Do Well and Do Good

Investors can accelerate the positive impact Alkemio has on society.

With attractive returns for early investors. Timing is right for Alkemio, with lower risk as aligned with powerful trends in society.

The ambitious vision needs resources to make it happen. To be the successful and game-changing platform for solving challenges in society. Join us on the exciting journey!

Multiple Returns

Investment in Alkemio offers three types of returns:

• Economic returns: Up to a specified multiple of the invested amount. For early investors that multiple is 3.5x or 3x.
• Social returns: Alkemio has the potential to really impact our society on a massive scale. It is hard to overstate the potential: much more effective progress on key challenges, collaboration on digital platforms that put societal values first, avoiding duplication of efforts, more inclusivity and engagement across society.
• Inspiration returns: Our society is increasingly digital, and the digital platforms are dominated by parties whose interests do not align with society’s interests. This status quo is not a given, and Alkemio is aiming to inspire many more people and organizations to move towards a future where digitalization works for society!

This is the first external funding round of Alkemio, with attractive returns for the early investors who help Alkemio to scale and accelerate the impact

Understanding the Economic Returns

The economic returns to investors and staff are capped. This is a core feature of Steward Ownership, to ensure all parties are aligned with the purpose of benefitting society. Excess profits will be used/donated in line with the purpose.

The cap level for early investors is 3x-3.5x, depending on timing of investment. The full mechanism is described in schedule C of the Alkemio Holding Shareholders Agreement - with a worked example provided here.

Example:

• A cap of 3x means an investment of E100 will entitle that investor to dividends of up to E300
• From 4 years after the investment date, if the investor has not yet received the full E300, the balance (E300 minus cumulative dividends received) will start to accrue at a certain annual rate to be determined. If the balance is E200 after 4 years and the annual rate is 5% the amount of future dividends the investor is entitled to will increase to E210 after 5 years. So the effective cap on total cumulative dividends would have increased to E310, or 3.1x.

It is important to note that the potential return level is capped at the time of the investment. This is different for example than when buying shares in a startup - there the maximum potential return is unknown: it depends on how the startup does.

Each CC certificate has a fixed entitlement to dividends. The capped return is determined by the number of certificates received. So if an investor puts in EUR100,000 at a multiple of 3x, and each certificate has a dividend entitlement of EUR1,000 then the investor receives in total 300 certificates (100,000*3 / 1000).

This gives investors the potential to do very well economically while they are also enjoying huge social and inspiration returns.

Aligned with Powerful Trends

The time is right for Alkemio, with lower risk as aligned with major trends in society:

1. Concern about big tech, with a desire/need for platforms with public values first
2. Greater social conscience, with more focus on inclusivity, sustainability, and a better society for all
3. The need for progress on hard issues, including climate change, AI, food and energy security

Alkemio is a solution to the concerns about big tech. And it provides the platform for making impact by those concerned with improving society and achieving progress on hard issues.

New Style of Investing Opportunity

In line with Alkemio’s choice of Steward Ownership, there are features of this investment opportunity that differ from those of a typical venture capital backed startup. The capped economic returns, strong social returns and purpose to benefit society have already been mentioned above.

Some other notable points include:

• Voting control is held by stewards of the company, not by investors, to ensure decisions are made in line with achieving the long-term purpose
• A special share is held by an independent 3rd party, whose consent is needed for certain key matters related to achieving the purpose. These include a change of the purpose, a sale of the company, etc.
• Investors should look to expected returns from dividends over the medium-long term, instead of from a company sale. The company is set up to remain independent, to build a very successful long-term business focused on the purpose.
• Simple setup, with no special shares / setup for founders.
• The timing and process of raising new funds can be easier and quicker than for typical VC funded startups. The capped returns and control by stewards mean there is no cap table or voting rights to protect, or valuation to spend lengthy discussions on.

Further details of steward ownership and how Alkemio is set up can be found on the group structure overview

The more capital Alkemio can raise the faster we can scale and make impact.

Alkemio is doing the first external fundraising, and we are looking to build a wider community of backers (people and organizations) who share the vision.

It is an ambitious vision, and one we believe is very achievable and worthwhile. Join us on this exciting journey to make a real difference in society! Do well and do good.

Join us!

Disclaimer

The information provided here is for general informational purposes only and should not be considered as investment or business advice.

Any investment or business decisions made based on this information are at your own risk.