The investments are made through SPVs adhering to 506(b) regulations. All investors will be screened when they add their bank account into the SPV platform.

Unlike other accelerators, BoomStartup’s demo day kicks off the diligence and mentoring window where the founders and interested investors initially meet and then set up meetings over the following three weeks to see if there’s investor interest and investment alignment. 

On March 18, investors will hear each startup’s 15-minute pitch and then get the chance for a 10-minute Q&A. Investors will then answer a scorecard that rates their interest in the deal and ask for a check size amount for an Investment Carve Out for this round.

Investors must complete the scorecard. If the investor does not commit any dollars to the carveout, then the investor is passing on the investment opportunity and foregoes any future investment opportunity on this round.

The investor will not invest outside of the BoomStartup SPV or else they will loose all opportunities to review and participate in future investment opportunities associated with BoomStartup companies.

Due to the nature that we are quickly raising and closing a round for these startups, investors have until March 22 to commit their investment allocation carveout.

Investment Carve Outs DOES NOT commit investors to funding the startup.

Carve Outs allow BoomStartup to calculate what the high end of the raise will be. BoomStartup will then work with the startup on how to work with this raise amount, and how they should adjust their budget and expectations to work with that amount.

The actual investment amount that each investor contributes will be determined by the investor after conducting Due Diligence and 1:1 Mentor meetings with the founding teams.

Proceeding the diligence and mentoring window, BoomStartup will ask for the Actual Investment Amount from each investor who allocated a Carve Out, on April 12 at 12pm MT.

Investors can make a different Actual Investment Amount than the Carve Out.

NOTE: If investors do not commit to a carveout by March 22, the investors will not get access to the diligence material or historical participation information that BoomStartup has collected on the company. They are in effect opting-out of this round.

Investors will conclude their deal diligence by April 12, 2022 and either commit to investing or cancel their carveout.

Investors are responsible for conducting their own diligence process. BoomStartup will supply any requested information to the investors who are participating in this round. BoomStartup will facilitate the meetings and track participation.

Each startup has come up with reasonable investment terms due to market analysis and investor risk. However these are not set in stone. Unless set by previous tranches, the investor who is writing the largest check in this round will have the right to negotiate with the startup on the final terms, which must be agreed by April 12 at 12pm MT.

Each investor will commit their Actual Investment Amount On or Before April 12, in preparation of setting up the round’s SPV.

When the SPV is created the investor will be asked for their bank information so the funds can be wired and their participation is locked. 

BoomStartup has been selected to be each startup’s SPV organizer to streamline the investor participation and investment management service. 

All investments in this round will be consolidated into one SPV, benefitting the startup as it simplifies their cap table with a single entry. 

Pending the total amount committed, Investors will own a percentage of the SPV, and BoomStartup will manage all change of ownership, contact information, taxes documentation, and other standard investment maintenance for the life of the SPV.

If a profitable exit occurs, BoomStartup will collect a 10% carry (on the investment profit) that will be paid out when the SPV is dissolved.

BoomStartup does not have any additional fees. BoomStartup does not have equity in these companies, so our alliance is not only that these companies are fundable, but they are on a path for an exit.

The SPV service fees will be paid by the company, it will not be extracted from the SPV prior to investment.

If you have questions about SPVs, please contact Tara Spalding for additional information.