Mon, 20 December 2021
Redemption Facilitation Process
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
In an early-exit term sheet, it’s important to have a redemption facilitation process.
This includes the steps for setting up the bank accounts, capturing the investor’s interest, providing payouts, and investor updates.
The process also tracks escrow of repayment funds and later revenue share payments to complete the redemption process.
For the redemption exercise, here is the timeline and steps:
180 days from Note maturity:
90 days from Note maturity
60 days from Note maturity date
30 days from Note maturity date
23 days from Note maturity date
16 days from Note maturity date if no payment plan is provided
Upon maturity of the Note or in the event of a Corporate Transaction payment
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Direct download: Redemption_facilitation_process.mp3
Category:general -- posted at: 6:00am CDT