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  • What is Tokenfolio?
    Tokenfolio's mission is to make investing in private companies as easy and accessible as investing in the public stock market. Our platform features high growth, technology driven companies who we believe will go public or be acquired within 5 years.
  • Why should I invest in private company shares?
    In today’s market, companies are staying private for much longer than they used to. Amazon went public at a $300M valuation. Today, tech companies are going public in the $10B+ range. The highest investment returns have shifted from the public markets to the private markets. As an investor, this makes it essential that you gain an earlier entry point to these companies by investing in private company shares.
  • What makes Tokenfolio different?
    Over the last decade, many platforms have been established that make entering investments smoother and more accessible by grouping investors together into one investing vehicle. However, these platforms are typically inflexible when it comes to exiting investments - in many cases your funds are locked until an IPO or acquisition. We are designed to be more investor friendly, enabling investors to sell their positions before an exit event - whether it's to lock in a gain or because you need liquidity, we understand that flexibility is important.
  • How does Tokenfolio decide what companies to offer on the platform?
    Our team of experts uses an incredible amount of information to determine the best companies to invest in and feature on the platform. While each situation is unique, generally we target the following companies: Mid-to-late stage in terms of financing (Series C or later) Growing fast Part of a large market and industry Solid financials - positive earnings or have a clear path to it Incredible leadership team Potential to exit within the next 5 years, ideally in 1-3 years
  • Where does Tokenfolio get these shares from?
    Tokenfolio purchases shares from current and former employees, early investors and advisors of the company. For individuals, they are typically selling only a portion of their holdings in order to cover costs associated with exercising and paying taxes on the remainder of their shares, for life events such as purchasing a home or preparing for a child, or to diversify their holdings. For funds, they have typically invested very early and need to return money to their own investors.
  • How does Tokenfolio make money?
    Tokenfolio charges a management fee for managing the investment over its lifetime and carried interest on exit.
  • Do I have to be an accredited investor?
    To have access to all investments on the platform, yes. We are bound by regulations that state you must be accredited or qualified to invest in private equity based on your local regulations. Most countries have regulations that require you to have sufficient net worth, income, or are considered a sophisticated investor. In the US, an accredited investor includes anyone who has any of the following: - earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year; OR - has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence); OR - holds in good standing a Series 7, 65 or 82 license.
  • Why do I have to be an accredited investor to access all investments?
    The rapid growth in private equity is sparking debates over the fairness of access to private equity opportunities. At the moment, US law only allows us to primarily serve accredited investors.
  • What's the minimum investment size?
    Historically, investing in a private pre-IPO company required you to invest at least $100,000. At Tokenfolio, we have more reasonable minimums, which vary deal by deal and are noted on each deal completion page. Reasonable minimums allow you to better diversify your holdings across a number of companies - an important aspect of achieving consistent returns in the private markets.
  • How can I get started?
    If you haven't already, start by signing up for an account. Once you have an account, you'll need to: Step 1. Verify Your Identity This is a standard practice as part of our Know Your Customer and Anti Money Laundering (KYC/AML) compliance. You'll be asked to scan your Drivers License or Passport. Step 2: Verify Accreditation Status Verify if you are an accredited investor in order to have access to all investment opportunities. Most countries have regulations that require you to have sufficient net worth, income, or are considered a sophisticated investor in order to invest in private companies. In the US, an accredited investor includes anyone who: - earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year; OR - has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence); OR - holds in good standing a Series 7, 65 or 82 license. You can verify your identity and accreditation status here.
  • Are there fees to invest?
    Generally, Tokenfolio charges a reasonable management fee which covers the lifetime of the investment and carried interest on exit (this aligns incentives to bring you the best deals, as we also benefit from profitable exits).
  • How do I verify my identity?
    Identity verification is a standard practice as part of our Know Your Customer and Anti Money Laundering (KYC/AML) compliance. Once you’ve created your account, you'll receive an email about verifying your identity by uploading either your passport (available for investors worldwide) or driver's license (available for US investors). You can verify your identity here.
  • How can I invest?
    Our Invest page provides a quick view of the companies on our platform. You can express your interest in any company. When a deal is live, we circulate the information to our investors which provides in depth information about that company including key facts from our investment team, leadership team, funding rounds and key investors, as well as the Implied Valuation based on the unit share price. Once you want to invest, click the "Invest Now" button on the deal page and you'll be taken to the completion page. You'll need to agree to the terms and enter your commitment amount, after which you'll be sent the subscription agreement for e-signing along with wire information. On the completion page you can also view the draft subscription agreement. After your wire has been received, you'll receive a confirmation. From there, deals can take between 2 to 10 weeks to close depending on the company.
  • Can I invest through an LLC, Trust, or other entity?
    Yes! You can contact our team of experienced financial professionals on with the details of your LLC, Trust, or other entity. We will set up this entity through which you can invest. This entity will sit within your same Tokenfolio profile for maximum convenience. When you are sent investment documents for e-signing, you'll have the flexibility, within the same Tokenfolio profile, to make one investment in your personal account, and the next in your other entity.
  • What am I purchasing when I invest?
    When you make an investment on Tokenfolio, you are investing via a Special Purpose Vehicle (SPV) managed by Tokenfolio and protected against creditors in the event of bankruptcy. We do this for several reasons. This structure allows only 1 investor, Tokenfolio, on the company's cap table, which is desirable to the company as they want to minimize the number of investors on their cap table for funding and regulatory reasons. There are also minimum investment amounts to acquire shares, and by grouping investors into a SPV, investors get access to opportunities that would not accept them as a lower ticket individuals investors. Depending on the vehicle opted for, you will purchase the equivalent number of shares in a SPV managed by Tokenfolio, or you will receive equity certificates that correspond to the underlying shares. In both cases, the investment is backed 1:1 by the underlying shares of the target company, with 1 SPV share or 1 equity certificate corresponding to 1 share in the underlying company. After an IPO, you will receive the underlying shares of the target company, which will be transferred to a brokerage account of your choice.
  • What is a direct and indirect investment?
    A direct investment is where the Special Purpose Vehicle (SPV) managed by Tokenfolio invests directly in the target company and the SPV is listed on the company's cap table. An indirect investment is where the SPV invests into an entity that is on the target company's cap table. For the most exclusive companies, it can be a multi-year vetting process to get direct access and requires a minimum investment of tens of millions of dollars. In these situations, access is only available via the SPV of an existing investor ("Cap Table Fund"). Tokenfolio will partner with the Cap Table Fund to get access and we will invest into their SPV. On exit, both direct and indirect investments work in the same way. After IPO, the publicly registered shares will be transferred through to Tokenfolio, and these will then be distributed to each individual investor's nominated brokerage account.
  • Is there any waiting period once I make an investment for the deal to close?
    In most cases, it can take between 2 and 10 weeks for the transaction to close. There are different approval processes for each company, some of which only process transfers once per quarter.
  • What happens to my investments if Tokenfolio goes bankrupt?
    You can rest assured that your investments will continue to exist even if Tokenfolio goes away. All of our investments exist in bankruptcy-remote vehicles. In the event of a liquidation, all Tokenfolio's investments are fully shielded from claims by any creditor.
  • What happens if a company I’m invested in goes public?
    When the underlying company exits to the public markets, Tokenfolio will reach out to obtain your brokerage account information. If you don’t have a brokerage account, you can open one (at many places for free) at a variety of online or traditional brokers. Tokenfolio will then transfer your now-public, registered shares of stock into your brokerage account, less any carried interest due. This transfer will happen after any mandated lock-up period - the company determines a time period after the IPO during which existing shareholders cannot sell, this can be from 0 days to 180 days. After the shares are transferred, they can be fully managed by you. Tokenfolio wants to provide you to the exposure of private companies - once they go public, you should have flexibility to manage your own situation as you see fit. While some of our investors like to hold a company’s stock after it goes public, many others want consistent exposure to the private markets. After the company exits, they will liquidate their position to re-invest the proceeds back into the private markets.
  • What happens if a company I’m invested in is acquired by another company?
    Every merger or acquisition is unique, so there are several possibilities that may arise depending on the details. If this happens, our team will guide you through what your options are.
  • Can I sell before a company exits?
    Tokenfolio aims to be an investor-friendly platform and we understand our investors' needs might change. We can facilitate the transfer of your interests to another investor. This can be to another investor in your network (subject to completion of identity and accreditation verification) or from our investor community. Early liquidity before an exit is subject to investor demand and market pricing at the time of exit.
  • Is there a minimum number of shares I can sell?
    The minimum sell offer amount is $10,000 or all of your shares, whichever is lower.
  • Are there fees for selling my shares?
    At present, there are no fees for selling, except for any carried interest due. In the future, there may be a transaction fee that helps cover the operating costs of the platform and the local and federal regulatory filing fees uniquely associated with private equity sales, such as Blue Sky Laws.
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