Redemption Facilitation Process Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing. In an early-exit term sheet, it’s important to have a redemption facilitation process. This includes the steps for setting up the bank accounts, capturing the investor’s interest, providing payouts, and investor updates. The process also tracks escrow of repayment funds and later revenue share payments to complete the redemption process. For the redemption exercise, here is the timeline and steps: 180 days from Note maturity: Capture the current version of the cap table and financials, including the current income statement and balance sheet Send a notice to the investors to consider their decision to redeem 90 days from Note maturity Confirm the investors’ decision to redeem Prepare payment options for the company to consider  60 days from Note maturity date Send notice to the investors of impending maturity and confirm their decision on redemption 30 days from Note maturity date Update investors with status on a regular basis Send notice of redemption to the company and ask for payment due in one week 23 days from Note maturity date If payment is not received, then a payment plan will be due in one week by the company 16 days from Note maturity date if no payment plan is provided Set up a follow-up meeting with the company to discuss options Upon maturity of the Note or in the event of a Corporate Transaction payment Create a promissory note of the debt due Elect a board of directors with investors having a majority control Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let’s go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at:   Check out our other podcasts here:   For Investors check out:   For Startups check out:   For eGuides check out:   For upcoming Events, check out   For Feedback please contact info@tencapital.group   Please , share, and leave a review. Music courtesy of .

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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.