When you make an investment on Sandhill Markets, you are purchasing the equivalent number of shares in a Special Purpose Vehicle (SPV) managed by Sandhill but owned by the investors and are protected against creditors in the event of bankruptcy. This SPV then purchases shares of the underlying company.
We do this for a few reasons.
A holding period determines how long shares must be held before they can be sold or transferred in compliance with securities regulations. On Sandhill Markets, investments must be held for at least 12 months before transfer.
Investors should not be purchasing securities on Sandhill Markets for resale: they are generally illiquid and speculative and carry a higher degree of risk than registered securities.
This is coming in early 2024, subject to regulatory approval. You’ll be able to sell your investment to other accredited investors on the platform.
There has to be investor demand to liquidate positions. Sandhill Markets will generally only list in-demand startups, but there is no guarantee of liquidity. You will have control over pricing, and can also adjust pricing to generate more demand.
You set the price as the seller. Buyers then determine if they want to buy at that price. You’ll be able to see other listings in the marketplace, and set your price accordingly.
There will be no charge to list your interests on the platform: we will charge a competitive percentage-based fee to sellers on a successful sale. More details on this will be announced when we’re ready to launch the marketplace next year, subject to regulatory approval.
Once the final terms are set you will have an opportunity to opt in or out of your investment, with no penalty for opting out.
In the event of an IPO or exit of the Startup, the SPV interests you hold will get paid out on the same schedule as other similarly-situated investors. Investment interests in your account will be replaced with a distribution of cash or publicly-listed shares, and you’ll receive a statement showing you the details. For IPOs where you receive shares (instead of cash), you will need to provide your brokerage account details so we can transfer your shares there.
Investments on the Sandhill Markets Platform are into LLCs that are managed by Sandhill or its affiliates but exist as separate, bankruptcy-remote entities. In the event of Sandhill shutting down, your investment would survive, and we would institute an orderly transition process to ensure that you maintain access.
You are able to invest via an entity so long as the entity passes KYC checks and meets US accreditation standards.
While a credit card is used for membership payments, for investments we are only accept wires or ACH transfers.
Yes, you can! Note that the trust must qualify as an accredited investor, either
Yes, you can invest if you are not in the United States.
Of course! Once you submit interest to any specific company we will share your unique investment link. In that link you will be able to review the subscription documents before signing and wiring.
Once you have signed, your subscription docs will remain on the Platform for you to review and download.
Yes! You’ll be able to select it as an investment option when setting up your investor profile.
Please check with your IRA provider to confirm whether private placements are available. If so, they should provide additional instructions and information you’ll use to fill out your investor profile.
What to expect with regard to taxes: