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The frontier of
European deep tech
Our Investment Topics
Resilience inEnergy & Resources
Our future success in fields like computing and pharma relies on a resilient energy infrastructure. We focus on disruptive innovations that leverage collaboration with leading enterprises to scale the next industrial base.
Future ofComputing
Our progress in various fields, from everyday use to pharma and research, is increasingly driven by computing capabilities, driving a huge demand for compute.
Frontiers inHealth & Bio
Advances in healthcare and life sciences are increasingly driven by the convergence of biology, engineering, and data. This convergence is unlocking more precise, efficient, and accessible solutions for patients.
EUR 1-2M
Initial ticket size
Seed
Stages
European founders
Geography
Investors
Our sophisticated investors include visionary family offices, leading wealth managers, institutions, founders, and senior executives. These individuals and organizations are all committed to shaping the next generation of innovation.
Insights about European deep tech innovation
“We want our members to make financially successful investments”
In this interview, the founder and the current President of Business Angels of Slovenia talk about the state of the nascent Slovenian startup ecosystem and the need for cross-border investments.
“My goal is to take biology to the next level”
In this interview, Orakl Oncology CEO Dr Fanny Jaulin tells how her techbio startup is spearheading a revolution that will bring data science to biology for more precise effective cancer treatments.
The neuroscience of financial decision-making
Assistant Professor Ewa Lombard explains what happens in our brains when we take financial risks and what the biological differences between men and women mean when it comes to investing.
About Verve & Team
Our Conviction is
built on Experience
For 15 years, Verve Ventures has been successfully investing at the essential intersection of science and enterprise. We are not tourists in deep tech; we are natives.
Our team’s strength comes from scientists, engineers, and expert company-builders. We bring more than just finance to the table. We possess the innate, profound understanding of the challenging yet rewarding journey—the process that transforms a peer-reviewed paper into a category-defining product.
Our Team Members
Our Manifesto
Building Europe's Future
History is in motion again and the tectonic plates of the global order are shifting. In an era of global superpowers, fragile supply chains, and renewed political tensions, Europe’s future prosperity and independence will be defined by its ability to be resilient, to innovate and to lead. The transformation of our historic key industries is therefore not a choice; it is an imperative. This challenge is also our greatest opportunity!
History has repeatedly demonstrated that the most powerful answers lie in a combination of human ingenuity and science. The next era of progress will be built on breakthroughs born in the laboratory and forged in the real world. While software optimized the world we had, deeptech will build the world we need, creating both profound impact and market-defining value.
Europe's Imperative: A Generational Opportunity
For decades, Europe has been a powerhouse of research. Now, that scientific excellence has become a strategic asset. This historic industrial transformation is not just a societal necessity; it is a market-defining event that will produce the outlier companies of tomorrow. Investing at the foundation of this shift is the path to generating exceptional, venture-scale returns. The future titans of European industry are being founded today, and we will back them.
What has been missing is the conviction capital to transform that brilliance into sovereign industrial strength and global leadership. That time is now. We invest exclusively in Europe because this unique convergence of necessity and ingenuity creates a once-in-a-generation investment opportunity.
Insights about European deep tech innovation
“We want our members to make financially successful investments”
In this interview, the founder and the current President of Business Angels of Slovenia talk about the state of the nascent Slovenian startup ecosystem and the need for cross-border investments.
“My goal is to take biology to the next level”
In this interview, Orakl Oncology CEO Dr Fanny Jaulin tells how her techbio startup is spearheading a revolution that will bring data science to biology for more precise effective cancer treatments.
The neuroscience of financial decision-making
Assistant Professor Ewa Lombard explains what happens in our brains when we take financial risks and what the biological differences between men and women mean when it comes to investing.
Our Investment Topics
Resilience inEnergy & Resources
Our future success in fields like computing and pharma relies on a resilient energy infrastructure. We focus on disruptive innovations that leverage collaboration with leading enterprises to scale the next industrial base.
Future ofComputing
Our progress in various fields, from everyday use to pharma and research, is increasingly driven by computing capabilities, driving a huge demand for compute.
Frontiers inHealth & Bio
Advances in healthcare and life sciences are increasingly driven by the convergence of biology, engineering, and data. This convergence is unlocking more precise, efficient, and accessible solutions for patients.
Topic - Bio & Health
Better Health through
Deep Tech Innovation
A new era of human health is emerging, driven by the convergence of biology, data, and computation. Europe’s world-class research, engineering talent, and rich healthcare data are enabling advances in automation, precision engineering, and AI – making healthcare more precise, efficient, and accessible.
Frontier in Health and Bio:
Bridging science, data, and compute
Accelerating Pre-clincial Discovery
Data, compute, science and engineering to unlock novel biology and accelerate drug development.
Bio Scale-Up
New tools enabling scalable, modular, and cost-efficient production and delivery of bio-based products.
Digital Health
AI-enabled digital tools to transform how patients are monitored and how healthcare is delivered.
EUR 1-2M
Initial ticket size
Seed
Stages
European founders
Geography
Portfolio Entrepreneurs about Health & Bio
Karsten Lindhardt
CEO & Founder Biograil
“Patients would be more than happy to take a capsule instead of injecting themselves. This is what I want to achieve with Biograil, bring relief to these patients by offering an oral delivery route instead of injections. Our strongest asset is simplicity. Our solution uses just a few elements, and it enters the wall of the intestine with the pressure the body creates itself.”
Health & Bio
Investment Team
The members of our investment team are scientists, engineers and investors. These team members focus on Techbio investments:
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Portfolio Overview
If you are building frontier tech in Europe, we want to be your first partner.
Portfolio Overview
Our Investment Topics
Resilience inEnergy & Resources
Our future success in fields like computing and pharma relies on a resilient energy infrastructure. We focus on disruptive innovations that leverage collaboration with leading enterprises to scale the next industrial base.
Future ofComputing
Our progress in various fields, from everyday use to pharma and research, is increasingly driven by computing capabilities, driving a huge demand for compute.
Frontiers inHealth & Bio
Advances in healthcare and life sciences are increasingly driven by the convergence of biology, engineering, and data. This convergence is unlocking more precise, efficient, and accessible solutions for patients.
Investors
Where Investors commit to European innovation
Our sophisticated investors, including visionary family offices, leading wealth managers, institutions, founders, and senior executives shape the future with us. They do this either by building their own Venture Capital portfolio of direct investments or by joining one of Verve’s funds.
Unique Solutions for VC Investing
Verve delivers strategic access to Europe’s most ambitious deep tech ecosystem. With us, you invest in the most competitive opportunities, partnering directly with top-tier VCs.
Build your Personal Portfolio
Choose from professionally selected, highly competitive ventures that align with your vision.
Invest in the Verve Fund
Access a diversified strategy through an institutional-grade fund.
Custom-Built Mandate
Advisory solutions designed for the distinct requirements of your capital, your firm, and your client mandates.
Investor Benefits
When you partner with Verve, you invest with confidence, fully backed by an experienced, professional VC firm.
Seamless Access
Co-invest with the leading professional VC investors in the top European deep-tech startups.
Expert Guidance
Access the expertise of Verve’s top-tier VC professionals. For decisive guidance on navigating Europe’s major deep tech opportunities.
Portfolio Management
Institutional-grade portfolio management and reporting, digitized and updated by Verve.
Ines Kljucar
Chief Commercial Officer, Phoenix Mecano
“Every single investment opportunity that is on Verve’s digital platform has already undergone an in-depth analysis by clever people. There is an essential aspect of risk minimization to this. But since the platform provides the documentation necessary as well, I can do my own research and come to a conclusion, which I like a lot.”
Martin Scholl
Former CEO of Zürcher Kantonalbank
“When you listen to Verve’s investment managers elaborating during an investor call on why they believe in a startup they selected, you can see their professionalism.”
Jean-Pierre Wyss
Founder & Head of Production u-blox
“Verve Ventures does all the heavy lifting, enabling me to build a diversified top quality startup portfolio without all the work that this would usually entail.”
Co-Founders Verve Ventures
Steffen Wagner & Lukas Weber
Apply and become an Investment Partner
- Submit your confidential profile
- Talk with a Verve investment professional
- Upon approval, deploy capital into opportunities that define your vision
Topic - Future of Computing
Today’s founders driving tomorrow’s intelligence
Our progress in various fields, from everyday use to pharma and research, is increasingly driven by computing capabilities, driving a huge demand for compute. Europe excels in research and talent, with companies like DeepMind showcasing this strength. The combination of demand and talent density fosters a significant number of computing-related startups emerging from prestigious labs. The next ASML is already being developed.
Focus Areas
Disruptive Computing Platforms
Now is the time to develop quantum Optical Computing, Neuromorphic Computing, and more. With high risks, and massive potential returns, these technologies present a true venture case.
Enabling Computing Infrastructure
From advanced manufacturing, to memory, to data exchange and networking technologies, we invest in companies that manage to solve key bottlenecks for tomorrow’s computers.
Breakthroughs on the Edge
Innovations in edge processing, sensors and packaging are required to be able to fulfil the value promise of AI. We see high-growth opportunities in areas like robotics and augmented reality.
EUR 1-2M
Initial ticket size
Seed
Stages
European founders
Geography
Portfolio entrepreneurs
about the future of computing
Francesco Manegatti
CEO, Co-founder ncodin
“NcodiN allows chipmakers to pack supercomputer-level capacity into a single processor with its photonic interposer. We are happy to have Verve on board, with deep conviction and the ability to understand the deep end of deeptech.”
Dr. Patrick Heissler
CEO Scrona
“Verve led our Seed round and was a hands-on and reliable sparring partner and challenger throughout our growth journey so far. It’s the partner you want to have on your side when you start with a radical new technology in Europe with the ambitious goal of changing your industry on a global level.”
Future of Computing
Investment Team
The members of our investment team are scientists, engineers and investors. These team members focus on the Future of Computing investments:
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Topic - Energy & Resources
Entrepreneurs driving
growth and resilience
Our future success in fields like computing and pharma relies on a resilient energy infrastructure. We focus on disruptive innovations that leverage collaboration with industry leaders to scale the next industrial base. Europe’s manufacturing prowess will see many significant players emerge in this field.
Resilience in Energy & Resources:
Developing the Industrial Base of Tomorrow
Resources:
Critical Material & Recycling Solutions
Rethinking global supply chains and moving towards a more circular economy is key. Critical primary materials need to be used intelligently, to limit environmental impact and ensure geopolitical independence.
Energy:
Clean Energy Sources & Infrastructure
Reducing greenhouse gas emissions presents an opportunity to promote energy independence and strengthen our supply chains.
Decarbonization:
Industrial Transition
Achieving our net-zero targets requires a reorganization and re-engineering of our industries. For emissions that cannot be avoided, we need to develop technologies to capture, remove and store them permanently.
EUR 1-2M
Initial ticket size
Seed
Stages
European founders
Geography
Portfolio Entrepreneurs
about Energy & Resources
Malte Feucht
CEO & Co-founder Phlair
“Verve has a deep understanding of what it means to scale hardware. They are very hands-on and supportive, but also trusting founders to steer the ship.”
Sarah Fleischer
CEO & Co-founder tozero
“Verve Ventures is a true deep tech lover not hesitant to boost entrepreneurs who do the hard things transforming our industries into a sustainable and regenerative manner.”
Johannes Tiefenthaler
Co-CEO & Co-founder neustark
“Verve Ventures’ commitment to climate tech and its network of investors from the construction sector and other industries has proven very valuable for us.”
Philip Kessler
CEO & Co-founder Turn2X
“There is a lot of uncertainty, about regulation, technological and market issues, and what will work eventually. But at one point, we will need to tell our children if we tried everything we could or not. Since with Turn2X we tackle a domain that is responsible for almost 15% of emissions, the impact that we can have if we succeed is a big motivation for me.”
Energy & Resources
Investment Team
The members of our investment team are scientists, engineers and investors. These team members focus on Energy & Resource Tech investments:
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Join
Apply and become an Investor
Get access to Europe’s most ambitious deep tech ecosystem, and invest in companies that align with your vision.
With annual investments of EUR 60-70 mio, we belong to the top 10% most active startup investors in Europe. We therefore get you into competitive financing rounds alongside other world-class venture capital funds.
Create Your Account
Submit your confidential profile
Get Accredited
Talk with a Verve investment professional and get accredited. We only accept qualified private investors, professional, and institutional investors. The assessment is based on the criteria defined by Swiss law.
Start Investing
Once you are accredited, you have immediate access to our investment opportunities.
Investor Relations Team
Our investor relations team is happy to answer your questions. Please contact us investors@verve.vc
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Terms of use
TERMS OF USE
1. GENERAL PROVISIONS
1.1. Verve Capital Partners AG ("VERVE"), through its website www.verve.vc ("Website"), provides notably a meeting place for entrepreneurs of early stage ventures and investors who visit the Website (each a "User"), online business and corporate management tools and services ("Business Management Tools"), and other products and services available on the Website (collectively "Services").
1.2. Users may choose to register on the Website either as entrepreneurs with early stage ventures ("Entrepreneurs") or as investors interested in early stage ventures ("Investors"); by registering on the Website Entrepreneurs and Investors (each a "Registered User") create an account ("Account") and get access to additional content and features.
1.3. Any User who creates and/or uses an Account for a company or third party individual represents and warrants that (a) he is the rightful representative of this company with signature right or is otherwise duly authorized to create such Account and (b) he is fully authorized to use such Account, in particular to publish information on behalf of such company or third party individual.
1.4. By accessing the Website and/or creating an Account, Users agree to abide by the present terms and conditions (the "Terms"). Users declare that they have read and understood the Terms and declare their consent with the Terms. Users who do not agree to abide by the Terms shall not use the Website.
1.5. VERVE reserves the right to amend the Terms at any time. Registered Users may be notified of such amendments. Users, who do not agree to abide by the Terms after such amendment, shall cease their use of the Services and cancel their Account, if any.
1.6. VERVE and the Website are not supervised by the Swiss Financial Market Supervisory Authority ("FINMA"). VERVE's business in connection with the Website is not subject to financial markets regulation, in particular the Federal Act on Collective Investment Schemes ("CISA").
1.7. Users shall not use VERVE to market services, particularly investment advisory services, which might subject VERVE or the Services provided by VERVE in connection with the Website to FINMA supervision or to the scope of CISA.
1.8. The Website and its content are not directed at, or intended for distribution to, any person or entity who is a citizen or resident of, or located or established in, any jurisdiction where in particular the use of the Website or direct investments in presented start-ups would be contrary to applicable law or regulation or would subject VERVE to any registration and/or licensing requirements and/or to any supervision in such jurisdiction. USERS COVENANT THAT THEY ARE NOT SUBJECT TO LEGAL OR REGULATORY RESTRICTIONS WHICH MAY AFFECT THEIR ELIGIBILITY TO ACCESS AND USE THE SERVICES, CREATE AN ACCOUNT OR TO PARTICIPATE IN ANY TRANSACTION IN CONNECTION WITH THE SERVICES. PROFESSIONAL LEGAL ADVICE SHALL BE SOUGHT IN CASE OF ANY DOUBT. USERS ARE IN PARTICULAR SOLELY RESPONSIBLE FOR THE SWISS FEDERAL AND LOCAL TAX CONSEQUENCES, THE U.S. FEDERAL TAX CONSEQUENCES AS WELL AS ANY OTHER TAX CONSEQUENCES UNDER THE LAW OF ANY STATE OR RELEVANT LOCAL AUTHORITY AND SHALL SEEK PROFESSIONAL ADVICE IN CASE OF ANY DOUBT.
2. THE ECOSYSTEM
2.1. The Website contains a network section (the "Ecosystem") where Users may create and administrate a public profile with general information respective to a venture (the "Company Profile").
2.2. To the extent an Entrepreneur administrates the Company Profile for his own venture, the Entrepreneur is solely responsible for such Company Profile. This includes any formal control, updating, amending and deleting of any information contained in the Company Profile. Entrepreneurs commit to ensure that none of the information contained in the Company Profile is false or misleading.
2.3. Company Profiles are accessible to any User, including such Users who are not Registered Users, and any User may share the information contained in any Company Profile via social networks or otherwise.
3. INVESTMENT PROPOSALS
3.1. Entrepreneurs may submit investment proposals, such as financial and other data, an emission prospectus (Emissionsprospekt) or any other content relating to their venture (the "Investment Proposal") to Investors. The submission of Investment Proposals by Entrepreneurs is subject to a separate agreement between VERVE and the submitting Entrepreneur.
3.2. Via their Accounts, Investors may access executive summaries of all Investment Proposals submitted by Entrepreneurs.
3.3. Upon request to VERVE and subject to approval by the respective Entrepreneur, an Investor may access complete Investment Proposals via his Account.
3.4. The Investors agree that the Investors shall keep confidential any content and/or information of the Investment Proposals, unless otherwise agreed with the Entrepreneurs.
3.5. Investors acknowledge that investments involve significant risks and the value of any investment may increase or decrease; a complete loss is always possible.
3.6. VERVE strongly recommends Investors not to rely solely on the Investment Proposals but to obtain relevant and specific professional advice and to conduct a complete due diligence before making any investment.
3.7. Investors shall not bypass VERVE when investing in a venture after they have become aware of an investment opportunity through an Investment Proposal which is available on the Website or was communicated to Investors by VERVE in a newsletter or in any other way. If an Investor should bypass VERVE when making such investment, VERVE will claim from such Investor a fee equaling 15% of interest acquired by the Investor through such investment.
4. INVESTOR QUALIFICATION
The registration and the status of Registered User, and investing via the Website are available only to natural persons and legal entities, who (which) (i) are sophisticated investors; (ii) have sufficient knowledge of venture capital investment and funding; (iii) have a sound understanding of risks; and (iv) (for a natural person or a legal entity’s representative) are at least 18 years old or of legal age in their country of residence. VERVE may, in its sole discretion, refuse to offer access to any natural person or legal entity and change its eligibility criteria at any time.
5. BUSINESS MANAGEMENT TOOLS
5.1. VERVE provides additionally the Business Management Tools which enable Users to store data through their Account and to notably (i) publish jobs opportunities via the Website; (ii) create and establish reports from the stored data; (iii) create and establish map / cap tables; (iv)create and establish investment portfolios; and (v) access and use polling services. VERVE may also publish public jobs opportunities of the Registered Users, whether they use or not the Business Management Tools, and any general conditions of the Registered Users are hereby waived.
5.2. All detailed functionalities of the Business Management Tools as well as the pricing of such Business Management Tools are further described at https://www.verve.vc
5.3. All data, messages, text, files, images, photos, or other materials ("User Content") stored by Users by accessing and using the Business Management Tools are confidential by default (except for public information related to the publishing of job opportunities). Users only shall determine whether User Content will be divulgated, transmitted, communicated or shared publicly and/or with third parties.
5.4. Users understand and agree that all User Content stored on, transmitted through, or linked from the Business Management Tools are the sole responsibility of the User from whom such User Content originates. VERVE shall have no liability related to the User Content, whether arising under intellectual property laws, privacy, or otherwise.
5.5. Users represent and warrant that User Content and any content Users request to receive directly or indirectly: (i) shall not infringe any intellectual property right, or other proprietary right or right of publicity or privacy; (ii) shall not violate any law or regulation; (iii) shall not be defamatory or trade libelous; (iv) shall not include incomplete, false or inaccurate information about the User or any information about any other individual; (v) shall not be inappropriate language; and (vi) shall not contain any viruses, Trojan horses, worms, time bombs, cancel bots or other computer programming routines that are intended to damage, detrimentally interfere with, surreptitiously intercept or expropriate any system, data or personal information.
5.6. VERVE reserves the right (but not the obligation) to take any action with respect to User Content, if VERVE believes that it may create liability for VERVE or may cause VERVE to lose the services of VERVE’s Internet service providers or other suppliers and/or providers.
5.7. VERVE cannot, nor do VERVE undertakes any obligation to, control User Content that is stored on, transmitted through, or linked from the Business Management Tools. VERVE does not make any representation or warranty, express or implied, as to the accuracy, timeliness, or completeness of such User Content, nor does VERVE undertake to verify, update or correct such User Content. VERVE reserves the right to adjust, refuse or remove any User Content at VERVE’s sole discretion, in particular to comply with any applicable law.
6. OTHER SERVICES
VERVE may provide services that are not directly related to the Website, including business consulting services for Entrepreneurs. Such services are subject to separate agreements and the present Terms do not apply.
7. NO LIABILITY
7.1. To the extent permitted under applicable law, VERVE, and any of its employees, officers, directors or affiliates (each a "VERVE Person"), waive all liability for any direct, indirect, consequential or special losses or damages of any kind whatsoever, arising from, or in connection with, the access and use of the Services, including authorized or unauthorized third party use of Accounts, or any reliance on any of the content provided on the Website, in particular in any Investment Proposal and/or emission prospectus (Emissionsprospekt) of Entrepreneurs, or stored on, transmitted through, or linked from the Business Management Tools.
7.2. Users shall hold VERVE and VERVE Persons harmless against any damage arising from their access and use of the Services. In particular, Users shall indemnify VERVE and VERVE Persons for, and hold VERVE and VERVE Persons harmless from, any claim (including legal and attorneys' fees) by any third party in connection with their access and use of the Services, including authorized or unauthorized third party use of Accounts.
7.3. VERVE uses reasonable efforts to obtain information from sources which VERVE believes to be reliable. However, VERVE does not endorse, support, represent or warrant for accuracy, completeness or reliability of any content, information, opinion or forecast provided on the Website by the Users.
7.4. VERVE provides the Services and all content thereon for information purposes only, without express or implied warranties of any kind. VERVE does not solicit any offer, or advice or recommend to buy or sell interest in any company or to conclude any transaction of any kind whatsoever.
7.5. VERVE does not warrant for uninterrupted and/or error-free availability and/or accessibility of the Services, in particular the Website, nor for continuous availability of information once provided on the Website at all times.
7.6. VERVE reserves the right to temporarily or definitively, partially or completely block or cancel any Account at any time for any reason without notice. VERVE excludes all liability for the loss of any content, in particular User Content, and any other loss, loss of profit or any other damage that might arise in connection with the blocking or cancellation of any Account.
7.7. The Services may include advertisements or similar content, and Users have no claim against VERVE for the placement of advertising or similar content notably on the Website or in connection with the display of such content.
7.8. The Website may contain links to other websites. VERVE is not responsible for the content, accuracy or opinions on such websites and such websites are not investigated, monitored or checked for accuracy or completeness.
8. PRIVACY POLICY
8.1. VERVE’s Privacy Policy is accessible at https://www.verve.vc/privacy
9. INTELLECTUAL PROPERTY
9.1. VERVE owns the copyright and all intellectual property rights on content published on the Website by VERVE or has acquired an appropriate license to publish such content on the Website. Users retain the copyright and all intellectual property rights on User Content stored on, transmitted through, or linked from the Business Management Tools.
9.2. Users grant VERVE a worldwide, nonexclusive, royalty free, perpetual license on content, including on User Content, they provide to VERVE in order to use such content in connection with the Website. Users declare that the provision of such content to VERVE does not, and VERVE's use of such content in connection with the Website will not, infringe any third party rights.
9.3. Users grant VERVE a worldwide, nonexclusive, royalty free, perpetual license to use their trade-names and trade-marks in order to market the Website, in particular by referring to such Users' use of the Website and the Services.
9.4. VERVE allows its Users to share Website content for non-commercial purposes provided that such Users refer to the Website when sharing such content, to the exception that Registered Users shall not share or make publicly available any content of the Website that is reserved to Registered Users.
9.5. Users shall not share any content (in particular if collected by spidering, crawling or otherwise processing the Website) provided on, from, to or through the Website and the Services for commercial purposes without VERVE's prior written consent.
9.6. Users who think that the provision of any content on the Website infringes any copyright or other intellectual property right may at all times contact VERVE at info@verve.vc and ask VERVE to remove such content from the Website.
10. DURATION AND TERMINATION
10.1. The Terms are applicable to any User as long as such User continues to access and use the Services or maintains an Account, if any.
10.2. Subject to article 10.3., Users may at all times terminate their relationship with VERVE governed by these Terms by ceasing their access and use of the Services and cancelling their Account, if any.
10.3. If a User ceases to use the Services and cancels his Account, if any, provisions of the Terms which are by their nature meant to survive, shall stay in effect, in particular provisions regarding bypassing (article 3.7), liability (article 7.), the relevant articles of the Privacy Policy as set forth in the Privacy Policy, intellectual property (articles 9.2./9.3.) as well as governing law and jurisdiction (article 11.).
11. GOVERNING LAW AND JURISDICTION
11.1. The Terms shall be governed by Swiss law at the exclusion of any provisions of conflict of law rules that might lead to the application of other than Swiss law.
11.2. Users irrevocably submit to the exclusive jurisdiction of the competent courts of Zug, Switzerland, for any conflict arising from or in connection with the use of the Services.
Risk Warning
RISK WARNING
Investing in start-up and early stage businesses is highly risky. Every investor on Verve Ventures has to be aware of the following:
Loss of investment
Most start-ups fail and it is therefore very risky to invest in these businesses. If you invest in a start-up, it is very likely that you will lose all, or part, of your investment. Therefore, you should only invest an amount that you are willing to lose and should build a diversified portfolio to spread risk. If a business you invest in fails, neither the company – nor Verve Ventures – is obliged to pay you back your investment.
Illiquidity
Any investment you make through the Verve Ventures platform will be highly illiquid. There is no secondary market for the shares of the companies that Verve Ventures presents as investment proposals. This means that you are unlikely to be able to sell your shares until and unless the company you invested in floats on a securities exchange or is bought by another company. Even for a successful business, a flotation or purchase is unlikely to occur for a number of years from the time you make your investment.
Rarity of Dividends
Dividends are payments made by a business to its shareholders from the company’s profits. Start-up and early stage companies extremely rarely pay dividends. Profits are typically re-invested into the business to fuel growth and build shareholder value. This means that if you invest in a business via the Verve Ventures platform, even if it is successful, you are unlikely to see any return of capital or profit until you are able to sell your shares in the company.
Dilution
Any investment you make through the Verve Ventures platform is likely to be subject to dilution. Dilution occurs when a company raises additional capital by issuing new shares. If you own shares in a company and this company issues new shares that are purchased by new investors, the percentage of the company that you own will decline. These new shares may also have certain preferential rights to dividends, sale proceeds and other matters, and the exercise of these rights may work to your disadvantage. Your investment may also be subject to dilution as a result of the granting of options (or similar rights to acquire shares) to employees, service providers or other third parties connected with the company.
Diversification
Diversification involves spreading your money across multiple investments to reduce risk. Investing in startups should only be done as part of a diversified portfolio. This means that you should invest small amounts in multiple early stage companies rather than a lot in one or two companies. Investors should only invest a small proportion of their available investment funds in early stage companies and should balance this with safer and more liquid investments.