FAQ

Frequently Asked Questions

How does it work?
Every project presented to our members undergoes a meticulous selection process by Maxime Paradis, who also personally invests in each one. The Paradise Club team is dedicated to conducting thorough audits and due diligence, ensuring that the entire operation is both simplified and secure for our members.
Is it free to join the Club?
Yes it is.
However We are not just a platform. We are a community. We only accept members who are aligned with the club's values.
How do you become a member?
Apply by filling out this form.
How is the club different from a traditional fund?
The Paradise Club is the most efficient solution for investing in startups:
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πŸ‘‰ The entry ticket is affordable (starting €1k)
πŸ‘‰ Personalized choice of investments
πŸ‘‰ Access to exclusive startups
πŸ‘‰ Amateur investors accepted
πŸ‘‰ Accessible without an excellent network
πŸ‘‰ Improved liquidity
What will Maxime Paradis bring to the Club?
Maxime offers unparalleled access to the most promising startups in the market, specializing in Technology and Impact sectors. His extensive network ensures a steady stream of high-quality deal flow, enriching the club's investment opportunities. Demonstrating his commitment and confidence in these ventures, Maxime personally invests in each project presented to club members, ensuring that his interests are closely aligned with those of the group.
Can I invest with my company?
You can invest with a legal entity. It is up to you to inquire about the taxation associated with your country of registration.
What are the fees associated with the investments?
1/ Structuring fees for the operation start at 3%. These fees fund the selection and analysis process of the company you invest in, as well as the Paradise Club's intermediary role when you subscribe to shares of a dedicated investment vehicle (SPV) set up for this operation.

2/ Operational fees finance the Paradise Club's intermediary role between the company, the dedicated investment vehicle, and investors through the structuring of the capital increase and the coordination and supervision of operations necessary for the acquisition of shares.

3/ Profit-sharing ranges from 10% to 30% of the capital gain depending on the deals. This is payable once, only in the event of a capital gain upon resale. We only profit if you profit.
How can one get funding for their project?
To get funding, you must first fill out this form to submit your project.
What are the response times?
We make every effort to respond to you within 10 days.
What are our selection criteria?
Early-Stage: Highly connected to the startup universe, the Paradise Club receives fundraising projects even before they hit the market. By investing very early (Pre-Seed, Seed), it thus achieves investment multiples that are significantly above industry average.

Impact: Here at the Paradise Club, we are not just about numbers; we are about changing the world for the better. We handpick startups that aim to tackle some of the world's biggest challengesβ€”be it climate change, social inequality, or healthcare. Then, we empower these change-makers with the investment and mentorship they need to soar.

Startup Selection: the Paradise Club receives more than 300 pitch decks per month, and we only select up to 3.
What happens if the club cannot raise the expected amount?
A fundraising is considered valid if 75% or more of the target amount is raised. If this 75% threshold is not met, then the investment is canceled and the funds are refunded back to the investors.
What happens if the Club raises an amount greater than anticipated?
In that case, the fundraising is oversubscribed, and the Paradise Club Lead will select the investors who can invest and their allocations.
How can I be informed about the launch of a new fundraising campaign?
Only Club members will be informed of the investment opportunities and will receive an email for each new project presented.
What happens in the event of a new fundraising campaign?
If you have invested in a startup's fundraising campaign and that startup initiates a new round of funding, you could be offered the chance to participate in the second round to avoid dilution. You can also choose not to participate in the new funding round.
How can I make a return on my investment?
Holding shares in unlisted companies is very illiquid, and you can realize a return on your investment in one of the following scenarios:

1/ Sale of the startup.

2/ New fundraising by the startup with a buyout of the historical shareholder shares by the new investor.
What are the tax benefits of investing?
For French investors, there are 2 potential tax benefits to investing in startups:

1/ IR Tax Reduction: Thanks to the IR-PME scheme related to the Madelin law, anyone subject to income tax (IR) can deduct 18% of the amounts invested in the capital of French SMEs, provided that the shares acquired are held for at least 5 years.

2/ Asset-Contribution: Under certain conditions, an entrepreneur selling shares of his company can reduce the tax on his capital gains by reinvesting a portion of the sale proceeds.

If you are an international investor, it depends of your country.

Please note that this does not constitute tax advice. You should consult your own tax, legal, and/or accounting advisors to assess your personal situation. In addition, the Paradise Club does not guarantee in any way that you will be able to benefit from any tax exemptions or benefits.
What is the tax treatment for equity transactions?
If you are a French investor, capital gains from the sale of your shares are taxed from the first euro and fall under the standard income tax regime. These gains must be declared on your income tax return. At that time, you can choose to submit them to:

Either the Single Flat Tax (PFU or flat tax) at a global rate of 30% (including 12.8% for income tax and 17.2% for social contributions)

Or to the progressive income tax scale, and the tax amount will be adjusted by the tax administration according to your marginal tax rate.

If you are an international investor, it depends of your country.

Please note that this does not constitute tax advice. You should consult your own tax, legal, and/or accounting advisors to assess your personal situation. In addition, Paradise Club does not guarantee in any way that you will be able to benefit from any tax exemptions or benefits.
Why should I invest in an SPV?
Investing in an SPV provides several advantages:
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πŸ‘‰ Access to deals even with smaller ticket sizes.
πŸ‘‰ Additional possibility of liquidity within the SPV.
πŸ‘‰ Easier cap table management for the founder.
πŸ‘‰ More bargaining power with VC funds coming in at later rounds of funding.
What rights does an SPV give me?
As a co-investor you will have rights to access to information shared by the startup with the SPV as per the shareholder agreement with the startup. This confidential information is covered by confidentiality clauses in the SPV bylaws.
What are my liquidity options?
As a co-investor in an SPV you will be able to sell your SPV shares:

πŸ‘‰ To other co-investors within the SPV.
πŸ‘‰ To a third-party co-investor after validation by the Deal Lead.
πŸ‘‰ When the SPV receives a purchase offer for the shares held in the target.
Does the Paradise Club accept US Investors?
In most cases, the SPV set up by the Paradise Club can accept US investors, as long as (i) each individual investor’s holding in the SPV remains below 10% and (ii) the US investor does not require specific reporting from the Paradise Club. Β However, investing in a non-US SPV as a US investor can represent a significant administrative burden for the investor. The tax consequences should be assessed individually before making the investment. This is true irrespective of who sets up the SPV and applies in principle for all non-US SPV. Indeed, it is likely that any non-US SPV will qualify as a Passive Foreign Investment Company (”PFIC”) under US tax law. US investors who are shareholders of a PFIC are generally required to file US Form 8621 for each tax year. This is the sole responsibility of the investor.

In addition, US law provides for deterrent tax treatments when investments are made through a PFIC, which can potentially diminish your return. Certain elections (e.g. Qualifying Electing Fund) can be made by the investor but Roundtable is not able to assist with this. Β You should always consult your tax advisor prior to making an investment in a non-US SPV.
What are all the steps to invest in a deal with Paradise Club?
1. Commit to the deal on the platform
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On the deal page, you can enter the amount that you wish to invest in the deal. It will be reviewed by the deal lead, who can modify it or reject it, for instance, if the deal is oversubscribed.

2. Do your KYC / KYB
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If this is the first time you're investing with Paradise Club, we will need to verify your identity. You will need to run your KYC. If you invested with a holding, we will also need to do its KYB.

3. Sign documents
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Once all investors have committed and have their KYC approved, the deal lead can close the deal, and incorporate the SPV. We will then ask you to sign the following documents:
- Subscription bulletin - Summarizing how much you're investing in the SPV and where to wire the funds
- Shareholders' agreement - The contract between all SPV's shareholders
- Bylaws - The SPV's incorporation document

‍4. Wire funds to our platform: Roundtable
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After signing your documentation, you can wire the funds to Roundtable. All information will be available on your subscription bulletin. After this step, you don't have anything else to do.

5. SPV registration by our platform team
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Once all investors have signed their documentation and wired funds, we register the SPV.

‍6. SPV wires funds to the target
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Once the SPV is incorporated, it wires the funds to the target company.

7. Receive all investment documentation
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Once the deal is completed, we will send you all documents related to your investment.
Is the Paradise Club regulated?
The Paradise Club does not provide any investment services, does not perform investment activities, and does not manage alternative investment funds nor undertakings for the collective investment in transferable securities. As such, the Paradise Club is not a regulated entity.

Do you still have questions?

We will be happy to answer any questions you have.