The equity model usually works for companies that will have the opportunity to enter the stock market or be acquired by a larger company. This is the classic “exit” model of investment funds.
In the royalty model, investors make money on the sale of a product or a service, so there is no need for an “exit”. Investors will reap benefits even if the company is never acquired or never become public.
The benefits of the royalty model are different for entrepreneurs and investors.
- For entrepreneurs :
o No dilution because no sharing of capital
o Royalty rates are low and affordable
o The royalty contract can be bought or transferred to an acquirer
- For investors :
o Avoid lengthy discussion on the valuation
o Return not tied to an exit
o Long-term return potentially much higher
o Return begins as soon as sales begin
o Even a small amount invested can generate a good return
Source: The Royalty Way To Crowdfunding by Barry Rickert and William Haseltine
"R&D Points™" are virtual monetary units that, in total, correspond to the percentage of royalty that will be returned to investors.
Each R&D point is worth 50€ so the total of R&D points for each project depends on the actual amount raised for the project. For example, a project that needs to raise 400,000€ would allocate 8,000 R&D points to subscribers and the annual royalty would be returned to each investor according to the number of R&D points he/she holds.
The R&D Points are transferable.
My Pharma Company is open to projects and subscribers worldwide. For example, a Brazilian project can be financed by European, American and Japanese subscribers.
For France, the basic rule is that intangible assets which are expected from the outset, that the beneficial effects on the exploitation necessarily expire on a specific date is depreciable (see BOI-BIC -AMT-10-20-20140312). Several examples are shown in BOFIP, which leaves us thinking that the acquisition of R&D Points™ on the My Pharma Company platform are amortized over the expected period of redistribution of charges which is itself based on the due date or patents owned by the project developer and previously defined in the financial operation.
No, there is no VAT
The agreement you sign when you invest is a contract between you and the project/company you finance. Each subscriber remains the sole owner of the financial rights that are due for the entire duration of the contract.
My Pharma Company is the agent that selects and follows-up the various projects, manages the platform, as well as the distribution of royalties to investors.
Should My Pharma Company disappear for any unforeseen reason, the French Ministry of the Economy and Finance has granted the ability to transfer the rights of all subscribers to a trust managed by an independently approved trustee.
Yes. You can ask us to return your money within 14 days of investing in any project.
Until the end of funding period, your money is placed in an escrow account dedicated to the specific project you are financing.
Once the funding goal is achieved, all the money (including your contribution) is forwarded to the company that is developing the project.
If the funding goal is not achieved, we will immediately return 95% of your money, the remaining 5% having been used for communication purposes and bank fees.
My Pharma Company will never use your personal information under any circumstances.
You must provide some personal data and your mobile phone number in order to validate the contracts you sign and to comply with the legal requirements of TRACFIN, the European Organization that tracks money laundering.
Your bank account information is managed by Credit Mutuel Arkea and is not accessible by anyone at My Pharma Company.
Your password is encrypted, thus neither visible nor accessible to anyone at My Pharma Company.
At any time, you can transfer the cash (or part of it) from your My Pharma Company e-wallet account to your personal bank account.
Transfers are typically completed within 3-5 days.
Connectez-vous sur My Pharma Company avec votre mot de passe et allez dans "Profil " puis "tableau de bord" (à droite dans la barre de menu).
Indiquer votre identité dans votre profil avant de procéder à votre virement supérieur à 1 000 € :
=> Aller dans l’onglet suivant « Mes informations »
=> Renseignez la partie « Informations pour investissement supérieur à 2 500 € » :
-télécharger votre pièce d’identité (carte d’identité ou passeport) (scan ou photo lisible),
-télécharger votre justificatif de domicile (scan ou photo lisible),
-valider avec le bouton « Enregistrer ».
Il vous faudra attendre quelques jours de traitement avant de pouvoir faire le virement supérieur à 1 000 € sur votre compte bancaire personnel.
Les transferts d’argent entre votre portefeuille électronique et votre compte personnel (et inversement) sont gérés par la société Mangopay, dépositaire des règles anti-fraudes et anti-blanchiment d’argent. Ces règles imposent des justificatifs d’identité pour un virement :
- de votre RIB vers votre portefeuille électronique, pour des sommes supérieures à 2 500 € par an,
- de votre portefeuille électronique vers votre RIB, pour des sommes supérieures à 1 000 € par an.