Following a liquidity event, the shares of the company may be subject to a lockup period, typically 90- 180 days, or longer for certain shares. This is a period of time after the company completes a public listing during which specified shares are restricted from being sold or transferred. Each exit is unique, so the Linqto Team will keep our investors as informed as possible regarding the potential outcomes, including what distribution option(s) become available, i.e., receiving stock in-kind or cash proceeds, as well as the timeline in which to expect the distribution.
When it comes to companies offered on the Linqto platform, we try to be as informed as possible when selecting opportunities to offer. Even with all of the information we gather, we can never guarantee a company will experience a liquidity event.
Every merger or acquisition is unique, so there are several possibilities that may arise depending on the details. If this happens, our team will guide you through what your options are.
You can rest assured that your investments will continue to exist even if Linqto were to be dissolved. 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.
You can sell your shares on Linqto’s platform, subject to a 90-day holding period and availability. When selling shares, Linqto charges a redemption fee of 10%, or as otherwise indicated, which helps cover the costs and risks associated with buying back the shares. The selling price may vary from the buy price due to market factors and demand on the platform.
Cash Balances are custodied in an omnibus account with JPMorgan Chase Bank, N.A. in the name of Linqto Liquidshares for the benefit of (“FBO”) customers. JPMorgan Chase is one of the largest financial services companies in the world, is ranked as the world's most systemically important bank by the G20 Financial Stability Forum, and has the highest capital requirements among the largest banks in the US.
Additionally, your Linqto account is protected by Two-Factor Authentication (2FA), which requires two sources of verification to sign in to your account: something you know (your password) and something you have (a one-time verification code). This step helps protect your account, even if someone knows or guesses your password.
