FAQs
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Active founders and shareholders can contribute a maximum of 15% of their equity. Non-active founders & shareholders have no cap on their contribution.
The average contribution per company is £4m, which can comprise of multiple shareholders. -
A thesis is agreed with a lender who lends against the portfolio aggregated. We distribute the loan upfront to all the founders on the day that they join the fund. The first exits will go to repay the loan. Once the principal + interest is repaid, the exit proceeds are distributed pro rata to the founders.
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You will receive 15% of the value of your equity contribution in cash back net of fees on the day that you join the fund. The remaining 85% of your position goes to hold your position in a portfolio of high-growth series B+ companies.
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In order to join the fund, a shareholder must have investor majority consent. We already have the backing and support from most VCs in the UK, including Atomico, Index, LocalGlobe & many more.
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A founder will only contribute the beneficial ownership on a number of their shares. Therefore, Collective Equity will not disrupt the cap-table and all voting power will remain with the founder.
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Collective Equity will have information rights on each company, but will not ask founders to create anything more than their usual quarterly investor updates.
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Collective Equity takes the company's post-money valuation from its last funding round, or from the last liquidity transaction. This will determine their quota in the fund.