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Mo City
Active Member
Can you summarize what is required by Forge Global besides being an accredited investor? All of the opportunities I investigated a while back were the equivalent of extortion schemes that allowed the facilitator to keep their hand in your pocket indefinitely.Welcome to Forge - A More Accessible Private Market
Accelerate your future with Forge's private market solutions. Get access to pre-IPO investment opportunities and liquidity for your private company shares.
All I want to do is buy a large chunk of shares while paying fees and a (presumably large) premium. Does Forge Global offer that?
Hey, Mo, Sorry for delay was too busy crying over my Solars.
What you describe for a chunk of shares is the process I am familiar with.
However, I have since been told that SpaceX demand is so high that the deals being offered now included something like a 30% capital gain tax. I can understand that such an arrangement would be always unacceptable. At least it would be for me.
All I can tell you is give it a shot. And expect to pay a large premium, probably over five percent. But if they ask for a piece of future profits, it is hard to go forward.
Sorry I cannot give more clarity, but the private industry is very company specific. And in SpaceX case, even that is a moving target.
Mo City
Active Member
Thanks for the reply. You are correct that agreeing to give up a large portion of future capital gains is totally unacceptable. This is what I consider extortion, almost criminal.
On the other hand, I would be willing to pay much more than a 5% premium. The main thing is the facilitator must be out of my wallet after the transaction.
Good luck with that. Demand for SpaceX shares is too high.
I don't like it either of course but consider it this way. You have 500 million dollars to invest and you put it in SpaceX. Then instead of just holding the entire amount you create a fund and take say 20% of their gains. You are greatly reducing your possible upside in return for a guaranteed %. It's not all that different than selling covered calls from a moral standpoint. They make their money by taking a cut, that's all.
Mo City
Active Member
I understand the motivations of the broker but those terms just don't work for this buyer. If demand allows them to get away with this, so be it. Maybe I'm better off staying 99% TSLA and this prevents me from making a mistake.
Again, I would pay a much higher fee than 5% (like 15%) to actually own the shares outright and not be under anyone's thumb.
dk10438
Member
yeah but you won't get access to the shares unless you're willing to pay. 20% of the future profits is steep but you gotta pay to play. Sharespost doesn't charge this type of fee from what I recall but typically you need to be willing to invest 200k min.
Sharepost collects their middleman fee, but the retained earnings is up to the fund in question. My experience has been pretty much what you described.
Is anyone familiar with Glassboard portal? I have some company (Principal Pre-IPO group) that claims to have access to private equity shares in companies including specifically SpaceX. They claim they are out of inventory right now but can make indication of interest on Glassboard.
I am very hesitant and start with a 90% chance the whole thing is a crock, but I believe there is a chance it is legitimate. Thoughts?
I am very hesitant and start with a 90% chance the whole thing is a crock, but I believe there is a chance it is legitimate. Thoughts?
Glassboard is just a platform for private equity transactions like TMC is a forum.... you'd have to do your own DD on the group/fund itself.
Be aware that chances are very high that any investment in SpaceX these days is going to be via a SPV vehicle. Very rare to get actual SpaceX shares. Each SPV has their own fees.
My DD on Principle Pre-IPO Group was AVOID.
I forget the specifics, but did some googling and “another company” at the same address had been fined for selling (non Spacex) pre ipo shares that they didn’t have.
Don’t quote me, but it was something like that. Enough to send me the other direction. Plus, was a little suspect that they had Spacex shares and people weren’t begging for them.
Hey everyone! I also got an email from Sharespost on the opportunity. I got a couple of questions - maybe someone who did it for 5 times already would help clarifying (no need to explain that every SPV terms can be unique and it is not a substitute for legal advice):
1) What are your thoughts on how a potential Starlink IPO might play out for SPVs? Like will SPV be assigned Starlink shares and when you exit you get them?
2) What is real liquidity on those SPVs? I understand that you need to be prepared for the investment to be almost completely illiquid, but in practice - could you exit for example in 1 year after you decide to, or it is "everyone in and everyone out" at the same time (or never)?
3) Annual management fee - is it calculated on your initial investment amount or will be reassessed with new rounds and valuations?
Thanks in advance!
1) What are your thoughts on how a potential Starlink IPO might play out for SPVs? Like will SPV be assigned Starlink shares and when you exit you get them?
2) What is real liquidity on those SPVs? I understand that you need to be prepared for the investment to be almost completely illiquid, but in practice - could you exit for example in 1 year after you decide to, or it is "everyone in and everyone out" at the same time (or never)?
3) Annual management fee - is it calculated on your initial investment amount or will be reassessed with new rounds and valuations?
Thanks in advance!
It seems like SharesPost had reached out to a lot more people for this opportunity, and it seems like they are fine with people being just accredited investors and not that higher requirement they had for the last opportunity. Hopefully that means they might reconsider the $1 mln minimum.
419.99 @ 20% carry sounds like an amazing deal, considering how old that price is. Especially compared to what I've seen elsewhere recently. For those getting sharespost emails - how did you indicate to them you'd be interesting in SpaceX? I really haven't been able to get anyone at sharespost to respond. I did call them up and talk to someone a couple weeks ago specifically about SpaceX, that still didn't put me on "the list". Nor did multiple indications of interest.
That's their entire incentive to put the fund together. We are speculating on SpaceX's growth, and they are banking (the fund not sharepost) on an "easy" 20% return.
Liquidity is pretty low. You can request an out but it's at the fund's discretion. I assume if the company continues to do well it won't be a big problem, just a process. I'm planning on a 10 year horizon myself to be conservative.
My understanding is that if Starlink is spunoff the fund will have the option of giving us shares or equivalent dollar amounts. I don't think it matters too much really, except for taxes.
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