Frequently Asked Questions:
We will be addressing the following questions in this FAQ, if we did not address your question here, please contact us directly.
- "What is DunRobin?"
- "How Does DunRobin Work?"
- "What is an Accredited Investor?"
- "What are DunRobin's Fees?"
- "How do I Transfer my Money?"
- "What Risks are Involved?"
- "What are the Investment Terms?"
- "What are the Funding Maximums and Minimums?"
- "What are the Investor Eligibility Requirements?"
- "How do we Find and Select our Opportunities?"
- "When will my Returns be Realized?"
- "How do I track my Investments?"
1) What is DunRobin?
DunRobin is more than a crowdfunding platform, its a collaborative community of entrepreneurs, angel investors, and venture capitalists who find and fund great startups in the Midwest.
2) How does it Work?
Participating in the DunRobin community is simple. Find out how it works here.
3) What is an Accredited Investor?
The SEC defines an Accredited Investor as a person who either:
1) Has an individual income of $200,000 or a household income of $300,000 in each of the last two years and an expectation for that to continue;
2) Have a net worth of $1,000,000 individually or jointly with your spouse, including your retirement savings but excluding your primary residence.
4) What are the Fees?
DunRobin only makes money when investment opportunities perform. There are no fees to join the DunRobin community. Each investment opportunity will have a management fee to cover the costs of maintaining the investment, and a “carry” which is a percentage of the profits. Each investment opportunity will clearly state the associated management fee and carry percentages
5) How do I Transfer my Money to DunRobin?
Funds can be transferred through our online portal through an ACH transfer, or it can be done offline via wire transfer from your bank.
6) What Risks are Involved?
Investing in startups is inherently risky as many startups fail, and investments may not retain their value. At DunRobin, we do everything in our power to reduce the risk level by conducting diligence on each company, providing resources, and providing guidance. However, this does not eliminate the risk and any investment could be significantly devalued at any time.
7) What are the Investment Terms?
There are two sets of terms to consider. First, the investment terms, which are the terms in which the fund will invest in the target startup. These terms will list a pre-money valuation, a security type, the amount being raise, the amount allocated to DunRobin, and a number of other details.
Second is the funding terms, which include the fees associated with the fund management itself. These terms vary from opportunity to opportunity and include a management fee and a carry. Follow this link for more information on our fees.
8) What are the Investment Maximums and Minimums?
Investment minimums vary for each investment opportunity and range from $2,500 to $10,000. Currently we do not have listed investment maximums outside of the fund term sheet limits that vary from investment to investment.
9) What are the Investor Eligibility Requirements?
The only requirements to join DunRobin as an investor is to meet the SEC Accredited Investor Standards
10) How do we Find and Select our Opportunities?
To source our opportunities, we look to our network and our connections with some of the best universities in the world, including the University of Illinois in Champaign Urbana, the University of Chicago, and Northwestern University. If you would like to submit your company, please fill out our company application.
Next we assess each company on each of five areas: the Founding Team, the Idea, the Market, Current Traction, and the Competitive Landscape. If a startup has a large strength in one of these areas, and very few weaknesses, we begin our preliminary commercial due diligence. If the company passes our preliminary diligence we measure interest from our investor network. You can see these companies listed under “Upcoming Deals”.
If we receive enough interest for the startup we begin our deep dive diligence, which look at legal, market, customers, pipeline, and the founding team. Find out more about our [diligence process here]. If the company passes that level of scrutiny, we open the startup to investment.
11) When will Returns be Realized?
The nature of investing in startups is that the investments are not publicly traded nor do they typically have active secondary markets. Returns will be realized at the time of an exit, which will be when the company gets acquired, the company IPOs, or DunRobin finds a buyer of the security.
Investment lengths typically range from 4 to 7 years, but can go much longer than that if an opportunity to exit the investment does not appear.
12) How do I Track my Investments?
We provide an up-to-date portfolio summary within the investor Dashboard. Investors can view the value of each of his or her investments and get updates on the status of the underlying startup.