When you make an investment on Linqto, you are purchasing the equivalent number of shares in a Special Purpose Vehicle managed by Linqto but owned by the investors and are protected against creditors in the event of bankruptcy.
We do this for several reasons. First, when private equity is sold, the company has the right to refuse that sale. By selling representation of shares that Linqto owns, we can guarantee an immediate sale to investors without the company having the right to refuse that sale. Secondly, this structure allows only 1 investor, Linqto, on the company’s cap table, which is desirable to the company as they want to minimize the number of investors on their cap table for funding and regulatory reasons.
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