Frequently Asked Questions

Torre Capital is the world's first commission-free tokenized shares platform that gives investors access to exclusive opportunities in pre-IPO companies, unicorn, and soonicorn shares, and other growth startups. Through our platform, you can opt to invest in more than 500 global startups. Our investors have multiple investment options including direct equity purchase, forward contracts, and investment in ESOP shares.

We encourage sophisticated (institutional as well as individual) investors who understand the asset classes and associated risks to invest with us. Our platform is not open to retail investors as all investors should have significant knowledge of the asset class and be capable of withstanding the associated risks before committing any investments. Investors are welcome to reach out for a dedicated knowledge session at [email protected] They can also read more about the platform at our Learn page for more details.

All investors are required to identify as accredited investors and opt-in before making an investment and need to submit required documentation. You can check the definition of an accredited investor here.

  • Create an account in 30 seconds and visit your dashboard to view available opportunities.
  • Browse through available companies and submit your bid.
  • Sign investment agreement and transfer funds to escrow account. Funds are completely safe in an escrow account till the transaction is completed and share ownership transferred.
  • Receive tokenized shares in your wallet. Each tokenized share is backed by 1 actual share of the investee company and identically mirrors all future cash flows.
  • Upon liquidation event, place a request for redemption and receive your proceeds.
  • Investors can also opt to sell their tokenized shares prior to a liquidation event by going into their portfolio and request to sell their shares to other investors on the platform.

We do not have any minimums. You can buy as little as one share of any of the opportunities listed on our platform. In case the per-share price is high, we can provide the facility of fractional ownership as well.

Torre Capital has two kinds of transactions – primary transactions, and secondary transactions. In a primary transaction, you are buying shares directly from a shareholder (VC, Angels, Founders, employees, others) who has registered to sell on our platform. Once your investment is completed in a primary transaction, you receive tokenized shares credited in your wallet on the platform.

Post completion of a primary transaction, the tokenized shares are listed on our secondary platform. You can either opt to hold on to your shares till a liquidation event (IPO, strategic sale), or you can opt to sell your existing holdings from your portfolio to other investors on the platform.

A primary transaction is where a selling shareholder (Venture capital, Angel investor, other shareholders) offers his shares for sale to investors on our platform. All primary transactions show up as live opportunities on our platform. Primary transactions are open for subscription for a limited period of 15-30 days

Shareholders register and offer their shares for sale on the Torre Capital platform. All live opportunities are displayed and shown to investors who can opt to submit a bid at a cut-off price specified by the shareholders or submit a custom bid directly to the shareholders. All primary transactions are open for a limited time during which investors can submit the bids.

Post bid submission, the investor needs to remit funds to the Torre Capital escrow account. Till the time the shareholder does not transfer shares to the Torre Capital custody account, all investor funds are kept securely in the escrow account. Once shares are transferred from shareholders to our custody account, funds are remitted to the shareholder account and shares are then transferred to the Torre Capital custody account. These shares are then tokenized (each tokenized share is backed by one actual share of the underlying asset) and held securely on a digital ledger.

Tokenized shares are credited to the digital wallet of investors in proportion to their investment. The digital shares are stored securely on a distributed ledger and can be traded among investors through the Torre Secondary Platform.

Yes, you can cancel a transaction till the time the bid submission process is not completed, and we will refund the entire amount after deducting the bank charges. It will take between 5-7 working days for the refund to be processed.

If a transaction fails due to shareholders' inability to get company approvals (ROFR approval) in time, you will be refunded your entire amount after deducting the bank charges. Your money is safe at all times in an escrow account till a transaction is successful.

If a transaction fails due to shareholders' inability to get company approvals (ROFR approval) in time, you will be refunded your entire amount after deducting the bank charges. Your money is safe at all times in an escrow account till a transaction is successful.

Investors who hold tokenized shares in their wallets at any point in time can opt to sell their existing holdings through our trading platform or submit a bid to purchase more shares of a company from other existing shareholders. This is referred to as a secondary transaction. Please note that a secondary transaction does not require a ROFR from the underlying company as the actual shares do not exchange hands.

Existing investors can go to their portfolio section in the app/ website and view their existing holdings. Click on the buy/sell button next to each share in your portfolio to buy more from the Torre Secondary Platform, or sell your holdings on the Torre Secondary platform. You can submit a sell order for your existing holdings specifying transaction details like share price, number of shares, etc. Similarly, you can also opt to submit a request to buy more shares of any particular company. Once another investor matches your buy/sell price on the platform, the transaction is executed. The buyer remits funds to the seller through the Torre Capital escrow account in a T+2 cycle. The digital shares are debited from the seller account and credited to the buyer account.

All primary transactions are free of cost to all investors. However, for secondary transactions, we charge a flat 1% brokerage on the transaction value on each leg of the transaction.

Tokenized/digital shares are security tokens issued on a distributed ledger. Each digital share is backed by one actual underlying share of a private company kept in custody with Torre Capital. All underlying assets are audited periodically to ensure complete compliance and protection of investor funds. Your digital shares are stored in a digital wallet on the platform. The digital shared are kept under high security at all times and cannot be transferred to other shareholders without your permission.

When a company goes public, your tokenized shares automatically start reflecting the actual price listed on a public exchange (e.g., NYSE). When the lock-in period expires (as per listing regulations), you can either opt to sell your shares or continue to hold your tokenized shares as long as you want.

Please note that investors will not be able to take possession of actual shares post-IPO. Shares will continue to be in the custody of Torre Capital's custodian partners.

Depending on the jurisdiction of the investee company, a withholding tax or other taxes may apply to investors. In such cases, Torre Capital will withhold the required taxes and provide the necessary documentation required to investors to seek a refund as applicable from their local tax authorities. All other income is taxable in the hands of the individual investors.

Investors can take exposure to Pre-IPO There are 2 types of Pre-IPO transactions available on Torre Capital:

  1. Direct purchase of equity shares
  2. Invest in ESOP shares of startup employees

Direct purchase of equity shares refers to existing shareholders of private companies looking to sell their shares to other investors. We work with shareholders to support their liquidity needs. Once a shareholder’s holdings are verified, the investment opportunity is made live on the platform. Post-transaction completion, shares are transferred to the custody of Torre Capital’s custodian partners and tokenized shares issued to investors. Direct purchase of equity shares is a great way for an investor to participate in the growth potential of the highest quality global startups.

Senior employees of startup companies often have employee stock options as part of their compensation packages. An employee stock option gives the employee the right to purchase shares in their startup at historical valuations anytime during their employment with their company. The right to purchase is called an ‘exercise’ and requires employees to pay a certain price per share to the company plus any applicable taxes. which they can purchase from the company post vesting period. On our platform, employees can opt to secure funding equivalent to the amount required to exercise their options.

Funding of employee stock options allows individual investors to invest in companies that have raised money from top VCs and angel investors and are not looking to raise money from the crowd, or companies that aren't even raising at all. Investors also have the benefit of getting access at discounted prices based on historical valuations. In return for their investment, investors get significant participation in all the future cash flows from the ESOP shares.

Employees seeking ESOP funding can register on our platform to secure funding for their ESOP. Investors who provide funding for ESOP transactions will sign an Option Funding Agreement (OFA) with the shareholder. This allows them to provide funding for the ease of exercise.

The agreement with the shareholders allows investors' profit participation in case of a liquidity event (IPO or company sale). Upon the occurrence of a liquidation event, employees agree to pay the investors their principal along with a certain percentage of upside (ranging between 40% to 70%, depending upon the type of company).

On the flip side, investors bear all risks related to performance issues with the investee company, delays in IPO/other liquidation events, or closure/bankruptcy scenarios.

Typically, employee stock options are vested at historical prices, which means that your entry point as an investor may be at a significant discount to the current price of a high-growth company. In case of a down round (liquidity event happens below the agreed-upon price) - there is still significant protection for the investor. All cash flows will accrue to the investor, till their original investment is recouped before any cash flow accrues to the shareholder. This ensures a much lower loss compared to a direct equity transaction. Please note that employee stock options or ESOP funding have characteristics of counterparty risk unlike the direct purchase of equity.

Forward contracts on direct equity give you the same rights as direct sale of shares, except that the shares are not transferred to Torre Capital until a liquidation event. Forward contracts carry a counterparty risk and cannot be exited before a liquidation event. Forward contracts are ideal for transactions where a shareholder is willing to sell shares, however, cannot immediately transfer shares due to company restrictions.

Torre Capital is an invite-only platform and only accredited investors are We follow Monetary Authority of Singapore guidelines as far as KYC and anti-money laundering laws are concerned. Investors need to provide identity verification and address verification documents, as well as income or asset documents that established them as accredited investors. Investors also need to sign an accredited investor opt-in form, and their risk profiles are checked for suitability to the investment class.

There are a few cases you must consider when entering into an Option Funding Agreement (OFA). You will be paid if the company goes public or gets acquired for cash, but that generally takes a few years. You will start getting returns if the company pays cash dividends, but that is not very common with startups. If the company gets acquired in a non-cash transaction your OFA remains active until there is a cash acquisition or an IPO. If the company goes out of business, the OFA is terminated, and you will not get paid. Therefore, returns should be expected in a 2–3-year time frame and are considered risky and illiquid.

Torre capital is a technology marketplace and that connects investors and shareholders and does not play a fiduciary role with shareholders or investors. Torre Capital (Torre AI Pte Ltd) is not licensed by the Monetary Authority of Singapore. However, we work with Monetary Authority of Singapore licensed asset and digital custodians and have robust processes including escrow accounts to ensure that investors' assets are always protected.

Your assets are completely protected irrespective of what happens to Torre Capital. All assets including cash are securely custodized with a MAS licensed asset custodian, and all tokenized are securely held with a MAS licensed digital custodian. Your tokenized shares continue to remain valid. If anything happens to Torre Capital and its entities, our partners will ensure that investments continue to be held securely and all payouts will be made in an orderly fashion.

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