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Our minimum investment varies with each fund introduction. Typically the minimum investment is $50,000, but will vary depending on the fund introduction.
Investors are Members of a fund (organized as an LLC) that purchases a specific company’s Shares or the economic interests in shares. Most funds we introduce will have a manager that will establish a Series of Interests for the purpose of making a separate and distinct investment in a specific company or companies identified by the Manager; purchasing securities in such company or companies from secondary sources (directly or through forward purchase contracts); or investing in interests of investment funds, special purpose vehicles and other entities (including investment funds and other entities affiliated with the Manager or its affiliates) whose investment portfolios are comprised of one or more companies consistent with the Fund’s general investment focus. Each Series will remain segregated from each other Series.
Selling shareholders are current and former employees, early investors, and advisors. They are typically selling only a portion of their holdings to 1) cover costs associated with exercising and paying taxes on the remainder of their shares 2) life events such as purchasing a home or preparing for a child and 3) to diversify their holdings.
No, you’ll be a member of an LLC that owns either the shares or the participation interests in the economic upside and downside of the shares.
Our paperwork is similar to that of any fund investment, but simpler. An investor would sign a Subscription Agreement, through which they would purchase an interest in the fund (company). In addition, an investor would also complete a one-time W-9 (W-8 BEN for foreign investors) and Suitability form. On an annual basis, investors will receive a Schedule K-1 updating them on their investment. All legal and financial documents are prepared with the involvement of outside counsel or accountants, as applicable.
Yes, you will receive your countersigned Subscription Document indicating your membership in the Fund. You will also receive a welcome letter outlining the Series of participation and breakdown of your investment.
Yes. Our third-party Fund Administrator will issue K1’s annually. We will also update you on any material impact to your investment (company news, new funding rounds, secondary transactions, or indicators to new valuation).
If a company series in which you’ve invested goes public, we would register the shares and work with your brokerage account custodian to transfer the shares. Typically, the common stock is subject to a 180-day lockup, so we would facilitate the transfer after this period.
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