What is a Pre-IPO?
A Pre-IPO is an investment opportunity that allows investors to purchase shares in a private company before it goes public. Pre-IPOs can be a risky investment, but they also have the potential to generate significant returns. If you are considering investing in a Pre-IPO, it is important to do your research and understand the risks involved.
Pre-IPOs are typically offered to accredited investors, such as high-net-worth individuals and institutional investors.
What is an IPO?
An initial public offering (IPO) is when a private company sells shares of its stock to the public for the first time. This allows the company to raise money from a wider pool of investors and become a publicly traded company.
Going public can be a major milestone for a company, and it can offer a number of benefits. For example, an IPO can help a company raise capital to fund growth, expand its operations, or make strategic acquisitions.
What is a Seed Investment?
Seed investments are a critical source of capital for early-stage startups. They provide the funding that startups need to get off the ground and start growing. Seed investors can also provide valuable mentorship and guidance to help startups succeed.
There are many benefits to getting a seed investment. First, it can provide the capital that startups need to build their product or service, hire employees, and market their business. Seed Investments also usually occur at low valuations creating the potential to generate significant returns.
Seed Investments are often high-risk investments. This is because startups are young and unproven, and there is a risk that they may not succeed.
What is “Direct Settlement”?
Direct Settlement involves you (the investor) paying money directly to the company you are investing in either by BPAY or EFT.
Your shares are then delivered directly into your Liquidity account on the settlement date.
What is “DVP Settlement”?
Delivery Versus Payment Settlement (DVP) is a securities settlement method that guarantees the transfer of securities only happens after payment has been made. DVP stipulates that the buyer’s cash payment for securities must be made prior to or at the same time as the delivery of the security.
What are Liquidity Dollars?
Liquidity Dollars are our way of giving back to you for Investing in companies through Liquidity.
Unlike other capital raising houses, we give back a portion of the capital raising fee to you in the form of Liquidity Dollars.
Liquidity Dollars can be: redeemed for cash to offset your brokerage, be rolled in to future deals on Liquidity, or be utilised for premium products and experiences.
What is a HIN?
A HIN, or Holder Identification Number, is a unique number that is issued by the Australian Securities Exchange (ASX) to identify you as a CHESS sponsored shareholder. CHESS is the Centralised Clearing House Electronic Settlement System, which is a system that records all share ownership in Australia.
When you open a Liquidity account you obtain your own HIN to hold your stock securely, with you as the secure holder and owner.
How do I invest in a deal on Liquidity?
Once you have an active Liquidity account you will be notified when a deal that suits your investment interests is open for applications.
You can then view a dedicated company page that details the company to you and the terms of the deal.
If you want to make a bid, it’s just a few clicks away! We will then contact you with your allocation before the deal is settled either directly via DVP and your stock will be issued.
What is a 708 / Sophisticated Investor?
A 708 investor, also known as a sophisticated investor, is an individual or entity that meets certain criteria set out in the Corporations Act 2001. These criteria include having a gross income of $250,000 or more per annum in each of the previous two financial years, or net assets of at least $2.5 million.
Sophisticated investors are considered to have the knowledge and experience to make informed investment decisions without the need for full disclosure from the issuer. This means that they are not entitled to receive a prospectus or other disclosure document before investing in a security.
What is a Macquarie CMA Account?
Macquarie Cash Management Account’s (CMA) are a type of bank account designed with investors in mind. They offers a number of features that are not available with traditional bank accounts.
What is a Convertible Note?
A convertible note is a type of debt instrument that can be converted into equity at a later date. It is a popular financing option for startups and early-stage companies because it allows them to raise capital quickly and easily without having to go through the lengthy and expensive process of issuing traditional equity.