To be an accredited investor, a person must have an annual income exceeding $200,000 ($300,000 for joint income) for the last two years with the expectation of earning the same or a higher income in the current year.
A person is also considered an accredited investor if they have a net worth exceeding $1 million, either individually or jointly with their spouse.
We present private offerings, open to accredited and qualified investors only.
Our minimum requirement is $25,000.
Most funds 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 W-9 (W-8 BEN for foreign investors) and Suitability form once. Investors would receive a Schedule K-1 after any liquidity event on their investment(s). All legal and financial documents are prepared with the involvement of outside counsel or accountants, as applicable.
You will receive updates on any material impact indicating new valuations. From company news, new funding rounds, to secondary transactions.
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 1-5 years.
The industry uses the last round of financing and expected IPO range as a pricing guidepost. Other factors may include investor demand, access to the company, other secondary transactions that have occurred and publicly available information.
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).
We will register and help transfer your shares to your account. If you don't have a brokerage account, we can assist you with opening an account at Retired Capital (our partner) and deposit your shares with Charles Schwab. If the shares are subject to a lock-up period (typically 180 days), we would facilitate the transfer after this period.
While our network views the membership interest as a long-term commitment, it may be permissible to sell your interest if needed and upon approval of the manager. We would be able to accommodate the situation by working with you to find a replacement buyer in the fund. Your LLC ownership is transferable, and we can market it to our investor base, but we cannot guarantee we’ll be able to find a buyer.
Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Investing in private companies may be considered highly speculative and involves a high degree of risk, including the risk of substantial loss of investment. Investors must be able to afford the loss of their entire investment. See our Risk Factors for a more detailed explanation of the risks involved by investing through VC Fund’s platform.
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