FAQs
1. What is Collective Equity ownership ?
Collective Equity Ownership (CEO) is the provider of CEO I LP, a new type of fund that allows shareholders of late stage venture backed companies pool a portion of their shares together with other shareholders of other companies and some cash investors. In doing so we provide liquidity upfront and increased exposure to liquidity over time.
2. CAN I JOIN CEO?
Only shareholders of companies which meet our eligibility requirements and pass our internal due diligence process can join CEO.
Companies need to have raised £5M in capital from reputable institutional investors, be UK based, have a tech product and expect to average a fund return over 3 times its current value.
Companies need to have raised £5M in capital from reputable institutional investors, be UK based, have a tech product and expect to average a fund return over 3 times its current value.
3. Do I retain control of my Shares?
Yes, you only contribute the beneficial ownership on your shares to CEO I LP.
This means that voting rights, control and decision making power remains with you.
CEO does not appear on your company's CAP table, and will not disrupt your board.
This means that voting rights, control and decision making power remains with you.
CEO does not appear on your company's CAP table, and will not disrupt your board.
4. How Much can I contribute to CEO?
Depending on the type of shareholder you will be allowed to contribute more or less of your total vested shares in your company.
If you are active in the day-to-day operations of the company, your maximum contribution will be capped at 10% of the shares you own.
If you are not active in the day-to-day operations of the company, your maximum contribution will be capped at 50% of the shares you own.
The minimum contribution from total shareholders of a company is £250,000 worth of shares.
If you are active in the day-to-day operations of the company, your maximum contribution will be capped at 10% of the shares you own.
If you are not active in the day-to-day operations of the company, your maximum contribution will be capped at 50% of the shares you own.
The minimum contribution from total shareholders of a company is £250,000 worth of shares.
5. Do i have a say in who else is joining?
Yes, you will become part of our due diligence process.
If you have factual evidence to justify not accepting a company we will highlight it in our due diligence process.
If you have factual evidence to justify not accepting a company we will highlight it in our due diligence process.
6. Do I need my Board's Approval?
This depends on your company's shareholding agreement.
CEO believes in full transparency, and as such requires all transactions to be above board, and have your board and majority investors notified.
CEO believes in full transparency, and as such requires all transactions to be above board, and have your board and majority investors notified.
7. When do I receive liquidity?
CEO I LP will be owned up to 30% by cash investors. The cash from the cash investors will be distributed upfront to the shareholders contributing their shares. Further returns from the fund (ie. when one of the companies has dividends or an exit) will be distributed to all following CEO's waterfall. Here: CEO I LP
8. How dOES CEO Value my shares?
CEO values your company at its last post-money valuation following its most recent funding round, and does not create a new price point.
CEO only subtracts from the post-money valuation an amount equal to the value of the preference stack senior to the shares being contributed, if a liquidity preference is present that is triggered regardless of the value the company will be sold at.
The same valuation process is applied to all companies joining CEO I LP, with no exceptions or favoritisms.
CEO only subtracts from the post-money valuation an amount equal to the value of the preference stack senior to the shares being contributed, if a liquidity preference is present that is triggered regardless of the value the company will be sold at.
The same valuation process is applied to all companies joining CEO I LP, with no exceptions or favoritisms.
9. How do I Join?
CEO considers each application on a case by case basis.
To find out more please contact ceo@collectiveequity.com
To find out more please contact ceo@collectiveequity.com
