deal managers to:

  • Set up a deal in minutes
  • Sort out the legal documentation automatically
  • Get commitments from investors
  • Save time and money thanks to automation
  • Save time and money thanks to digitalization
  • Easily monetize their deal flow

How does it work

Who is holding the shares of the target company after the deal is done?
The target company's shares are held by the deal manager on the account of the syndicate. Co-investors are assured of their economical rights in the Partnership Agreement.
Does LEVA set up SPVs?

No, LEVA designed a partnership structure that allows the deal manager to keep pace with the fast-moving VC industry and set up different deals with a quick, automated, and digital solution. While SPVs are costly and may take weeks to be set up, LEVA’s pooling structure is cost-effective and is instantly set up. Compared to other pooling vehicles, such as SPVs, LEVA’s syndicate has many advantages:

  • No need to incorporate a legal entity
  • No formal accounting needed
  • Faster and digital set up
  • Easy follow-on round management
Who shows up in the share ledger when pooling with LEVA?
The share ledger shows only one entry per syndicate. The entry is made in the name of the deal manager.
How is my data handled?

This is how LEVA stores and handles the data:

  • LEVA stores most of its collected personal data in Switzerland, on servers of a Swiss cloud service provider. When this is not possible, due to the location of partnered data processors, data is stored and processed in the EU.
  • Any personal data collected by LEVA is contained behind secured networks and is only accessible by a limited number of employees who have special access rights to such systems and are bound by obligations of confidentiality.

Please read our Privacy Policy and Cookie Policy for more information.

Who is signing investment documents (e.g. Shareholders' Agreement, Investment Agreement, Convertible Loan Agreement, etc.)?
The deal manager signs the investment documents on the account of the syndicate.

Regulation & Taxes

Is there a maximum number of investors that can participate in the partnership?
No
Is LEVA regulated?
LEVA is a member of the self-regulatory organization (SRO) Verein für Qualitätssicherung von Finanzdienstleistungen (VQF), which is officially recognized, regulated, and supervised by FINMA.
Is the partnership an incorporated company?
No, the partnership is not incorporated and has no legal personality. The partnership is governed by the Partnership Agreement, the legal agreement defining the rules of the partnership between the investors and the deal manager (it is similar to a shareholders’ agreement).
What happens to the partnership if LEVA ceases to exist?
Since LEVA is not a member of the syndicate, the partnership is safe, even if in unlikely case that LEVA ceases to exist.
How are capital gains taxed in the partnership?
For Switzerland, LEVA received a cantonal tax ruling, confirming that the partnership is not a taxable subject. Therefore, the tax status of the investors is not changed by being part of the partnership. Merely investing in a partnership does not automatically make a foreign investor a tax subject in Switzerland.
Are investments made through LEVA legally enforceable?
Yes, all investment contracts generated by LEVA are enforceable by Swiss law just like any other contract.
Which investment currencies does LEVA support?
Currently, LEVA supports transactions in Swiss Francs, Euros, British Pounds, and U.S. Dollars. If you would require a different currency, please reach out to  support@levamail.com with the details.

Who can use LEVA

Can non-qualified investors invest through LEVA?
From a Swiss perspective, non-qualified investors can participate in deals on LEVA. Nevertheless, it is up to the deal manager to verify if there are any additional restrictions based on the jurisdiction in which the target company or the investors are based.
Who can be a deal manager on LEVA?
Any legal entity or individual person, who has reached legal maturity. Furthermore, the deal manager shall not be incapacitated, overindebted, insolvent or bankrupt.
Who can invest through LEVA?
From a Swiss perspective and provided that the KYC/AML checks were approved, LEVA can onboard anyone except deal managers and investors with a U.S. Person-Status (for details, you should consult the IRS website), Afghanistan, Burundi, Central African Republic, Cuba, Democratic Republic of Congo, State of Eritrea, Ethiopia, Iran, Iraq, Laos, Libyan Arab Jamahiriya, Myanmar, Korea (North Korea), Palestine State, Pakistan, and Somalia.

Nevertheless, it is up to the deal manager to verify if there are any additional restrictions based on the jurisdiction in which the target company, the investors, or the deal manager himself/herself/itself are based.

Do you have more questions

Here are our contact details
Please contact us at support@levamail.com