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.
Yes, most funds send your countersigned Subscription Document indicating your membership in the Fund. You should also receive a Welcome Letter from the managers outlining the Series of participation and breakdown of your investment.
Unfortunately, our network does not have access to the company’s most recent financials, or their investor presentation. Our networks leverage the due diligence performed by the company’s most recent investors and base our offerings on the price those investors paid.
Your investment in most funds would be taxed like any other fund investment. Our networks funds are taxed as partnerships, meaning that the fund’s gains and losses would pass through to its investors. Generally, if an investment is held for more than one year before its disposition, any income resulting from that investment would be taxed at the long term capital gains rate. On an annual basis, Investors will receive a Schedule K-1 that updates them on their investment. Note: we are not tax experts and have provided this discussion for informational purposes only and not as personal tax advice. You should consult your tax advisors for guidance specific to your circumstances.
Right of first refusal (ROFR or RFR) is a contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party. In short, the Right of First Refusal is the company’s right to purchase the shares from the shareholder on the same terms as a third parties bid. The company has up to 30 days to make the decision upon a third party submitting a Bona Fide Offer via a Transfer Notice (they may also waive their right, in which case we can proceed immediately).
Following an IPO lockup period, the funds you invested are transferred to your brokerage account for you to hold or sell at your preference.
We cannot guarantee an exit nor a timeline for any of your holdings. However, the majority of investment opportunities are companies who have received institutional financing and have a typical investment horizon of 2-5 years.
Our network presents private offerings, open to accredited and qualified investors only.