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:

• Capture the current version of the cap table and financials, including the current income statement and balance sheet
• Send a notice to the investors to consider their decision to redeem

90 days from Note maturity

• Confirm the investors’ decision to redeem
• Prepare payment options for the company to consider 

60 days from Note maturity date

• Send notice to the investors of impending maturity and confirm their decision on redemption

30 days from Note maturity date

• Update investors with status on a regular basis
• Send notice of redemption to the company and ask for payment due in one week

23 days from Note maturity date

• If payment is not received, then a payment plan will be due in one week by the company

16 days from Note maturity date if no payment plan is provided

• Set up a follow-up meeting with the company to discuss options

Upon maturity of the Note or in the event of a Corporate Transaction payment

• Create a promissory note of the debt due
• Elect a board of directors with investors having a majority control

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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On this episode of Investor Connect, Hall welcomes Mark H. Goldstein, Managing Partner at Advisors.Fund LLC.

Advisors.Fund LLC invests in hyper-focused entrepreneurs that are disrupting entrenched legacy incumbents and an accepted status quo. They love the entrepreneur that is “all in”, knows the business that he or she wants to break, and can surf and grow through a few pivots.

To date, they have made over 100 investments in the SaaS, enterprise software, AI/ML, and digital health sectors.

Mark has been involved in online services since he got his first job at Apple and was put in charge of home investing, banking, and online gaming. He enjoys the rush of being the underdog with a new project and changing people's perception of the status quo. Mark has led industry trade associations, been a member of numerous founding teams, and personally started a dozen companies, the bulk with solid outcomes. He’s been driven to solve interesting, marketing-related problems in big-known sectors (i.e. retail, investing, health care, gaming, accounting) and being a part of a smart heads-down team where everyone has dirty fingernails.

Over the last seven years, Mark is all in for digital health and transforming healthcare as a full-time investor and advisor, runs a lit' seed fund, and is a partner at a Series A venture fund.  Mark is also the Founder and Chairman of UCSF Health Hub, UCSF's innovation center that helps the country's next best healthcare inventors and companies scale and grow.

Mark shares how he helps startup and growth companies, discusses some of the challenges they face, companies who under and over-invest, and more.

You can visit Advisors.Fund LLC at www.advisors.fund, and via LinkedIn at www.linkedin.com/company/advisors-growth-formula/.  

Mark can be contacted via email at mark@advisors.fund, and via LinkedIn at www.linkedin.com/in/mgoldstein1. 
____________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.