FAQ for FOUNDERS
What are the fees associated with raising on Equity Seed?
Placement Fee: 7.5% of what you raise on Equity Seed.
What happens after I apply?
We review applications weekly. Our goal is to respond to initial applications within 7 business days if we would like to proceed with our due dilligence phase.
How long does it take to raise capital on Equity Seed?
Preliminary vetting: 7days
What if I do not meet my minimum raise target?
FAQ for INVESTORS
What is Equity Seed?
We are an investment marketplace for accredited investors to consider investmens in pre-vetted deals in start-up companies and real estate deals. We find deals, perform due-dilligence, negotiate terms, add deals to our marketplace, and advise the Special Purpose Vehicle (SPV).
What is a Special Purpose Vehicle (SPV)?
A Special Purpose Vehicle/Entity (“SPV”) is a business entity that has a special limited purpose. The SPV is created to protect assets and separate liabilities of a parent or subsidiary company. Each SPV, will share the same managing and sponsoring entity (“Equity Seed LLC.”), However, each subsidiary will be will have its own operating structure as a subsidiary of Equity Seed LLC. Ownership structure, balance sheet, and financials are independent of any other SPV with the same SPV Organizer.
What is the set-up fee associated with investment?
If you choose to participate in a deal the setup and diligence fee per deal is approximately 3.5% of investment, this covers the creation and management of the SPV, Blue Sky filing fees, a due diligence fee, and wire fees. This fee is split on a pro-rated basis among the investors who opt into the deal.
What is the minimum amount I can invest?
Minimums range from $2,000 - $15,000 per deal, dependent upon the size of the allocation. On average, the minimum is $3,500.
Do you qualify as an accredited investor?
What is carry?
“Carry” is short for carried interest which is a share of the profits. Carry for Equity Seed is 10%. Carry is paid to the lead for performing due diligence, negotiating deal terms, writing a deal memo, hosting webinars, and advising the SPV.