Welcome to the Solara FAQ page.Please use email@example.com to ask questions. Our staff will get back to you within a maximum of 48 hours and usually much quicker than that. Feel free to ask multiple questions.
Solara is a company that specializes in acquiring, capitalizing and operating, innovative new Technology companies. Although Solara endeavors through its extensive and rigorous Due Diligence process, to ensure that both the Technology and the underlying business model supporting the Technology's commercialization are sound, the very act of taking a new company from the completed development stage of its Technology and fully commercializing it, has inherent risks. The risks are mitigated sufficiently in most cases, to warrant the description of Solara's investments, as moderate risk, not high risk. The question then becomes, is the escalated amount of return of several times the current rates achieved through institutional, tax sheltered investment, worth the moderate elevation in risk of a Solara investment? Back to top of page
What kind of ROI can I expect from a Solara investment?
That will ultimately depend upon the Solara investment (which subsidiary Solara company) that you invest in. But, each Solara investment is designed to always pay first, those who invested in it. Solara uses a Fractal Income to pay its Investors. Typically, the Fractal Income will be derived from 5% of the gross revenue of the subsidiary and distributed on a pro-rata basis, amongst the holders of the shares entitled to the Fractal Income. Fractal Income is collected from the gross revenue of the subsidiary's income, before any other expenses are paid. It is held in a separate account from the company's operating funds (not commingled) and paid quarterly from that account to the shareholders of the subsidiary
If 1,000 Solara Members, each boughta $5,000 Security Unit, comprised of 1,000 shares, paying a Fractal Income, that would raise $5,000,000 for the acquisition and commercialization of a new subsidiary company. If the SubCo, when launched, then produced a gross revenue of $1,000,000 a month ($12,000,000 a year), each Member Investor would receive $600/year in Fractal Income, paid quarterly. The $600 in Fractal Income, provides a 12% annualized ROI on the original $5,000 invested by the Member. That is a 5 to 7 times higher ROI, than the average GIC deposited, TFSA account would pay. **NB Please be advised, Solara is making no claim that each, or any subsidiary will gross $12,000,000 in any year's sales, but that this figure is used for what would be considered by most reasonable people, to be an acceptable amount for an example of this nature.
Additionally, there is an equity component to each Solara investment. The Preferred shares of the subsidiary company that each Member Investor purchased, will, 24 months after issue, be convertible to Solara Common "B" shares. The conversion from preferred shares to Common "B", will be as a factor of a valuation equation, described for the preferred shares at the time of their purchase, referencing the value of both the Common "B" shares and the value of the Preferred shares, as delineated by the valuation equation, at the time of the sale. The FMV of the Solara Common "B" shares will be a reflection of the performance and holdings of Solara as a whole. Preferred shares in any subsidiary, are entitled to participate in dividends of the subsidiary (only). Holders of Solara Common "B" shares, participate in a pro-rata portion (by ownership %) of a 1% Fractal Income of the gross revenue of all Solara's subsidiaries, plus participate in dividends of the company as a whole, should they be declared by the Board. Back to top of page
Who runs Solara and what are their backgrounds?
The Principal shareholders of Solara are veteran business people, each with exceptional backgrounds in the creation, marketing, financing and operations of private and public corporations. Their primary skills and experience include reporting and dealing with Security Regulators in the public arena. Solara's Principals have unique skill sets in the use, description and revitalization of Intellectual Property, within the financial reporting processes of Securities Law. Solara also has expertise in bridge financing, arranging of long term debt and equity financing. A brief description of the Solara Principals is contained within the Solara Business Plan, on the investment page of Solara Fund Inc., within the Members Only area of the Solaraclub website. Back to top of page
Can I really invest from my TFSA and not pay taxes on the money I get as a return?
Yes. Canadians have been able to invest in a Tax Free Savings Account since 2009. The premise behind these accounts is to stimulate the economy by affording Canadians an opportunity to invest in somewhat higher risk ventures and offset the risk by not paying any tax on the returns received within the account. With the additional risk, should come additional benefit (higher returns) and with that would come the additional benefit of paying no tax when withdrawing from the account.
The current practice of most Canadian Investors, of placing their TFSA account in GICs with institutional financial companies, is diametrically opposed to the intent of the TFSA program. There is virtually no risk to this type of investment, but there is also certainly no stimulation of the economy as a whole nor of the Technology sector specifically and the returns to the Investors are almost non-existent. Back to top of page
How is it that Solara can afford not to charge its Investors, fees?
During the acquisition process for Technologies, Solara acquires a direct ownership interest in each new Solara subsidiary. Solara receives an operational stipend from each subsidiary (paid after Solara Investors are paid) as well. Solara does well enough for itself, without taking from those who ultimately are paying the freight, which is our Members. Solara believes that we will make money, only if our Member Investors make money.Back to top of page
Why do I have to pay a Membership Fee?
The reason is quite simple. The membership fee performs a couple of functions. Solara derives sufficient revenue from the membership fees to pay for the operation of the Solaraclub.com site itself and pay the wages of support staff required for its operation. Secondly, and this may seem rather blunt, but it is to assist in keeping out those who would simply become members for the sole reason of causing problems. Obviously, a small fee will not keep those determined to be trolls and flamers from entering but it does keep out some. The few who do make it in, we delete as soon as it becomes obvious that they are frivolous Members. Back to top of page
If I invest in a Solara project, how am I assured that Solara won't run off with the money I put up?
Well, at the end of the day, there really isn't much of a guarantee to stop that in any company where someone goes rogue. But, if you analyze our company, the way we have set the capitalization process up, the fact that at every step of the way, Solara ensures that it adheres to Securities legislation in every Province in Canada, it seems like a heck of a lot more work and a lot more risk than a scam would justify. Besides, if Solara does a good job of executing its Business Plan, there is substantially more money in that endeavor, than in the very shortsighted and criminal, misappropriation of funds. Back to top of page
How does Solara find Technology companies to invest in?
The Principals of Solara have a Network of business contacts that is exceptional at feeding back to Solara, leads on Technologies that are stymied in the commercialization process. Additionally, the Solara site itself has a Technology Portal through which people can submit, in full confidentiality, their Technologies. Solara has access to a great many TechCos, seeking capitalization. Back to top of page
How much use is the Solara Due Diligence process in picking winners and losers?
Very little actually. What it does is to verify the veracity of the Technology itself and determine if the underlying business model will support the infrastructure and expenses inherent in the commercialization and operation of the company, and provide sufficient revenue to turn a profit. It is then the responsibility of those running Solara, utilizing their experience and business acumen, to pick the winners and losers. The Principals of Solara have an exemplary record of doing that. Back to top of page
We are in the process of expanding the content on this page from questions that you have asked and from future inquiries by Members and those interested in Solara. Please use firstname.lastname@example.org to ask questions. Our staff will get back to you within a maximum of 48 hours and usually much quicker than that. Feel free to ask multiple questions.