Unlisted investments: benefits and risks

Investing in unlisted companies offers unique opportunities to support innovative projects and achieve attractive returns. However, like any investment, it carries risks. The revenue-sharing model offered on WE DO GOOD is an attractive solution for managing the risk/return ratio. This model, which is aligned with company revenue, allows you to contribute to projects while directly linking returns to the company’s actual performance.

What is investing in unlisted companies?

Investing in unlisted companies involves financing companies through financial products that are not listed on public stock markets (where buying and selling are possible at any time).

Unlike listed financial products, the companies represented are often still young, and the associated products carry a risk of illiquidity.  That is why these products offer compensation in return. significantly higher long-term return potential.

Advantages of investing in unlisted companies

High yield potential

Unlisted companies, particularly those in the seed or growth phase, can offer above-average returns. By participating in the development of these companies, you can benefit from their success and receive a return on investment proportional to their results.

Portfolio diversification

Investing in unlisted companies allows you to diversify your investments by gaining access to companies in a variety of sectors with high potential. This offers you a new asset class that complements more traditional investments.

Positive impact

At WE DO GOOD, the companies we select meet social, environmental, or economic impact criteria. Your investments therefore support initiatives that contribute to a sustainable future.

The risks associated with investing in unlisted companies

Less liquidity

Investments in unlisted companies are not easy to resell: your capital may remain tied up for several years. With RBF, however, you generally receive quarterly repayments, allowing you to gradually recover part of your investment.

Yield not guaranteed

Developing or growing companies may not generate revenue immediately. Returns are therefore directly linked to the future performance of the companies. It is important to understand that success is not always guaranteed.

Volatility and sector risk

Unlisted companies are often sensitive to fluctuations in their sector of activity, and the risk of loss may be higher than for more established companies.

Examples of unlisted assets

Unlisted shares

A share represents a fraction of a company’s capital. If you own shares, you own part of the company.

Revenue sharing agreements

A revenue-sharing agreement commits a company to pay the agreement holder a fixed percentage of its revenue.

Unlisted bonds

A bond is a debt security issued by a company. If you hold a bond, you will be repaid with interest according to the terms of the bond.

Real Estate and Infrastructure

Real estate or infrastructure investment involves purchasing a tangible asset (or a share). The return comes from the rent received and/or capital appreciation.

Stocks and bonds, in particular, may also be listed one day—i.e., available for purchase and sale at any time on a marketplace—provided that trading flows and volumes allow for a certain degree of liquidity.

Please note that the funds are invested entirely in the financed company. An investment exposes you to a partial or total loss of the amounts invested. Their repayment will be spread out non-linearly over a defined period, generally between 3 and 5 years, depending on the terms of your contract.

How does WE DO GOOD mitigate risk?

The revenue-sharing model offered on WE DO GOOD is an attractive solution for managing the risk/return ratio. This model, which is aligned with company revenue, allows you to contribute to projects while directly linking returns to the company’s actual performance.

Rigorous selection of projects

We apply rigorous selection criteria in order to retain only viable companies with solid business models, thereby limiting the risk of underperformance. Nevertheless, you are responsible for your investments, and we enable you to conduct your own in-depth analysis thanks to our comprehensive project pages.

Transparency and continuous monitoring

You have access to regular information on the performance of the companies in which you invest. We provide you with tools to closely monitor your investments and understand how they are performing.

Ongoing royalties based on revenue

Unlike a model based on the valuation of the company or the resale of shares, you receive royalties over time, proportional to the revenue generated by the company. This allows you to start receiving payments even if the company has not yet reached full maturity.

Gérer le risque dans ses investissements WE DO GOOD

Tout investissement comporte des risques

– Risque lié à la performance

Les redevances dépendent du succès de l’entreprise. L’investissement dans une société privée implique une exposition aux risques propres à son secteur d’activité. Une performance inférieure aux prévisions peut affecter vos revenus.

– Durée d’investissement et montants investis

Les fonds sont investis en totalité dans l’entreprise financée. Un investissement vous expose à une perte partielle ou totale des montants investis. Leur remboursement s’étalera de manière non-linéaire sur une période définie, en général entre 3 et 5 ans selon les termes de votre contrat.

Pour minimiser votre exposition aux risques

– Diversifiez vos placements

Investissez dans différents projets et secteurs pour réduire votre dépendance à la réussite d’une unique entité (société, secteur, …). Multipliez également vos supports et produits d’investissement qui ont chacun leurs risques propres.

– Réalisez votre propre analyse au préalable

Étudiez les documents fournis, renseignez vous sur la mission et la vision de la société financée mais aussi sur son historique, son ancienneté ainsi que sur le ratio risque/rendement qui vous est proposé. N’hésitez pas à poser également des questions si besoin. Vous êtes responsable de vos investissements.

Managing risk in your investments WE DO GOOD

All investments involve risk.

Performance risk

Royalties depend on the success of the company . Investing in a private company involves exposure to risks specific to its industry. d’activité.

Investment period and amounts invested

The funds are invested entirely in the financed company. An investment exposes you to a partial or total loss of the amounts invested . Their repayment will be spread out in a non-linear manner over a defined period, generally between 3 to 5 years according to the terms of your contract.

To minimize your exposure to risks

Diversify your investments

Invest in various projects and sectors to reduce your dependence on the success of a single entity (company, sector, etc.). Also diversify your investment vehicles and products, each of which has its own risks.

Conduct your own analysis beforehand

Study the documents provided, find out about the mission and vision of the company being financed, as well as its history, how long it has been in business, and the risk/return ratio being offered to you. Don’t hesitate to ask questions if necessary. You are responsible for your investments.

Start investing with WE DO GOOD

Simple registration

Create your account in just a few minutes to access all the features of our platform.

Dedicated support

Our team of experts is available to answer your questions and guide you throughout your journey.

Custom selection

Use our filtering tools to find projects that align with your interests and investment goals.

Our guarantees and regulatory framework

Supervised Investment

The contract binding investors to companies was drafted by our law firm, Pledge Law, which specializes in financial regulation.

Secure Transactions

During fundraising campaigns, investments and fund allocation are managed and secured by Lemonway, a Payment Service Provider (PSP) approved by the ACPR, for which we are an agent.

Minimum Target

Each fundraising campaign is validated based on a minimum target, defined as the amount required for the project to be implemented effectively, with the aim of enabling rapid payment of royalties.

Committed Company

WE DO GOOD is a mission-driven company certified as a B Corp, labeled by Finance Innovation, a member of the France Fintech professional association, and approved as an IFP.