Your company's bylaws and shareholder agreements may provide for or restrict your company's ability to control transactions, including for transaction amount. V2 Markets complies with your company's bylaws and agreements.
Company Controls
Why should I offer my employees liquidity solutions?
Offering or approving liquidity solutions for your employees allows them to meet financial goals, capture part of their value creation for your company, and take advantage of their incentives without relying on the company to create liquidity events. V2 Markets establishes relationships with each client to understand their unique needs. We will work with your company to ensure compliance with your company's bylaws and agreements across secondary transactions.
Company Controls
Can I control when they can sell?
Your company's bylaws and shareholder agreements may provide for or restrict your company's ability to control transactions, including transaction timings. V2 Markets complies with your company's bylaws and agreements.
Company Controls
How does this affect our Cap Table?
V2 Markets works with clients to accommodate a variety of transaction structures, which may have differing impacts on your company's cap table. Our typical transaction is structured as a direct transfer, which in most cases has the result of replacing or introducing one cap table member.
Company Controls
Can I control who can sell?
Your company's bylaws and shareholder agreements may provide for or restrict your company's ability to control transactions, including who may transact. V2 Markets complies with your company's bylaws and agreements.
Our Platform
Who are the sellers on your platform?
Sellers may include any shareholders of venture-backed companies, including early investors, current or former employees, and other cap table members.
Our Platform
Who are the investors on your platform?
Investors are verified, accredited, and, in some cases, under MNDA with V2 Markets. Investors may include professional angel investors, high net worth individuals, institutional investors, and others. In select cases, we may act as the investor in a transaction through our proprietary vehicles. Through V2 Markets, your company may be introduced to strategic investors and partners.
Our Platform
How are transactions marketed?
Transactions may be listed on-platform through our app or handled off-platform directly with clients.
Our Platform
How is V2 Markets compensated for facilitating transactions?
V2 Markets typically charges sellers a fee up to 5% when the transaction closes. Fees may be reduced for larger sales. Please contact a market specialist for more information on transaction structures and fees.
Security & Compliance
What voting or information rights are transferred to a new investor?
Voting and information rights are dependent on your company's share class structure and bylaws. The transactions we facilitate will reflect the transfer of voting or information rights as required by your company.
Security & Compliance
What does V2 Markets do to ensure its transactions comply with securities laws?
V2 Markets ensures all transactions comply with relevant securities laws and regulations, with legal and compliance teams ensuring requirements are met.
Security & Compliance
What company information do investors receive?
Given the nature of private investments, investors should expect to receive limited information. Any financial information provided to us by your company is only shared upon the consent of your company. Other information may include information sourced from publicly-available sources.
Security & Compliance
What are V2 Markets’s regulatory approvals?
V2 Markets Market Specialists are registered agents of RainMaker Securities, LLC. Member FINRA / SIPC. Find information about Rainmaker Securities and its agents on BrokerCheck.
Security & Compliance
What does V2 Markets do to maintain the confidentiality of company financials and transaction information?
V2 Markets asks that all interested clients sign an MNDA prior to any details being discussed or shared on transactions. Any financial information provided to us by your company is only shared upon the consent of your company.
Investors Looking to Invest
Getting Started
Who is an accredited investor?
As defined by the SEC, an accredited investor is an individual who meets one of the following criteria: annual income that exceeds $200,000 or joint income (with spouse or partner) that exceeds $300,000 in each of the two most recent years along with a reasonable expectation that there will be the same level of income in the current year; net worth of $1,000,000 in assets, not including a primary residence; OR investment professionals in good standing with an active Series 7, Series 65, or Series 82 license.
Getting Started
Why should I use V2 Markets?
V2 Markets partners with sophisticated investors seeking access to private companies. We work with clients to accommodate a variety of transaction structures, allowing investors to access investments in companies through terms that meet their requirements. These transaction structures may include direct transfers, V2 Markets SPVs, third-party SPVs, forward contracts, or other structures.
Getting Started
Do I need to be an accredited investor to sign up on the V2 Markets app?
No, you do not need to be an accredited investor to complete the sign-up process on the V2 Markets app. However, only approved accredited investors may access our orderbook and data.
Getting Started
How do I transact on V2 Markets?
To get started on the V2 Markets platform, sign up as an investor through our app or contact a market specialist for more information. Investors may place buy indications directly to our orderbook through our app or speak with a market specialist to place off-platform orders. V2 Markets will work directly with you to complete your transaction.
Getting Started
I just joined and I don't see any companies to transact in. Why is this?
Only approved accredited investors may access our orderbook and data. A market specialist will connect with you to verify your status and enable your access once verification is completed.
Getting Started
Who can transact with V2 Markets?
V2 Markets transactions are only available to accredited investors. Accredited investors may sign up as an investor through our platform or contact a market specialist for more information.
Getting Started
Can I transact via V2 Markets if I don't live in the United States?
Yes, V2 Markets works with investors across the globe that are permitted to invest in alternatives by the rules and regulations of their own countries.
Getting Started
What type of companies could I transact in?
Companies on the V2 Markets platform are typically venture-backed, high-growth startups or growth-stage companies with valuations approaching or above $500 million. V2 Markets will work with buyers and sellers for a wide range of companies, including companies that may not be on our platform yet.
Post-Transaction
What documents do I receive in a transaction?
Each transaction is unique and may require additional documentation. For direct transfers, you will generally receive: a stock transfer notice, stock transfer agreement, engagement agreement, and an invoice for any fee due to V2 Markets.
Post-Transaction
What is a liquidity event?
A liquidity event generally includes any external transaction with the company that allows shareholders to realize some or all of the value of their shares, including through an Initial Public Offering (IPO) or acquisition by another company. Investors in private companies should be aware that they may not be able to realize a return on their investment prior to a liquidity event.
Post-Transaction
What happens if the company goes out of business?
Investors in public companies should be aware that investing comes with significant risks, including the risk that the company goes out of business or otherwise fails to produce a return on investment. If a company were to go out of business, the investor may recover some portion of their investment through a liquidation process, though this is highly dependent on the company's specific situation.
Post-Transaction
Will I own shares outright?
V2 Markets works with clients to accommodate a variety of transaction structures. The terms of your transaction will dictate the transfer of ownership. In transactions structured as a direct transfer, you will receive shares outright.
The Transaction Process
How are share prices determined?
As part of the transaction process, V2 Markets will work with buyers and sellers to facilitate price discovery. Prices may be influenced in part by recent transactions or funding rounds, current valuation expectations, overall supply and demand trends, company approval requirements, and other factors.
The Transaction Process
Can I invest through my retirement account?
Some self-directed IRAs may be eligible to invest in private securities, though this is dependent on the custodian of the account and subject to exclusions on prohibited transactions asserted by the IRS. Contact the custodian of your self-directed IRA for more information on eligibility and exclusions.
The Transaction Process
Who am I buying shares from?
Sellers may include any shareholders of venture-backed companies, including early investors, current or former employees, and other cap table members.
The Transaction Process
When do I need to send funds for my transaction?
Once the transaction is approved by the company, our team will circulate closing documents, have counterparties exchange relevant wiring instructions, and arrange the closing date for funds to be sent to settle the transaction.
The Transaction Process
What are the risks of investing in private securities?
Investing in private securities comes with heightened risks including, but not limited to, the following: lack of liquidity in trading private securities; immature or lack of formalized corporate governance for companies; reliance on future funding ability to continue company operations; limited regulation and oversight of private companies by regulators such as the SEC; and other risks or considerations for each company or industry.
The Transaction Process
Why should I submit interest in a company?
Submitting interest in companies helps us gauge how much demand there is for transactions and helps us appropriately match sellers to interested buyers. Additionally, your submitted interest enables V2 Markets to update you on relevant company activity.
The Transaction Process
Are there transaction fees?
V2 Markets typically charges sellers a fee up to 5% when the transaction closes. Fees may be reduced for larger sales. Please contact a market specialist for more information on transaction structures and fees.
The Transaction Process
Can you provide details on a company’s financials?
Given the nature of private investments, investors should expect to receive limited information. Any financial information provided to us by a company is only shared upon the consent of the company. However, we may provide our own research or other information available to us from publicly-available sources.
The Transaction Process
What is the minimum transaction size?
Our transaction minimum for institutional investors is generally $100,000. For individual investors, investment minimums for V2 Markets SPVs may be as low as $10,000, though this is dependent on the particular vehicle. Limits can vary depending on the specific transaction, company, and transaction structure. Please contact a market specialist for more information.
The Transaction Process
How are the transactions structured?
V2 Markets works with clients to accommodate a variety of transaction structures, allowing investors to access investments in companies through terms that meet their requirements. Our typical transaction is structured as a direct transfer, resulting in the transfer of shares. V2 Markets may also offer proprietary SPVs through our V2 Markets Ventures arm.
Shareholders Exploring a Sale
Getting Started
Can I sell unvested shares?
V2 Markets works with shareholders to accommodate a variety of transaction structures. However, given the nature of unvested shares, a transaction is unlikely to be completed. Please speak with a market specialist for more information.
Getting Started
What if I can't find my company?
Our market specialists are happy to update our company list with your company, or market the transaction off-platform depending on your needs. For on-platform orders through our app, please fill out the sell indication form by selecting the blank option for Company and enter your company in the field titled "Don't see your company? (Please provide name)".
Getting Started
What if I own multiple classes of stock?
V2 Markets can facilitate the sale of multiple classes of stock together or as separate transactions, depending on the needs of the shareholder. For on-platform orders through our app, please fill out the sell indication form with one class while making note of the additional classes through the "Additional Comments" field.
Getting Started
Can I sell my options?
V2 Markets works with shareholders to accommodate a variety of transaction structures, including for shareholders with stock options. Please speak with a market specialist for more information on transaction structures and details on your options.
Getting Started
How do I sell my shares with V2 Markets?
To get started on the V2 Markets platform, sign up through our app or contact a market specialist for more information. Shareholders may place sell indications directly to our orderbook through our app or speak with a market specialist to place off-platform orders. V2 Markets will work directly with you to complete your transaction.
Getting Started
Can I sell shares of a company not based in the United States?
Yes, V2 Markets works with shareholders of companies domiciled across the globe while meeting the requirements of their particular companies and countries. Ask a market specialist about the specific country or region your company is located in today.
Getting Started
Who can sell with V2 Markets?
Sellers may include any shareholders of venture-backed companies, including early investors, current or former employees, and other cap table members.
Getting Started
Can I sell my shares via V2 Markets if I don't live in the United States?
Yes, V2 Markets works with shareholders across the globe to facilitate transactions that meet their needs while complying with relevant laws and regulations.
The Transaction Process
What documents are needed to complete a sale?
While each transaction is unique and may require different documentation, the following are generally required: stock transfer notice, stock transfer agreement, and proof of receipt of funds. In some cases, a letter of opinion may be required by the company.
The Transaction Process
How are my shares valued?
As part of the transaction process, V2 Markets will work with buyers and sellers to facilitate price discovery. Prices may be influenced in part by recent transactions or funding rounds, current valuation expectations, overall supply and demand trends, company approval requirements, and other factors.
The Transaction Process
Are there transaction fees?
V2 Markets typically charges sellers a fee up to 5% when the transaction closes. Fees may be reduced for larger sales. Please contact a market specialist for more information on transaction structures and fees.
The Transaction Process
How do investors decide to work with me?
V2 Markets facilitates the matching process by marketing your shares to our global network of investors. Once we find the right counterparty for your transaction, we will work with you and the investor(s), and the company to complete the transaction.
The Transaction Process
What is the minimum transaction size?
Our transaction minimum is generally $100,000 for direct transfers. However, limits can vary depending on the specific transaction, company, and transaction structure. Please contact a market specialist for more information.
The Transaction Process
How secure is my personal information and identity at V2 Markets?
V2 Markets asks that all clients sign an MNDA prior to any details being discussed or shared on transactions. Any personal and/or identifying information is only disclosed with your express consent. V2 Markets ensures that all transaction and personal data are used or stored in compliance with all relevant laws and regulations.
The Transaction Process
What does the process look like if the company has a ROFR?
Once a transaction has matched and a prospective buyer has delivered a binding document stating their desired number of shares to purchase and price per share, the company is formally notified of the transaction. A right of first refusal (ROFR) gives the company an option to assume the buyer's position or delegate said position in the transaction to a chosen shareholder. Should the company exercise their ROFR, the seller would still receive funds and the company or selected investor becomes the buyer of the shares. Should the company decline to exercise their ROFR, the initial buyer and transaction may proceed.
The Transaction Process
Do I need board level approval to sell my shares with V2 Markets?
Your company's bylaws and shareholder agreements may provide for or restrict your company's ability to control transactions and may require board-level approval for a transaction of company shares. In some cases, a company may be able to exercise a right of first refusal (ROFR) or otherwise dictate whether a transaction may commence.
The Transaction Process
Can I request a sale for only a portion of my shares?
Yes, subject to transaction size minimums. V2 Markets will work with you to help you determine the best transaction structure and size to meet your needs.
The Transaction Process
What documents do I need to provide to start a sale?
V2 Markets typically collects the following in order to initiate a stock sale: identification, proof of shares, shareholder agreement, award agreements, and a copy of the company's bylaws.
The Transaction Process
Why do I need to provide my SSN?
A social security number is generally used to confirm identity and satisfy KYC/AML requirements. KYC/AML stands for Know Your Customer and Anti-Money Laundering, a series of regulations governing financial institutions. Know Your Customer guidelines require financial institutions to make a reasonable effort to verify the identification of their clients. Anti-Money Laundering regulations require that finacial institutions make a reasonable effort to ensure that their clients are not affiliated with criminal associations or have a history of financial crimes or fraud.
The Transaction Process
What is an 83(b) election?
An 83(b) election may be relevant to shareholders who are electing to exercise their options at the time that they receive their grant, rather than at the time that the equity vests. An 83(b) election is sent to the IRS to notify them that the shareholder is choosing to accept taxation at the time of the 83(b) election. Please speak with a professional tax adviser for more information.
The Transaction Process
How long does it take to complete my sale?
The time to complete a transaction may differ depending on the transaction structure, market conditions, company expectations, and other factors. While V2 Markets can't provide a specific time to complete a transaction, we work as quickly and diligently as possible to meet your needs and expectations.
The Transaction Process
How is my sale treated for tax purposes?
V2 Markets does not provide tax advice and clients are encouraged to seek their own professional tax advice. Some tax implications include, but are not limited to, capital gains tax, 83(b) elections, and ordinary income tax.
The Transaction Process
Can I work with V2 Markets again in the future when more of my shares or options vest?
Absolutely! We understand needs and goals can change over time, and V2 Markets can work with you to sell further shares or options as your goals evolve.
General FAQs About V2 Markets
Privacy & Security
How will my information be used and stored by V2 Markets?
V2 Markets asks that all clients sign an MNDA prior to any details being discussed or shared on transactions. Any personal and/or identifying information is only disclosed with your express consent. V2 Markets ensures that all transaction and personal data are used or stored in compliance with all relevant laws and regulations.
Registration
How do I sign up?
Signing up is simple and free of charge. Navigate to https://app.v2markets.com/register/user-profile, click on “Sign Up”, and get started by registering.
Registration
When should I sign up?
Prospective clients can sign up at any time, whether they have active interest in completing a transaction or are just exploring options for a sale or investing. A market specialist can work with you to understand the timing of your goals.
Registration
How can I contact V2 Markets?
V2 Markets can be contacted through phone at (910)-398-2671, through email at jake@v2markets.com, through the Contact Us form at the bottom of any page of our website, or through the Contact tab of our app.
Registration
How do I reset my password?
To reset your password, please head over to https://app.v2markets.com/forgot-password. Fill in your email address and click on "Reset Via Email" to receive a reset link.
Who We Are
What is V2 Markets?
V2 Markets is the modern venture marketplace: our platform facilitates secondary transactions of high-growth, VC-backed startups. Our platform is used by shareholders and prospective investors who are considering the sale or acquisition of shares in these companies.
Who We Are
How does V2 Markets work?
V2 Markets facilitates transactions through our app or off-platform on an individual basis. Platform users may post non-binding indications of interest to the platform which will be shown to other platform users who may wish to participate as a counterparty. Clients may also contact a market specialist to place an off-platform indication. V2 Markets serves as an intermediary to help match these transactions between buyers and sellers.
Who We Are
Is V2 Markets a crowdfunding platform?
No, V2 Markets doesn't currently facilitate capital raising for companies. Instead, we help shareholders that are seeking liquidity or investors looking to invest in venture-backed companies.
Who We Are
Why should I use V2 Markets?
V2 Markets works closely with clients to achieve their transaction goals, whether investing in a company or selling an existing holding. We work quickly and efficiently to facilitate transaction terms and pricing that meets the needs of our clients.
Who We Are
Whom has V2 Markets helped so far?
V2 Markets works with startup employees, former employees, angel investors and other shareholders on the sell-side. Our investor base is composed of high-net-worth individuals, family offices, funds and other institutional investors. Our platform features hundreds of leading startups across various industries and continents, including fintech, artificial intelligence & machine learning, edtech, healthtech, cleantech, and more.
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