Oxygen Venture Partners
Investor Relations
Institutional Clarity
Oxygen Venture Partners maintains a rigorous standard of transparency for our accredited investors. This compendium serves as the primary guidance for equity participation and structural governance.
For inquiries beyond this document, contact your designated relationship manager.
Is it difficult to find a shareholder to part with their equity?
Selling shareholders are current and former employees, early investors, and advisors. They typically sell only a portion of their holdings to cover costs related to exercising shares and taxes, handle life events (e.g., buying a home, having a child), diversify their holdings.
How is my investment treated for tax purposes?
Investments are generally taxed like any fund investment. Network funds are taxed as partnerships, meaning gains and losses pass through to investors. Long-term holdings (over one year) are typically taxed at capital gains rates. Investors receive a Schedule K-1 annually. They recommend consulting a tax advisor.
Once I invest, will I receive any formal or legal documents stating my investment?
Yes. Investors receive: A countersigned Subscription Document, A Welcome Letter outlining participation and investment breakdown.
Will I be receiving any financial updates for my investment? How often?
Yes. Annual K-1s are issued by a fund administrator. Investors are updated on material events (company news, funding rounds, valuation changes).
Can non-accredited investors invest?
No. Offerings are only open to accredited and qualified investors.
How long can I hold these shares?
After an IPO lockup period, shares can be transferred to your brokerage account. No guaranteed exit timeline. Typical investment horizon: 2-5 years.
Why can't I just buy the shares directly from the shareholder?
Same reasoning as Q1: sellers are employees, investors, or advisors selling portions for liquidity, taxes, life events, or diversification.
How do you price the shares?
Pricing is based on: Latest funding round, Expected IPO range, Investor demand, Market activity and public information.
Do I own the stock in these companies?
No. You own membership in an LLC that holds the shares or economic interest.
Do I have the option to sell before the company goes public?
Selling is possible with manager approval. The firm may help find a replacement buyer. No guarantee a buyer will be found.
How are the investments structured?
Investors are members of an LLC fund. Funds may create "Series" for specific investments. Each series is separate and invests in specific companies or assets.
What is your minimum investment size?
Varies by fund.
Can you provide the company's financials, exit strategy, and prospectus?
No. They rely on due diligence from prior institutional investors and pricing based on those rounds.
Initial Public Offering (IPO): what happens next?
Shares are registered and transferred to your brokerage account. Typically subject to a 180-day lockup before transfer.
What kind of paperwork do I receive as an investor?
Subscription Agreement, W-9 (or W-8 BEN for foreign investors), Suitability form, Annual Schedule K-1. Documents prepared with legal/accounting oversight.
What is the "right of first refusal" clause?
A contractual right allowing the company to match a third-party offer and purchase shares before they are sold elsewhere. Company typically has up to 30 days to decide. Can waive the right.