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Invest in companies and
directly participate in their success

Benefit from the potential growth & value increases of attractive companies with virtual shares.

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Investing in companies with participation rights

The principle of participation rights

The aim of participation rights is to put you on an equal economic footing with the shareholders (equity investors).

This means that you stand side by side with the real shareholders and participate in profit distributions and in the event of a possible sale of the company.

Also known as virtual shares

Participation rights are securities. They give you a share in any profit distributions - and a share in the proceeds in the event of a company sale or IPO.

Unlike real shareholders, however, you do not receive voting rights and do not participate directly in the share capital. That is why we speak of virtual shares.

Mit Partizipationsrechten stehen Sie gleichauf mit echten Gesellschaftern bei der Investition in Unternehmen

3-fold participation opportunities

Participate in the proceeds of the sale of the company with the exit participation

1. Exit-participation

  • In the event of company sale:
    You and the shareholders receive a proportionate share in the proceeds.
  • In case of an IPO:
    You receive a proportionate share depending on the average share price over a defined period.

Participate with profit sharing

2. Profit participation

  • In case of profit distribution you participate proportionally together with the shareholders.
  • The payment is made annually.

Profit with the basic interest rate if it exceeds the participation in the sale / exit proceeds.

3. Basic interest rate

  • In addition to profit and exit participation, the virtual shares grant a basic interest rate.
  • In an exit scenario, you either receive the basic interest rates or the proceeds from your exit participation - depending on which of both has higher returns.

Successfully implemented participation right at Invesdor

Beets & Roots is based in Berlin and was founded in 2016. The company offers balanced meals such as bowls, salads and wraps in eight restaurants so far. The company focuses on a contemporary dining experience that emphasizes customisability and speed, and is thus aimed primarily at health-conscious city dwellers.

In 2021, the company is focusing on financing via participation rights to further drive its Germany-wide growth.

With the participation right, Beets & Roots gives its customers and fans a direct share in the company's success. With the exit and profit sharing, the company rewards its most loyal existing customers and investors. The virtual shares offer a fair and positive direct participation opportunity for the investors.

Beets & Roots , which so far operates eight restaurants in four major German cities, is using the capital raised to open up to eight more locations, expand its own delivery business and build its own loyalty program.

Scenario Redemption amount (Investment + Proceeds) Redemption
Basic interest rate (No Exit,
no Profit Distribution)
€5,000.00 (€4,000.00 + €1,000.00) at the End of the term
Exit proceeds* of €10m

€5,012.21 (€4,000.00 + €1,012.21)

after Exit during term
Exit proceeds* of €20m €6,372.71 (€4,000.00 + €2,372.71) after Exit during term
Exit proceeds* of €50m €10,454.21 (€4,000.00 + €6,454.21) after Exit during term
Exit proceeds* of €100m €17,256.71 (€4,000.00 + €13,256.71) after Exit during term

Simplified, exemplary presentation. The regulations in the respective participation right conditions are decisive.

*Exit proceeds in the case of a share or asset deal. Calculation assumptions: exit proceeds after deduction of all costs and preferences. Complete sale of the company. No further changes to participating capital until exit. Full placement of the participation right.

Beets & Roots legt 2021 ein Partizipationsrecht auf

FAQ: Participation rights

No, with the participation right, investors do not have any loss participation or obligation to make additional contributions.

Participation rights have been designed with the aim of putting investors on an equal economic footing with real shareholders (equity investors). This means that investors stand side by side with the real shareholders and participate in profit distributions and in the event of a possible exit.

With a virtual share (participation right), investors benefit like a real shareholder from any profit distributions and in the event of an exit (e.g. company sale, IPO). Unlike real shareholders, however, investors do not receive voting rights and do not participate in the share capital. Therefore "virtual" shares.

In the event of an IPO, investors receive a pro rata exit participation based on the average share price in the first (usually) sixty trading days after the IPO. The details are governed by the participation right conditions.

In the event of a profit distribution, the investors participate proportionately together with the shareholders.

In addition to the profit and exit participation, investors receive a basic interest per year for the capital invested over the entire term. The basic interest is due insofar as the exit participation is lower than the basic interest itself.

Payment is made at the end of the term.

Yes. After a six-month minimum holding period, the participation rights can be sold. However, the participation rights are currently not tradable on an exchange, nor is there currently a liquid secondary market.

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