Investor Presentaiton
Eligibility Requirements for Investments
Eligible investments are those that meet the following requirements:
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Must be made in a certified QNBV.
Must be made on or after the date the QNBV was certified to participate in the program and within the eligible calendar year.
Must be $10,000 minimum and $2,000,000 maximum.
Investment must remain (except in the event of a "qualifying liquidity event") in the QNBV for a minimum of 3 years
"Qualifying liquidity event" means any event that would be considered an exit for an illiquid investment, including any event that allows the
equity holders of the business (or any material portion of the business) to cash out some or all of their respective equity interests in which
the claimant does not convey an equity interest to the QNBV or a related member of the qualified new business venture.
Must be given at a risk of loss and in consideration for an equity interest of the QNBV. An investment is at risk of loss if its repayment depends
entirely upon the success of the business operations of the QNBV. A contingent equity investment is an investment.
"Contingent equity investment" means money (or its equivalent) given to a qualified new business venture in consideration for a future
equity interest that matures or converts to equity within three years after the investment. If the agreement governing the investment does
not provide for mandatory and unconditional conversion within three years after the investment, the investment will not be considered a
contingent equity investment. Contingent equity investments that have features of a debt instrument may be ineligible for a tax credit if the
agreement contains unreasonable risk mitigation provisions.
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"Unreasonable risk mitigation provisions" means investment terms that remove a significant degree of the risk of loss during the three
years following the investment. Examples of these provisions include provisions for interest payments, security, and priority in the
event of liquidation.View entire presentation