After the Investment
What is the exit strategy? After the investment you have two exit strategies: 1. Wait for the company's Public Listing. When a company goes public and after the lock-up period ends, according to offering details, the fund sell shares on the public market and distribute returns among all GELT holders. You will receive a stable coin payment equal to the number of GELT multiplied by the new share price. ā 2. Sell your GELT on TEX to other traders. Why diversification? The golden rule of investing is to have a well-diversified portfolio in order to minimize risks. Fractional shares help you easily create a diverse portfolio using an amount of capital that you are comfortable with.The best practice is to diversify investments based on stage, industry, and geographical location. What is a public listing? Public listing is a process when a private company decides to list its shares on a stock exchange like NYSE, NASDAQ, and others. The most popular way to do so is Initial Public Offering (IPO), however, some companies choose alternative options such as SPAC or Direct listing. For venture investors, a public listing is one way to exit the investment. In the case of an IPO, companies put a lock-up period, after which investors can sell their stake and receive a return.When a company listed on TEX goes public, GELT holders will have to wait for the end of the lock-up period to receive a profit. What is a lock-up period? An initial public offering (IPO) lock-up period is a contract provision preventing insiders who already have shares from selling them for a certain amount of time after the IPO. Although the waiting period varies on a case-by-case basis, it typically ranges from 90 to 180 days.Lock-up periods generally apply to insiders, such as a company's founders, owners, managers, and employees. However, it also applies to venture capitalists and other early private investors.
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