Linqto purchases shares in private companies using its own capital, which allows us to offer these shares to our investors via a private fund structure. We charge a purchase premium on the fund shares we offer, which covers the costs of sourcing, acquiring, and holding the shares, as well as compensating us for the upfront risk we take when purchasing the shares. This premium is reflected in the purchase price and may vary depending on market conditions and company-specific factors.
Linqto also charges a redemption fee, typically 10%, when investors sell shares through our platform. This fee helps cover the costs and risks associated with redeeming the shares from the private fund.