FAQs Archive - Page 6 of 11

Q: Can I modify and/or cancel my sell order once it has been posted?

Yes, you can modify or cancel your sell order at any time until an investor has completed the necessary paperwork to officially claim your offering. At that point, you will no longer be able to make changes to your sell order. Please note that your sell order is considered binding—akin to a “good-til-cancel” order—if actively posted on our platform. To modify or cancel your sell order, visit your My Transactions page and click the Modify Sell Order button for the corresponding offering.

Q: What happens after I create my sell order?

If you received a suggested price range and likelihood of sale when creating your sell order, and you have gone through the transaction flow and clicked submit, then your sell order will be posted within 24 hours to the given company page for IPOGO investors to purchase. However, if you weren’t presented with either of those functions, it means we are still working on creating a price range for the company. Once we have this completed, you will receive a follow-up email from us asking to reconfirm your sell order. Then, once you complete this process, your sell order will be posted to the given company page.

Q: Why can I sell more of my shares in one particular company versus another?

In order to sell your holdings via an Express Deal, you need to hold at least 2% of the initial fund (in addition to holding the position for at least a year). Additionally, the size of your sale must also clear the 2% threshold. As 2% of a given fund differs from fund to fund, the number of shares you will need to hold/sell to hit this 2% requirement for sale will differ depending on the size of the given fund and your initial investment.

Q: What does Market Demand mean when I am creating a sell order for an Express Deal?

The Market Demand graph serves as a data point for potential sellers to view the total amount of indications of interest by IPOGO investors in a given company. In other words, Market Demand shows investor sentiment, rather than explicit open buy orders. One way a potential seller might utilize this data point is the following: Jane wants to sell her position in The Awesome Company that she invested in through an IPOGO fund. She wants to sell at $10.00 per share. The Market Demand metric shows that there is $200,000 worth of investor interest in The Awesome Company. Therefore, Jane might aim to sell up to 20,000 units rather than 40,000 given the known investor interest in this company.

Q: What is an Express Deal?

An Express Deal is a single company fund offering in which the seller in the deal acquired their position by investing in an IPOGO fund. In other words, someone who invested through our platform is now selling the fund interest they purchased. Express Deals are called “express” because they can close in as little as 3 days! This is because these transactions are pre-approved by the company and therefore require no third-party involvement to close. Here’s an example to help illustrate: In 2020, Jane invests in The Awesome Company at $10 per share via a Standard Deal on the IPOGO platform. In 2022, Jane needs liquidity. With Express Deals, Jane can create a sell order for her position in The Awesome Company, list the order on IPOGO for investors to see, and get the cash she needs all within a week!

Q: Is there a share price on the day I decide to sell?

There will be a share price at the time of a liquidity event (either through acquisition or IPO). Should you seek to exit your investment early (before a liquidity event) we cannot guarantee that there will be new information to corroborate a new share price such as a new funding round. For this reason, we cannot guarantee the ability to find you a buyer to exit your investment before a liquidity event.

Q: What happens to my potential ownership if there's a secondary offering?

A company you invest in may very well raise additional financing rounds. While your percentage ownership would decrease (as a result of having more shares in the market), the value of your holdings may still increase if the company is raising at an increased valuation, but this is not guaranteed.