FAQs
1. DOES CEO OWN the SHARES OF MY COMPANY?
No, CEO will not own your company. By joining CEO you are not giving away any of your shares. We are therefore not on your CAP table, and do not have any decision making power on how you run your company.
2. WHO CAN I JOIN CEO?
Chosen shareholders of companies which meet our eligibility requirements and pass our due diligence.
Startups need to have raised £5M in capital from reputable investors, and mature companies need to have £10M in annual turnover, £2.5M in net assets and 2 years of profitability.
Startups need to have raised £5M in capital from reputable investors, and mature companies need to have £10M in annual turnover, £2.5M in net assets and 2 years of profitability.
3. IS CEO AN INSURANCE company?
No. We do not provide insurance services, and do not cover the value of your company in case of insolvency or loss of assets. We provide you the opportunity of owning collective equity of various participants with the expectation that the participants will remain in business, and therefore benefit from the success of each other when the contributed shares have an economic return.
We do understand however that companies do not last forever, and therefore assure participants that in the case of bankruptcy or insolvency, they are still entitled to their Quota.
We do understand however that companies do not last forever, and therefore assure participants that in the case of bankruptcy or insolvency, they are still entitled to their Quota.
4. HOW DOES CEO VALUE MY COMPANY?
Every company, regardless of the industry that it operates in or the location of its offices, will be valued through the same process.
If you are a start-up, we will want to know the age of the start-up, the development of its product and its last funding round.
Once your company is valued, your value remains fixed in time.
If you are a start-up, we will want to know the age of the start-up, the development of its product and its last funding round.
Once your company is valued, your value remains fixed in time.
5. HOW MUCH CAN I Join With?
The minimum you can contribute is 5%.
The maximum you can contribute is the equivalent of 20% of the shares you own at the time of entry.
This means that if you own 100 shares, the minimum that you can contribute is 5 shares, and the maximum is 20.
The maximum you can contribute is the equivalent of 20% of the shares you own at the time of entry.
This means that if you own 100 shares, the minimum that you can contribute is 5 shares, and the maximum is 20.
6. HOW DOES CEO ESTABLISH MY QUOTA?
Your Quota is the percentage of the pool you own. It is equal to the value of your company at the time of entry, the number of equivalent Shares contributed, and the total value of the pool.
For example, if your company is worth $10m and you decide to contribute 10% of the company, $1m, to a pool which is now worth £20m with your contribution, your Quota will be 1/20th or 5% of the pool.
See our Example to better understand the steps.
For example, if your company is worth $10m and you decide to contribute 10% of the company, $1m, to a pool which is now worth £20m with your contribution, your Quota will be 1/20th or 5% of the pool.
See our Example to better understand the steps.
7. WHAT HAPPENS IF A NEW MEMBER JOINs?
CEO is a limited partnership fund structure. The strength of the pool, and the value, is the sum of its partners.
8. WHEN DO I DEPOSIT MONEY?
You deposit money whenever you have an economic return pertaining to the Shares contributed to the pool. This can be from the transfer (sale) of your the Shares to third parties, dividends paid to shareholders, or any other cash flow received from being the owner of the Shares.
9. When do I receive money?
Every quarter, all the economic returns pertaining to any Shares contributed by any participant are redistributed between all the participants pro-Quota.
10. What happens if I sell the Shares of the company I own?
You will contribute to the Pool the proceeds from the transferred Shares, and then will still own your Quota of the Pool.
11. What happens if a MEMBER goes bankrupt?
See CEO's terms and conditions.
