Transform your StartUp equity into a liquid asset.
Sonicorn Private Market Equity Service helps StartUps to trade their equity with Institutional and Accredited Investors.
Private capital markets have become an increasingly popular way for Start-Up companies to raise capital across the world in recent decades. This Legal Framework allows firms to acquire funding from institutions and wealthy individuals without the regulatory burdens of going public. The number of unicorns—private companies valued at $1 billion or more—has continued to grow even amid the recent boom in initial public offerings.
Sonicorn Private Equity Consulting Service helps early-stage start-up investors, entrepreneurs, and employees to trade their vested private equity shares with high net worth individuals, institutions, hedge funds, and other legal entities through registered Broker-Dealers, Alternate Trading System and ECS. Sonicorn Buy-Side Consultants are not Registered, Brokers. Neither Sonicorn is a Registered brokerage firm nor an ATS. We consult and match the Investors to the corresponding deals within our Directory and to be executed by the Registered brokers, ATS.
Sonicorn Buy-Side Consultants, work with registered representatives, sales traders, and Brokerage firms that are registered with FINRA. Our Consultants provide consulting services to buy-side firms or High Networth Individuals, Equity Funds, VC Funds to rightly choose the equities that have the ability to generate and access liquidity. Sonicorn is not an open market directory list. We work closely with the Start-Ups and Scale-Ups that have the ability to become a Unicorn. We execute the deals by matching them with registered traders/ Brokerage firms/ ATS. We shall either match with our network of registered brokers or the clients shall bring in their own. Sonicorn Consultants shall provide a powerful mechanism for liquidity generation backed by the market knowledge and experience of a network of traders, ATS, and Buyer-Broker firms meeting clients' investment goals.
Start-Up Early Stage-Investors: If you are either an FFF, Angel, or other PEI, Sonicorn Private equity Trading helps in selling your share to Accredited Investors and Other Institutions. who can legally buy your share?
Employees, Consultants, and Contractors: As an employee, Consultant, or Contractor at a fast-growing technology company, a large percentage of your compensation may be paid in equity or stock in the company or digital Assets. Typically, you earn this stock or digital Asse Tokens over many years, and the amount may be refreshed throughout your career. Today, the average startup stays private for 10 years before IPO or 5 years before ICO(for digital Assets). That means that it may be as long as 5-13 years before you can easily sell your shares or digital Assets through a traditional stock transaction or digital Assets Transaction from an Authorized exchange. As a shareholder and an employee(or Consultant or Contractors), you may want to convert some of that stock or DAs into cash to fund something else in your life, like a house. Or as a way to diversify your financial profile. That’s where Sonicorn Private Equity Trading comes in.
High Networth Individuals: If you are a High Network Individual, funding the right trustworthy investment opportunity that matches your portfolio needs is a daunting task. Sonicorn shall make it easy for you by presenting the right equity investment opportunity. As a Unicorn Business Hub, you will be dealing with Potential Unicorns that could increase your worth to multi-fold(and even exponential) value.
Sonicorn Private Equity Service FAQ
One has to clearly understand the difference between Public Companies and Private Companies. Public Companies are heavily regulated by the Stock Markets and Securities Exchange Commissions. The trading is approved only at the authorized exchanges. Anyone, including the retail investors(common-man), can trade public company shares through such exchanges. Unlike public companies, startups and private companies' shares and digital Asset equities are traded privately, not in public exchanges. But they still are still regulated by the Security and Futures laws. Retail Investors are prohibited from buying the shares. Private shares trade less frequently and are not required to make financial disclosures to the general public. As a result, private company stock(and digital Asset Equities) prices do not update as frequently.
Sonicorn has a proprietary platform of valuation data that is used to price your shares(and digital asset equities). In addition, Sonicorn Private Market Specialists are experienced in facilitating private market transactions. They can share their market insight and bring together all available information to assist you with the value of your shares.
Generally, startups and private companies (sometimes referred to as “issuers”) are supportive of their shareholders selling shares so they have cash for family and personal needs. Private companies often have different procedures in place to manage stock transfers. Your Sonicorn Private Market Specialist will help you navigate your interactions with the company and its preferred transaction process.
For traditional shares, the transaction size is $10,000 minimum.
For digital Asset Equities, the transaction size is $1000 minimum.
For transactions less than $10,000 - 15% Commission
For transactions between $10,000 - $49,000 - 10% commission
For transactions 50,000 - 99,000 - 7% commission
For transactions above $100,000 - $999,000 - 5% commision
For transactions above $1M - 3% commission.
Buying shares(and digital Assets) of private companies can be challenging. You must be, at minimum, an “accredited investor” to purchase private company securities. The process can extend up to months from acceptance of your posted interest to the closing of a transaction. This process includes the execution of certain legal agreements, notification to the issuer who can elect to exercise its Right of First Refusal or block a potential transaction, and coordinating with any other issuer transfer requirements. Typically, to purchase Private securities (private company stock or digital Security Asset), you must be, at minimum, an “accredited investor”. These terms are defined under the securities laws for individuals and corporate entities that meet certain financial criteria. There is, however, no such accreditation requirement for those seeking to sell such unregistered(private) securities.
There is no formal marketplace or exchange where the prices of such shares are published. These prices are not regulated or monitored by any government agency. Unlike public companies, private companies are not generally required to make financial disclosures to shareholders or prospective investors. As a result, valuing private company shares can be difficult. Private market investors under Sonicorn shall leverage the Blockhain/ Ai Enabled platform, powered by karmaCapsuleNetwork for Provenance, Integrity, Immutable History with Single-Truth view previous trade and valuation data as well as additional proprietary insights through Ai Powered Market intelligence.
According to US SEC, dated April 14, 2021
The SEC’s Office of Investor Education and Advocacy has issued this Investor Bulletin to educate individual investors about what it means to be an “accredited investor.”
What does it mean to be an accredited investor?
Under the federal securities laws, only persons who are accredited investors may participate in certain securities offerings. One reason these offerings are limited to accredited investors is to ensure that all participating investors are financially sophisticated and able to fend for themselves or sustain the risk of loss, thus rendering unnecessary protections that come from a registered offering.
Unlike offerings registered with the SEC in which certain information is required to be disclosed, companies and private funds, such as a hedge fund or venture capital fund, engaging in these exempt offerings do not have to make prescribed disclosures to accredited investors. These offerings involve unique risks and you should be aware that you could lose your entire investment.
Who is an accredited investor?
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 or spousal equivalent) 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 or spousal equivalent (excluding the value of the person’s primary residence), OR
- holds in good standing a Series 7
There are other categories of accredited investors, including the following, which may be relevant to you:
- any trust, with total assets in excess of $5 million, not formed specifically to purchase the subject securities, whose purchase is directed by a sophisticated person, OR
- a certain entity with total investments in excess of $5 million, not formed to specifically purchase the subject securities, 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.
Visit the page for further information: