Frequently Asked Questions
What is the Global Investor Community?
Linqto's Global Investor Community provides our members with a unique opportunity to learn about the latest trends in tech and investing. It provides insights into the world of private investing through interviews and panel discussions among thought leaders and industry experts across a wide spectrum of industries.
With our products,; Linqto Learn, Linqto Liquidity and the Global Investor Conference, our community has access to thought leaders to stay ahead of the curve, access to buy and sell shares and access to a network of people with shared interests. In each event we bring together groups of brilliant entrepreneurs and accomplished investors to share their experience and vision on current trends in their industry sector.
What is the Global Investor Conference, or as we like to refer to it, “the GIC”?
We created the GIC to help identify the most outstanding and progressive entrepreneurs building world changing companies and the renown investors who invest in them. It’s an opportunity to learn from and connect with the brightest minds both building and investing in tomorrow’s technology.
What is Linqto Learn?
Linqto Learn is a bi-monthly educational event where we deep dive deep into certain topics that need further investigating, be it investments in space, FinTech or the NFTs in the Metaverse. We pick exceptional individuals who are experts in their field to sit down and dissect their thoughts, and discuss their journey and share the vision of the future they hold. These events are geared towards our community of accredited investors who need to stay ahead of the curve when it comes to learning about new technology and trends.
What is Linqto?
Linqto is a technology-enabled investment platform allowing accredited investors to identify, evaluate, and invest in, and make liquid investments in some of the world's leading unicorns and private, high-growth, VC-backed companies. It is also a platform where employees and investors can sell their shares in same companies.
How do I get started?
If you want to get the latest insights on upcoming trends, listen to industry experts, and network with other successful investors, signup to join our list to get constant updates on future events, early access to webinar recordings & helpful resources on trend reports.
How do I sell my shares?
We purchase shares directly and quickly from employees or investors in high-growth, VC-backed startups valued at more than $300M, which are on our approved list. There is no fee to trade with Linqto (brokers usually take 3-5%). Linqto is a principal and can give you a very quick answer (No "there's a buyer around the corner")
What if I have options that I have to exercise before I can sell my shares?
If needed, Linqto helps with the exercising of options free of charge. There are no high interest loans or future claims on other shares. Linqto buys the shares - and takes the cost of the exercise out of the transaction - no one else is doing this
Is it common for shareholders to sell before an exit?
Private share sales before an exit are now a regular occurrence. Whether sellers are seeking risk management of their finances, funding life events like a home purchase or medical expense, or diversifying their investments, all shareholders have a right to liquidity. When it comes time to reap the rewards of your hard work, you'll find Linqto to be a terrific partner.
How long does it take to complete the selling process and receive my funds?
Linqto is able to navigate the deal approval process with speed and expertise. The timeline from start to end of the process is typically 2-5 weeks, with most of that time taken up by the issuing company. Issuing companies usually have 30 days to review and approve deals, and approval can come any time in that window. Once approved, Linqto is able to immediately wire funds to your bank account.
Working with traditional brokers can take months to complete a deal while the broker searches for a buyer. The majority of the time, that buyer never materializes. At Linqto we immediately give you a straightforward yes or no answer about our ability to buy. This is why sellers prefer checking with Linqto before going into the broader marketplace with their offer.
Why does Linqto want to buy my shares?
Linqto operates an investment platform for accredited investors worldwide. Private company shares have historically been one of the best performing asset classes; however, this market has been inaccessible to ordinary, individual accredited investors and small institutions. A
variety of factors led to this market only being available to ultra-high net worth individuals and large institutions. Linqto is changing that by allowing ordinary investors a simplified way to access this market.
In order to allow ordinary investors into the private share market, Linqto works with shareholders like you to purchase private company shares, using our own funds, and package these shares into investment vehicles. Our investors can then simply view our available investments, read our research and analysis, and make an allocation immediately.
Who does Linqto typically buy shares from?
Employees (current and former), investors, institutions, contractors- anyone who holds shares or options in a company is a deal partner for Linqto.
What is the minimum size to transact?
If Linqto has invested in your company prior to our deal, this means we already sit on that company's cap table. We have already produced research and analysis for our investors, and deals will finish quickly. For this reason, we can support sales of as little as $50k in these companies. For companies where Linqto has not yet invested, the minimum deal size is $250k.
Why should I work with Linqto on my share sale?
Linqto is fundamentally different from other firms in the market. Here are three reasons why:
- No Fees
o Unlike brokers, Linqto does not charge share sellers any fees whatsoever. No commission, no brokerage fee, no administrative fees- nothing.
o When you transact with Linqto, the only economic consideration is the price of the transaction.
o Not only is this cheaper for you, but it allows you to streamline and simplify your share sale analysis and planning.
- Free Option Exercise
o Let's say you hold options in a company Linqto wants to invest in. Linqto will pay the cost to exercise those options, for free, and buy the shares from you immediately.
o Many firms in the market will charge you a hefty financing cost to exercise your options. Other firms will exercise your options, but only if you agree to gift them a large percentage of your share holdings. Not Linqto- we exercise your options free of charge.
o See below for an example transaction*
- Simplify the Process
o Linqto is not a broker- we are a principal and we buy all shares directly from the sellers we work with. We invest in every name in our portfolio using capital from our own balance sheet. Other firms in the market are brokers- when you engage them, they try to keep you on the hook while they search for a buyer. The majority of the time a buyer never comes. Sellers end up wasting their time, or worse, they have the adjust their financial plans after their shares don't sell.
o We have extensive experience navigating the deal process. Linqto has successfully worked with 48 of the world's leading private companies to help our investors make investments totaling $150M+. Our team has decades of experience in venture capital, investment banking, and trading. We know how to work with management teams and Boards of Directors to facilitate successful deals in a timely fashion.
o Linqto’s mission is to democratize the private share market. We work with both large and small shareholders, and we are dedicated to providing each seller with a terrific experience. Every seller will work directly with our team to make sure the seller understands the transaction, the timeline, and the full process.
*Here's a quick option exercise example:
- Let's say you own just one stock option, where the underlying stock has a market price of $5 and the option has a strike price of $2. Your option is "in the money" to the tune of $3- this is your unrealized profit on your option.
- For many option holders, coming up with the capital needed to exercise their options can be challenging, as the total amount needed typically stretches into the six or seven figures.
- At Linqto, we can help. We would use our own capital to exercise the option for you- in this case, we would send the $2 to the company using our own capital up front. This triggers the option exercise and now you would own your $5 share outright.
- To wrap things up, Linqto would buy that share from you for the market price of $5. When sending funds to you, the seller, we would subtract the $2 exercise cost from the total amount. This allows us to recoup the capital we allowed you to use, free of charge, to help you exercise your option. This leaves you, the seller, with your $3 profit. Instead of that being a paper profit, now you've realized the profit and you have those funds to use at your discretion.