FAQ2021-03-23T16:18:01+00:00

FAQ

What are the risks of investing in tech start-ups?2021-10-18T21:02:29+00:00

There are substantial risks involved in investing in technology startup companies. All of the companies that Cebron Group may present to investors are development stage companies with no revenue. Valuation is arbitrary and based entirely on management’s pro forma and not based on assets, book value, revenue or income. The companies are private and shares are illiquid and cannot be liquidated. Investors must be able to bear the economic risk of a total investment loss.

What is a K-1?2021-01-15T20:21:04+00:00

As a partner in the LLC that invests in tech companies, you will receive a K-1. A K-1 is a tax form used by partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.

What is a Private Investment?2021-01-15T20:20:42+00:00

A private investment is the investment in debt or equity securities that are not listed on an exchange and are illiquid. Private investments are held for longer periods of time until a company either goes public or sold to a financial or strategic buyer. Private investments cannot be readily sold or liquidated for cash.

How to I get started as an investor?2021-10-18T21:03:16+00:00

You can get started as an investor with Cebron Group here: https://invest.cebrongroup.com/accounts/join. The entire account creation and investment process is completed online via the Cebron Group website. You will be prompted to provide or verify any required information, as well as make the necessary acknowledgments electronically.

I am an international investor living outside the United States.  Can I Invest?2021-10-18T21:03:37+00:00

Yes. An investment in Cebron Group Venture Capital Fund is available to international investors.  To invest you must be a non-US Person as defined below.

Regulation S defines a U.S. Person as:

(i) Any natural person resident in the United States (as defined below);

(ii) Any partnership or corporation organized or incorporated under the laws of the United States;

(iii) Any estate of which any executor or administrator is a US Person;

(iv) Any trust of which any trustee is a US Person;

(v) Any agency or branch of a foreign entity located in the United States;

(vi) Any non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a US Person;

(vii) Any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident of the United States; and

(viii) Any partnership or corporation if (i) organized or incorporated under the laws of any foreign jurisdiction and (ii) formed by a US Person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated, and owned, by accredited investors (as defined in Rule 501(a) of Regulation D promulgated under the Securities Act) who are not natural persons, estates or trusts.

Pursuant to Regulation S “United States” means the United States of America, its territories and possessions, any State of the United States, and the District of Columbia.

What is an accredited investor?2021-01-15T20:19:31+00:00

An accredited investor, in the context of a natural person, includes anyone who:

  • earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
  • has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence)

On the income test, the person must satisfy the thresholds for the three years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years.

In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:

  • any trust, with total assets in excess of $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a sophisticated person, or
  • any entity in which all of the equity owners are accredited investors.

In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.

Do I have to be an accredited investor to invest?2021-10-18T21:04:05+00:00

Yes. Our offerings are available to accredited and international investors only. Please register at https://invest.cebrongroup.com/accounts/join/ to view our current offerings.

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