FAQs Archive - Page 7 of 11

Q: Can I sell before the company goes public? What are the methods if I want to exit or cash out my investment?

While we view your membership interest as a long-term commitment, in most instances, your LLC ownership is transferable after a twelve month holding period if you own at least 2% of the fund with the permission of the manager. If you meet the requirements to be transferable, you can explore an exit using our Express Deals product to create a sell order and list your offering on our platform. To find out whether you are eligible to sell, please visit your My Investments page and click the "Explore An Exit" button for the investment you would like to exit. Please note that we cannot guarantee that we will ultimately be able to find a buyer. Because we cannot guarantee a buyer, and because there can be no guarantee of when an IPO or other exit will occur, you should be prepared to hold your investment for an indefinite period.

Q: When can I expect the company I’m in investing in to go public or get acquired?

We cannot guarantee an exit nor a timeline for any of our offerings. However, the majority of investment opportunities on our platform are companies who have received institutional financing from late-stage or growth funds, who have a typical investment horizon of 2-5 years. Given the relative illiquidity of investments available via the IPOGO platform, they are not suitable for all investor profiles. Please consider your investment time horizon when investing through IPOGO.

Q: What happens if a company in which I invested goes public?

When a company goes public, there are some procedural steps and legal requirements that must be followed. Generally, we will seek to unwind the IPOGO fund or series into which you invested and transfer a number of shares, equivalent to your pro-rata ownership in the fund or series, to a brokerage account you designate. The shares held by the fund are generally subject to two principal types of transfer restrictions. They are subject to a standard IPO lock-up, which means that for a period of 180 days after the IPO, the shares cannot be transferred. The shares held by the fund are also considered Restricted Securities under the securities laws. Generally, this means, even post-IPO, the shares can't be sold on the open market until they've been held for one year. Together with the lock-up, shares held by the fund can't be sold on the open market until the later of (i) expiry of the lock-up or (ii) one year following purchase. Generally, the company will use a transfer agent, who will hold custody of the pre-IPO shares. After the completion of the IPO, the shares purchased by the fund will be held with the transfer agent. Once the lock-up period expires, or one year has passed since purchase, IPOGO will either (i) transfer the shares from the account of the fund to a brokerage account you designate (after which you can do whatever you like with the shares) or (ii) sell the shares in the open market and deliver to you your portion of the proceeds.

Q: How long can I hold this investment?

If a company IPOs, we can transfer the shares to your brokerage account for you to hold or sell at your preference. Not all companies will IPO or be acquired. You should be prepared to hold your investment for an indefinite period.

Q: Will I be receiving any financial updates for my investment? How often?

Yes. Our third party Fund Administrator will issue K-1s annually. IPOGO will also update you on any material impact to your investment (company news, new funding rounds, secondary transactions or indicators to new valuation).

Q: Will I receive any formal or legal documents stating my investment?

Yes, you will receive Subscription and LLC Agreements indicating your membership in the fund. You will also receive closing documents from IPOGO outlining the details of your investment.

Q: How can I find the documents from my investment?

You can find all deal related documents by going to your My Investments page, clicking on the deal of interest, then scrolling down to Documents .

Q: What is a family office?

In general, family offices are entities established by wealthy families to manage their wealth, plan for their families’ financial future, and provide other services to family members. Specifically, “family office” is defined under the Investment Advisers Act of 1940 as a company that: has no clients other than family clients is wholly owned by family clients is exclusively controlled by one or more family members and/or family entities; and does not hold itself out to the public as an investment adviser

Can I sell before the company goes public? What are the methods if I want to exit or cash out my investment?

By minixpower|2021-01-10T22:11:02+00:00January 10, 2021|Investor - Investment Management|

While we view your membership interest as a [...]

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When can I expect the company I’m in investing in to go public or get acquired?

By minixpower|2021-01-10T22:09:08+00:00January 10, 2021|Investor - Investment Management|

We cannot guarantee an exit nor a timeline [...]

0

What happens if a company in which I invested goes public?

By minixpower|2021-01-10T22:08:00+00:00January 10, 2021|Investor - Investment Management|

When a company goes public, there are some [...]

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How long can I hold this investment?

By minixpower|2021-01-10T22:06:44+00:00January 10, 2021|Investor - Investment Management|

If a company IPOs, we can transfer the [...]

0

Will I be receiving any financial updates for my investment? How often?

By minixpower|2021-01-10T22:06:08+00:00January 10, 2021|Investor - Investment Management|

Yes. Our third party Fund Administrator will issue [...]

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How is my investment treated for tax purposes?

By minixpower|2021-01-10T22:04:45+00:00January 10, 2021|Investor - Investment Management|

Your investment in an IPOGO fund would be [...]

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Will I receive any formal or legal documents stating my investment?

By minixpower|2021-01-10T22:00:02+00:00January 10, 2021|Investor - Investment Management|

Yes, you will receive Subscription and LLC Agreements [...]

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How can I find the documents from my investment?

By minixpower|2021-01-10T21:58:59+00:00January 10, 2021|Investor - Investment Management|

You can find all deal related documents by [...]

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Who is a family client?

By minixpower|2021-01-10T21:55:06+00:00January 10, 2021|Investor - Accredited Investor|

“Family clients” are family members (including spousal equivalents), [...]

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What is a family office?

By minixpower|2021-01-10T21:51:59+00:00January 10, 2021|Investor - Accredited Investor|

In general, family offices are entities established by [...]

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