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There are many reasons to invest in private equity. First and foremost, the private markets have far outperformed the public markets. Over the past 25 years, the average internal rate of return (IRR) for the top quartile of VC funds has ranged around 25% according to the Cambridge Associates Venture Capital Index. Over the same period, the S&P 500 returned around 10% per year. On a fundamental level, these investments are generally riskier and therefore demand higher returns on investment.
In today’s market, companies are staying private for much longer than they used to. The median age for tech companies going public in 2000 was 4-5 years compared with 12 years in 2018. The returns generated by these companies during their growth phase are only achievable by accessing the private share market. As an investor, this makes it essential that you gain an earlier entry point to these companies by investing in private company shares.
To have access to all investments on the platform, yes. As a US based company we are bound by regulations that state you must be accredited or qualified to invest in private equity based on your local regulations. Under Regulation D Rule 506(b), investment opportunities are limited for US non-accredited investors, while accredited investors can access all investments on our platform. Most countries have regulations that require you to have sufficient net worth, income, or are considered a sophisticated investor.
In the US, an accredited investor includes anyone who:
-earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year, OR
-has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR
-holds in good standing a Series 7, 65 or 82 license.
Not in the US? Click here to contact our team to learn about your countries requirements.
Our Invest page provides a quick view of the companies on our platform, along with a brief description and what industry they're in. When you view an individual company, we provide in depth information about that company including key facts from our investment team, leadership team, funding rounds and key investors, as well as the Implied Valuation based on the unit share price.
Once you know which company you want to invest in, use the slider to select the size of your investment. After you click the Place Order button, you'll be asked to choose your payment method, which can be a linked Uphold account or your Linqto cash balance*. Lastly, you'll be presented with a review page where you can review your investment and associated agreements and place the order.
*Some accounts may be subject to our legacy Wire Transfer process. When you go to place an order and choose Wire Transfer as the payment method, instructions will be provided once you place your order and we will confirm with you upon receipt of your funds. Funds must be received within 5 business days of the order being placed, after which the order will be cancelled.
You can rest assured that your investments will continue to exist even if Linqto goes away. All of our investments exist in bankruptcy-remote vehicles. In the event of a liquidation, all Linqto’s investments are fully shielded from claims by any creditor.
Yes! Click here to contact our team of experienced financial professionals with the details of your retirement account. We will create a separate entity through which you can invest via your retirement vehicle. This entity will sit within your same Linqto profile for maximum convenience. When it is time to invest, you’ll choose to invest through your personal account or your retirement account. You’ll have the flexibility, within the same Linqto profile, to make one investment in your personal account, and the next in your retirement vehicle.
Yes! Click here to contact our team of experienced financial professionals with the details of your LLC, Trust, or other entity. We will set up this entity through which you can invest. This entity will sit within your same Linqto profile for maximum convenience, and has its own cash account that you can add funds via a wire transfer or linked bank account. When it is time to invest, you’ll be presented with a dropdown menu where you can choose to invest through your personal account or your other entity. You’ll have the flexibility, within the same Linqto profile, to make one investment in your personal account, and the next in your other entity.
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