Mawzi 1A
Supercharging your dentist's clinic
€74,000
total amount raised in round
- Eligible for a tax reduction
This campaign has been closed
Type 1 – Project risk
1. Risk associated with the team's knowledge of the market and correctness of forecasts
Risk: The MAWZI team might not have (proper) knowledge of the market and/or make incorrect forecasts.
Consequence: If the team does not have sufficient knowledge of the market, it could set incorrect targets. This could lead to a slower growth or a lower valuation in the event of a possible exit because the business plan could not be executed as planned. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and bankruptcy of the company, with partial or complete loss of the invested capital.
Note: For the past 5 years, MAWZI's CEO has managed a company in the healthcare sector whose sales have risen from 7 to 8 figures. It's also this position that gives him all the industry knowledge he needs - a key part of MAWZI's strategy, as he is in touch with factories, distributors and dentists.
Consequence: If the team does not have sufficient knowledge of the market, it could set incorrect targets. This could lead to a slower growth or a lower valuation in the event of a possible exit because the business plan could not be executed as planned. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and bankruptcy of the company, with partial or complete loss of the invested capital.
Note: For the past 5 years, MAWZI's CEO has managed a company in the healthcare sector whose sales have risen from 7 to 8 figures. It's also this position that gives him all the industry knowledge he needs - a key part of MAWZI's strategy, as he is in touch with factories, distributors and dentists.
2. Risk associated with the time the CEO devotes to MAWZI
Risk: As mentioned above, MAWZI's CEO is also CEO of another company. He therefore does not devote 100% of his professional time to MAWZI.
Consequence: If the entrepreneur does not devote 100% of his professional time to the project, he may be less able to respond to certain opportunities and/or take certain measures to avoid potential setbacks, either because he did not have time to make the necessary analyses in time and therefore did not see them coming, or because he cannot react in time. This could lead to a slower growth or a lower valuation in the event of a possible exit because the business plan could not be executed as planned. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and bankruptcy of the company, with partial or complete loss of the invested capital.
Note: The CEO works for a company in the dental sector. He therefore has the advantage of knowing more about the sector and being in contact with the same key players. The likelihood of him missing out on certain opportunities or setbacks is therefore much lower than for a CEO who devotes 100% of his professional time to MAWZI. In the short term, he will devote 70% of his time to MAWZI and 30% to the other company. Once MAWZI is in a position to pay salaries, this can be re-examined.
Consequence: If the entrepreneur does not devote 100% of his professional time to the project, he may be less able to respond to certain opportunities and/or take certain measures to avoid potential setbacks, either because he did not have time to make the necessary analyses in time and therefore did not see them coming, or because he cannot react in time. This could lead to a slower growth or a lower valuation in the event of a possible exit because the business plan could not be executed as planned. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and bankruptcy of the company, with partial or complete loss of the invested capital.
Note: The CEO works for a company in the dental sector. He therefore has the advantage of knowing more about the sector and being in contact with the same key players. The likelihood of him missing out on certain opportunities or setbacks is therefore much lower than for a CEO who devotes 100% of his professional time to MAWZI. In the short term, he will devote 70% of his time to MAWZI and 30% to the other company. Once MAWZI is in a position to pay salaries, this can be re-examined.
3. Risk associated with insufficient funding to complete the minimum viable product (MVP)
Risk: Given the company's stage of development, it will need at least €45,000 to complete its MVP.
Consequence: There is a risk that the MVP cannot be fully developed or launched, leading to delays or a drop in quality. This could lead to a slower growth or a lower valuation in the event of a possible exit because the business plan could not be executed as planned. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and bankruptcy of the company, with partial or complete loss of the invested capital.
Note: MAWZI will make every effort to secure initial funding of €45,000 to ensure that MVP development is on track without compromising on quality.
Consequence: There is a risk that the MVP cannot be fully developed or launched, leading to delays or a drop in quality. This could lead to a slower growth or a lower valuation in the event of a possible exit because the business plan could not be executed as planned. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and bankruptcy of the company, with partial or complete loss of the invested capital.
Note: MAWZI will make every effort to secure initial funding of €45,000 to ensure that MVP development is on track without compromising on quality.
4. Risk associated with the need for new long-term financing
Risk: Given the project owner's strong growth, it is likely that new financing will be required.
Consequence: On the one hand, there is a risk that the company will not find investors, leading to dissolution or bankruptcy, with the investor losing part or all of his investment. On the other hand, it is possible that the company will find new investors, leading to dilution, which will be even greater if a valuation lower than today's is used.
Note: Investors will have the option of reinvesting in new rounds of financing, at the investment conditions in force at the time.
Consequence: On the one hand, there is a risk that the company will not find investors, leading to dissolution or bankruptcy, with the investor losing part or all of his investment. On the other hand, it is possible that the company will find new investors, leading to dilution, which will be even greater if a valuation lower than today's is used.
Note: Investors will have the option of reinvesting in new rounds of financing, at the investment conditions in force at the time.
Type 2 – Sector risk
1. Risk associated with of delay in adapting the market product
Risk: There is a risk of delay in adapting the market product.
Consequence: If this risk occurs, there will be an increase in time-to-market, leading to higher costs and a potential loss of market opportunities. This could lead to a lower valuation in the event of a possible exit because the business plan could not be executed as planned.
Note: MAWZI plans to streamline development processes and engage in continuous feedback from users in order to accelerate the product's adaptation to the market within the set budget.
Consequence: If this risk occurs, there will be an increase in time-to-market, leading to higher costs and a potential loss of market opportunities. This could lead to a lower valuation in the event of a possible exit because the business plan could not be executed as planned.
Note: MAWZI plans to streamline development processes and engage in continuous feedback from users in order to accelerate the product's adaptation to the market within the set budget.
2. Risk associated with decision-maker resistance to new tools
Risk: There is a risk that decision-makers will resist the new tools.
Consequence: If this risk occurs, there will be slower adoption and reduced market penetration. This could lead to a lower valuation in the event of a possible exit because the business plan could not be executed as planned.
Note: MAWZI plans to implement education campaigns and offer free trials.
Consequence: If this risk occurs, there will be slower adoption and reduced market penetration. This could lead to a lower valuation in the event of a possible exit because the business plan could not be executed as planned.
Note: MAWZI plans to implement education campaigns and offer free trials.
3. Risk associated with integration difficulties with existing systems
Risk: There is a risk of integration difficulties with existing systems.
Consequence: If this risk occurs, there will be operational disruption and resistance to use. This could lead to a lower valuation in the event of a possible exit because the business plan could not be executed as planned.
Note: MAWZI plans to provide dedicated integration support and develop compatibility functions.
Consequence: If this risk occurs, there will be operational disruption and resistance to use. This could lead to a lower valuation in the event of a possible exit because the business plan could not be executed as planned.
Note: MAWZI plans to provide dedicated integration support and develop compatibility functions.
Type 3 - Risk of insolvency and bankruptcy of the project owner
Risk: The risk of insolvency means that the company does not have sufficient funds to meet its payment deadlines (cessation of payments). Consequence: If the company does not find alternative financing (shocked credit), it may go bankrupt. The insolvency or bankruptcy of MAWZI may lead to lower or non-existent returns and in the worst case to a partial or total loss of the invested capital.
Type 4 - Risk of lower, delayed or no returns.
1. Risk associated with the lack of guarantees.
Risk: Neither the shares of MAWZI nor the Participatory Notes of the MAWZI 1A compartment of Spreds Finance provide guarantees of a return or repayment of the invested capital.
2. Risk associated with the lack of a fixed return.
Risk: Participatory Notes do not offer a fixed return. The return of the Participatory Notes depends solely on the performance of the Underlying Asset, namely the shares of MAWZI.
Consequence for both risks: If the project owner's predictions do not come true (within the predetermined timing), there is a risk of lower or non- existent returns and, in the worst case, partial or complete loss of the invested capital.
Note for both risks: Investors who subscribe to Participatory Notes bear the same economic risk as if they were investing directly as MAWZI shareholders.
Consequence for both risks: If the project owner's predictions do not come true (within the predetermined timing), there is a risk of lower or non- existent returns and, in the worst case, partial or complete loss of the invested capital.
Note for both risks: Investors who subscribe to Participatory Notes bear the same economic risk as if they were investing directly as MAWZI shareholders.
Type 5 - Risk of failure of the financing vehicle
Risk: Although each Spreds Finance compartment is ‘bankruptcy remote’ (meaning that no other creditor can claim a right on or against this compartment) in relation to the others and in relation to the ‘general’ liabilities of Spreds Finance itself, as a result of (i) the terms and conditions of the Notes, (ii) the articles of association of Spreds Finance and (iii) Article 4 of the Law of 18 December 2016 on crowdfunding; there is a subsidiary risk of insolvency of Spreds Finance.
Consequence: Should such insolvency occur, Noteholders may be exposed to the risk of a significant delay in the recovery of their investment. Note: The probability of this risk occurring is extremely low given the structure and organization of Spreds Finance, in particular the compartmentalization mechanism and the "bankruptcy-remoteness" described above. Each participation taken or loan granted to a project owner is recorded in a separate compartment and is appropriately accounted for in the accounts, taking into account the fact that the accounts are kept by compartment. As a result of (i) the conditions attached to the issue of Participatory Notes, (ii) the articles of association of Spreds Finance and (iii) article 10 of the law regulating the recognition and delimitation of crowdfunding and containing various provisions relating to finance and notwithstanding articles 7 and 8 of the Mortgage Law of 16 December 1851, the assets of a particular compartment serve exclusively to guarantee the rights of investors with respect to this compartment.
Risk: Although each Spreds Finance compartment is ‘bankruptcy remote’ (meaning that no other creditor can claim a right on or against this compartment) in relation to the others and in relation to the ‘general’ liabilities of Spreds Finance itself, as a result of (i) the terms and conditions of the Notes, (ii) the articles of association of Spreds Finance and (iii) Article 4 of the Law of 18 December 2016 on crowdfunding; there is a subsidiary risk of insolvency of Spreds Finance.
Consequence: Should such insolvency occur, Noteholders may be exposed to the risk of a significant delay in the recovery of their investment. Note: The probability of this risk occurring is extremely low given the structure and organization of Spreds Finance, in particular the compartmentalization mechanism and the "bankruptcy-remoteness" described above. Each participation taken or loan granted to a project owner is recorded in a separate compartment and is appropriately accounted for in the accounts, taking into account the fact that the accounts are kept by compartment. As a result of (i) the conditions attached to the issue of Participatory Notes, (ii) the articles of association of Spreds Finance and (iii) article 10 of the law regulating the recognition and delimitation of crowdfunding and containing various provisions relating to finance and notwithstanding articles 7 and 8 of the Mortgage Law of 16 December 1851, the assets of a particular compartment serve exclusively to guarantee the rights of investors with respect to this compartment.
Type 6 - Risk of illiquidity of the investment
1. Risk associated with the absence of an organized exchange market for Participatory Notes
Risk: Neither the project owner nor Spreds Finance organizes an exchange market for Participatory Notes. It is thus up to the investor himself to find a buyer for his Participating Notes. Given the absence of an exchange market for Participatory Notes, there is no way to adequately establish a comparative pricing methodology for Participatory Notes.
Consequence: A holder of Participatory Notes may not be able to find a buyer for the Participatory Notes it wishes to sell (at the price at which it wishes to sell).
Note: The intention is not to sell the Participatory Notes but to sell the Underlying Asset, often on the occasion of the sale of the Underlying Company itself (see Appendix B, (d)).
Consequence: A holder of Participatory Notes may not be able to find a buyer for the Participatory Notes it wishes to sell (at the price at which it wishes to sell).
Note: The intention is not to sell the Participatory Notes but to sell the Underlying Asset, often on the occasion of the sale of the Underlying Company itself (see Appendix B, (d)).
2. Risk associated with the vote by the general meeting of holders of Participatory Notes to sell
Risk: Any decision by Spreds Finance to sell shares of MAWZI is subject to the approval of the holders of Participatory Notes representing at least 75% of the outstanding Participatory Notes, unless Spreds Finance is required to sell them under a contractual or statutory provision. Consequence: Investors thus bear the risk that the general meeting of the holders of Participatory Notes may refuse to approve the sale of the participation, in which case all investors are bound by this decision and thus must wait to obtain redemption of the Participatory Notes.
3. Risk associated with an investment in a young company
Risk: Investing in shares of young companies entails the risk that a buyer for the shares will not be found, or not at a fair price yielding a market return, or that a buyer will not be found within a reasonable period of time.
Consequence: If no buyer is found for the holding, redemption of the Participatory Notes is not possible.
Note: Spreds Finance will make every effort within its powers to obtain the best possible price.
Consequence: If no buyer is found for the holding, redemption of the Participatory Notes is not possible.
Note: Spreds Finance will make every effort within its powers to obtain the best possible price.
Type 7 – Other risks
Risk: Spreds Finance has not conducted an analysis of the proposed project or of the financial situation of the Underlying Company. Consequence: Any investor considering subscribing to Participatory Notes should make its own analysis of MAWZI's solvency, activity, financial situation and prospects.
Note: Any decision to invest in Participatory Notes should be based on a comprehensive analysis of the project and of this sheet of essential investment information. Spreds Finance's model does not provide for the presentation of analyzed projects to investors but allows investors to invest based on the information made available to them, after making their own analyses.
To the best of the project owner's knowledge, there are no other material risks associated with its activities.
Note: Any decision to invest in Participatory Notes should be based on a comprehensive analysis of the project and of this sheet of essential investment information. Spreds Finance's model does not provide for the presentation of analyzed projects to investors but allows investors to invest based on the information made available to them, after making their own analyses.
To the best of the project owner's knowledge, there are no other material risks associated with its activities.