how-it-works-investors

How it works for investors.

The ISOB site is intended for registered investors, which comply with one or more of the definitions of the first schedule of the Israeli Securities Law 5728 (1968), ("Accredited Investors").

The ISOB site connects investors with Israeli startups and high growth companies. Investors registered on the ISOB platform are able to invest in unique business opportunities listed on the ISOB website through a comprehensive, efficient and quick process.
Accredited Investors interested in exploring investment opportunities on ISOB can get access to information only after registering and joining the ISOB potential investors database as Accredited Investors. Registration as an accredited investor is upon self-declaration and representation by the investor of compliance with provisions of the Securities Law ("Accredited Investor") and providing ISOB and the entity raising capital a validating confirmation of this statement as required by ISOB and / or the startup.
 
Registration for inclusion in the ISOB database of potential investors is free and at no obligation. 


 
   
 

 
  •  


     Step 1  Registration 
     
    • Registering as an Accredited Investor on the ISOB website is easy and fast.
    • During Site registration, the potential investor must provide personal details and investment preferences and must declare that he/she complies with the definition of Accredited Investor.
    • The registered investor must provide, upon registration or before the investors in the venture's capital raising are determined, to ISOB and the venture raising capital verification and validation, as required by the venture and/ or ISOB: That he complies with one or more of the definitions of the first schedule of the Israeli Securities Law 5728 (1968).Without such verification the registered investor will not be able to participate in the capital raising and he will be evoked from the ISOB site registered investors data base.
       
     
     


     Step 2  Access and browsing investments opportunities' general information 
     
     
    • After registration on the ISOB Site and providing a self declaration of being an Accredited Investor, the potential investor can log in as a user and search the ISOB database for unique investment opportunities in Israeli startups and high growth companies, All company have been prescreened and vetted by the ISOB Investment Committee as meeting the preconditions of the ISOB Investment Committee and comply with ISOB’s Terms of Use.
    • For each venture, the potential investors will be able to view the "Enterprise Business Profile Documents", which are available for all ISOB registered investors. This, however, does not constitute an offer to purchase securities pursuant to the Securities Law.
    • ISOB will send the potential investors, on an ongoing basis and in accordance with their investment preferences, new "Enterprise Business Profile Documents" approved for inclusion on the site.
    • Investing in companies and opportunities is limited to Accredited Investors and possible only after receiving full details of the investment opportunity, which are provided and included in the "Enterprise Capital Raising Documents", and in accordance with a predetermined process.
    • Determination of the investors who will participate in the capital raising will be in accordance with a predetermined process for potential investors and in accordance with the requirements of the Securities Law and other legal provisions as well as ISOB internal procedures.
     



     Step 3  Examining a particular investment opportunity by registered investors 
     
     
    • Registered investors interested in a particular investment opportunity must submit an application via ISOB to the startup, and request the "Enterprise Capital Raising Documents".
    • The application will be reviewed abased on criteria set forth in ISOB's Terms of Use and / or the "Enterprise Business Profile documents" – all within the limits of the law. Upon approval of the application, the "Enterprise Capital Raising Documents" will be sent to the applicant. Registered investors whose applications are approved will be considered offerees in the current capital raising.
    • The number of offerees and participants, the terms of the offer, its execution and the frequency of capital raising without the need for a prospectus are subject to the provisions of the Securities Law. Investors should examine the provisions of the law including the sections relating to an "offer or sale to the public" and should obtain professional and independent advice on the law, their status as provided in the law, the meaning and its implications for them as an investor.
     


     Step 4  Examining an investment opportunity by the offeree and investment decision-making 
     
    • Offerees are allowed and encouraged to conduct their own independent due diligence of the investment opportunity in order to make their decision regarding the investment and modify the terms and conditions in the investment agreement drafts.
    • Once the offerees have made their decision, the participating investors will be determined; all in accordance with a predetermined process for the potential investors and in accordance with the requirements of the Securities Law and other legal provisions as well as ISOB procedures.
    • The structure of the legal entity of the investors will be determined and the "investor's representative" will be appointed.
    • Each investor participating in the capital raising undertakes to transfer the amounts he or she has committed to invest to a special escrow 
      account no later than 96 hours prior to the closing date. The minimum investment amount of each investor in the private placement is USD 30,000 and/or as determined in the specific "Enterprise Business Profile Documents"
     



     Step 5  Completion of the capital raising and transfer of funds ( the Closing) 
     
    • A company wishing to raise capital must state the predetermined minimum amount it intends to raise (the "Fundraising Target") and the minimum amount to be raised from the investors (lower than the Fundraising Target) which, when reached will activate the ISOB underwriting commitment  (the "ISOB underwriting  threshold").
    • If the total capital raising commitments are lower than the Fundraising Target, then the startup’s capital raising will be canceled and any amount already paid will be returned to the investors.
    • If the total capital raising commitments from investors are higher than the "underwriting threshold",then the ISOB underwriting commitment will be activated and ISOB will invest the difference (as agreed) between the Fundraising Target and the total capital raising commitments from the investors and the startup’s capital raising will be declared completed.
    • Investors' funds are deposited in a special escrow account until the closing. Upon announcement of the closing, the startup will be entitled to the amount of the funds raised less costs and professional advisers' fees in exchange for the transfer of the rights / shares issued to the investors. If the capital raising was not completed, closing will not occur and the amounts deposited by each investor in the escrow account will be returned to the bank account provided by the offerees upon registering  as an investor on ISOB's site. Amounts deposited in the escrow account do not bear interest.
     



     Step 6  Management and supervising the investment after the closing of the capital raising 
     
    • Upon closing of the capital raising, the mentor will support and guide the startup and its management in order to achieve the milestones presented in the business plan.
    • The investors' representative will oversee the corporate governance of the enterprise and the internal control issues regarding related parties transactions; all in accordance with the Investors' Rights Agreement.
    • Subject to the Investor's Rights Agreement, investors may have the right to appoint a representative as an observer or a member of the board of directors of the startup, and will have the right to receive the agreed-upon periodic reports.