When a deal has an investment with a liquidity event (exit, dividend, acquisition, IPO, etc.), the Seed Labs team performs the following steps to ensure a smooth disbursement to investors:
We are informed of a liquidity event.
We coordinate with the investment to obtain details of the liquidity event and execute any necessary signatures.
We review the transaction documents and prepare a distribution preview for GP approval. This distribution preview includes a detailed breakdown of the distribution to each investor, including carry paid to the GP and other deal partners as applicable.
We coordinate with the company to receive the proceeds.
We perform a tax review and apply any required tax withholding.
Once approved, we process the distribution and disburse to all parties.
The full process generally takes 5 to 10 business days from receipt of funds, though timing may vary if transaction documents are delayed or the company is unresponsive.
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