The club has four membership levels: Starter, Explorer, Pioneer and Business Angel. Depending on the level, the allocation amount and the total amount you can invest over a year differ.
Each membership level includes two parameters:
For two weeks, all the information relating to the funding operation is available on Akka's website. During this period, each member indicates the amount they wish to invest: the intention.
The Starter membership works with a fixed amount: the intention is €300 per funding round, with no adjustment possible. For the Explorer, Pioneer and Business Angel levels:
Example: An Explorer member can subscribe up to €2,000 per project. They can therefore state an intention of €1,000 or €2,000. They can also indicate an additional option of up to €2,000, which will only be taken into account in the event of undersubscription.
At the end of the intention registration period, we calculate the sum of the amounts that all members wish to invest and determine whether the round is oversubscribed or undersubscribed.
A fundraising round is undersubscribed if the sum of the intentions is less than the total amount to be raised. In this case, all investors who have indicated their intention can participate in the fundraising, up to the amount of their intention or the additional option, if applicable.
A fundraising round is oversubscribed if the sum of the intentions is greater than the total amount to be raised. In this case, not all investors will be able to obtain an allocation equivalent to their intention. This is where the algorithm comes into play.
Akka's selection algorithm only comes into play if the sum of the intentions exceeds the amount to be raised. Its purpose is to allow as many members as possible to obtain an allocation, without exceeding the total amount.
The amount to be raised is distributed by applying the same divisor to each intention, regardless of the membership level.
Example: Funding round X has a maximum target of €1,000,000.
The sum of the intentions comes to €2,000,000.
€2,000,000 / €1,000,000 = 2 is the divisor.
If you stated an intention of €1,000, you will obtain an allocation of €500 on this operation, i.e. 50% of your intention. A Starter intention of €300 would give an allocation of €150.
Members who have indicated their subscription intention will receive an email to finalize their participation in the fundraising round. The amount they will have to invest cannot be different from the one indicated during the intention phase, except in case of oversubscription, where the amount will have been reduced.
Once all subscriptions have been received and the information collected, Akka's legal teams will proceed with the capital increase and subscription to the startup's fundraising.
Once the fundraising is completed, you will have access to your investment commitment directly in your Investor Space.