What is priority right?

When you are an investor in a syndicate, you have a special right to purchase investments before everyone else outside the syndicate

In legal terms, this is called a “priority right”. What this means, is that certain people have a priority right to buy something before anyone else, at a given price.

If no one uses their priority right, anyone else can match the offer to buy the investment.

The underlying reasons of priority rights are:

  • To allow existing investors to keep their investment in the start-up company closed and thus limit the number of investors within the syndicate, and/or
  • To allow existing investors the possibility to increase their share in the syndicate

For instance, if an existing investor decides to sell their investment, the other investors in the syndicate have the right to step in and buy the investment at the agreed price.

️️Warning: Investing in early-stage and growth companies puts your capital at risk. Please read our Risk Disclosure Statement

The information about the investment opportunities profiled on this website is provided for general information and marketing purposes only and should not be considered an invitation or inducement to engage in any investment activity. Complete and comprehensive information about an investment opportunity is only available to the investors who have been approved by a Funderbeam group entity.

You should ensure you carefully read the Risk Disclosure Statement before deciding to proceed with any investment. Funderbeam has taken steps to ensure that the campaign information is clear, fair and not misleading in accordance with its internal verification procedures. Funderbeam does not provide investment advice or any recommendation to invest. The investment opportunity should not be considered as an offer to the public and is not directed at or offered to anyone located in a jurisdiction where it is unlawful to do so.

This page provides you with an overview of the services provided by different entities belonging to Funderbeam Group. In this page, we generally refer to the group as “Funderbeam”, “we”, “us” or “our”. It is important to note that funds can be raised, investments made and trade orders placed through Funderbeam Markets Limited (authorised and regulated by the UK Financial Conduct Authority under FRN 794918) or Funderbeam Markets Pte Ltd (licensed and regulated by the Monetary Authority of Singapore under Capital Markets Services (CMS) license CMS100863). In parallel, the Marketplace is operated by Funderbeam Markets OÜ, a company registered in Estonia, operating in reliance on certain regulatory exemptions in Estonia.