FAQs

Right of first refusal (ROFR or RFR) is a contractual right that offers the holder the opportunity to engage in a business arrangement with the owner of something on defined conditions before the owner may enter into that transaction with a third party. The Right of First Refusal is, in brief, the company's right to acquire shares from a shareholder on the same conditions as a third-party offer. The corporation has up to 30 days to make a decision after receiving a Transfer Notice including a Bona Fide Offer from a third party (they may also waive their right; in which case we can proceed immediately).

The majority of fund paperwork is comparable to that of any fund investment but easier. An investor would sign a Subscription Agreement in order to acquire a portion of the fund (company). Additionally, the investor would fill out a W-9 (W-8 BEN for overseas investors) and Suitability form just once. Investors would get a Schedule K-1 each year that updated them on their investment. All legal and financial documentation is drafted with the assistance of external attorneys and accountants, if appropriate.

If a company in which you have invested becomes public, our third-party affiliate Carta will register the shares and work with the custodian of your brokerage account to transfer the shares. Typically, the common stock is subject to a 180-day lockup, therefore we would arrange this transfer upon the expiration of that time.

Our minimum investment size varies with each SPV introduction.

Despite the long-term nature of these investments, it may be possible to sell your stake if necessary and with the manager's consent via a Secondary Transaction Program. We might accommodate the issue by assisting you in locating a substitute buyer for the fund. The ownership of your investment is transferrable, and we may offer it to our investor base. The sale cannot be guaranteed.

The latest round of funding and anticipated IPO range serves as price benchmarks for the sector. Other variables may include investor demand, corporate accessibility, other secondary transactions, and publicly accessible information.

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) diversify their holdings.

After the initial public offering (IPO) lockup period has passed, the funds in which you invested will be able to transfer shares to your brokerage account so that you can either keep them or sell them as you see fit. When should I anticipate the company that I have invested in to either go public or be purchased by another firm? We are unable to provide a schedule or guarantee an exit for any of your holdings at this time. Nevertheless, the vast majority of possibilities for financial investment are presented by businesses that already have access to institutional funding and have a typical investment horizon of two to five years.

We are a Reg 506 (c) fund. Our investments are open to only qualified and accredited investors.

Yes. Most funds have a third-party Fund Administrator, who should issue K1s annually. Our network should also update you on any material impact on your investment (company news, new funding rounds, secondary transactions, or indicators of new valuation).

Yes, it is possible. However, we currently do not accommodate investments from self-directed IRAs.

Yes, your countersigned Subscription Document reflecting your membership in the Fund will be provided to you. In addition, the management will send you a letter defining the Series of participation and detailing your investment.

Your investment in the majority of funds would be taxed as any other investment in a fund. Our network funds are treated as partnerships, so the earnings and losses of the fund are passed on to its investors. Generally, if an investment is held for more than a year prior to its sale, the income from that investment is taxed at the long-term capital gains rate. Investors will get a Schedule K-1 annually that updates them on their investment. This talk is offered for informational reasons only and does not constitute personalized tax advice. Consult your tax professionals for advice tailored to your unique situation.

People who are selling their shares of the company include current and former workers, early investors, and consultants. In most cases, they are simply selling a fraction of their holdings in order to 1) cover the fees connected with exercising their options and 2) pay taxes on the remaining shares in their portfolio. 2) experiences in life, such as buying a house or getting ready to have a kid, and 3) the diversification of their possessions.