 Q&A| Below are some of the questions most frequently asked after initial exposure to the Juneau concept. If you don’t find an answer to your question here, please write to us, and we will answer as soon as we can. |
I am entitled to cash some of my common shares in my startup?Answer:
Yes. After a short due diligence process, Juneau will purchase in cash a number of shares and an option to buy some more in a year later, in cash as well. I'm interested in the shares swap model, but I’m not clear about exactly how much I can exchange?Answer:
As a founder who is currently employed in your company, you can exchange up to 15% of your own holdings. Let’s say that you own 10% of the shares - you can use the model to trade 1.5% of the company. Do you have to be an entrepreneur or an angel investor to participate in these options?Answer:
No, the Juneau model can be used by every equity holder in privately-held companies. The seller’s position and title will determine how much he/she can exchange, as explained in the previous question. How does Juneau choose the companies in its basket? Answer:
Juneau’s two main criteria for adding a company to its basket: First, a VC round must have taken place in the past 18 months. Second, the company must have enough cash to sustain itself for at least 12 months. The final approval for a company to enter the portfolio is given by Juneau’s investment committee, according to additional and diverse criteria. Is there any chance that exchanging shares (in the shares swap deal) might result in a tax event? Answer:
No, Juneau has special approval from the Israeli Tax Authorities, which states that the share swap is not a tax event. Does Juneau have a lockup which will prevent me from selling the shares I get? Answer:
No, Juneau doesn’t prevent anyone from selling shares, anytime. |
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