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Webform lets founders invest in startups without using cash. Specifically, we enable founders to pool future exits, effectively buying into each others' businesses with the cash value of their individual equity.
No. If and when you sell personal equity in the future you'll contribute a percentage of that cash flow to your pool. It's essentially income pooling - you are not transferring actual equity and no one new goes on your cap table.
This means you do not require shareholder consent to use Webform, it doesn't matter where your company is incorporated or if your shares are unvested.
Not really. Webform enables you to leverage up your company's value because we let you spend it like cash.
Think about it, VCs take less risk and on average have better returns than founders - Webform gives you the same opportunities and, in the off chance your business doesn't succeed, you'll be grateful for the diversification.
You agree to pool a percentage of proceeds from selling equity you personally own in the future. This commitment is valued based on the company’s current valuation and determines your pro rata ownership of all exits in the pool.
For example, a pool with 10 founders running $10M companies each where each pools 1% is valued at $1M and each founder owns 10% of that pool’s future liquidity.
Taxation is unique to every pooler based on their jurisdiction and personal tax planning.
In general contributions into the pool are calculated on the gross amount of liquidity. Distributions to you from the pool will be taxed either as income or capital gains, depending on your jurisdiction. We expect most US founders will pay no tax on the their first $10M of liquidity (Qualified Small Business Stock exemption) and pay income tax at their marginal rate when receiving distributions from the pool.
Yes. While we have a rigorous vetting process to accept pools to the network, you form your own pool and thus have final say on who's in your specific group.
Currently our pools are formed contractually but in the future poolers will have their commitments tokenized. This will enable our users to permissionlessly decide how pools are formed, who’s in them, and how exits are distributed – at scale and without intervention from Webform.
With tokenization, pools will become composable, Webform's revenues will be reinvested into pooling companies, and all poolers will be benefit from this ecosystem by receiving tokens proportionate to their commitments.
You’re free to pool an amount above our minimum of 1% of the company value. This translates to the percentage of your future personal liquidity you will distribute to your pool.
For example, if your company raised 3 months ago at $10M, you own 50%, and you want to contribute our minimum 1%, you’re committing to contributing 2% of liquidity you receive from selling personal shares in the future (1% / 50% = 2%).
A portfolio pool personally diversifies your founders and gives them added confidence to take the big risks necessary to build a unicorn. It also financially aligns companies to collaborate so they're more likely to help each other. Lastly, you can differentiate your platform when writing checks by offering your founders access to the same companies you're invested in. At zero cost to you.
Reach out here and one of the founders of Webform will be in touch.
