At Knight Investment, we are committed to providing thorough information for investors, so you know the potential risks and benefits of your chosen investment. Here’s some information on frequently asked questions to get you started.
What is your minimum investment size?
For listed equities our standard minimum investment size is $5,000.00 (USD) for retail investors, this is also the suggested minimum for opening a trading account with Knight Investment.
Pre-IPO opportunities usually require accounts to have been established for a minimum of 3 months and with a balance in excess of $25,000.00 (USD).
What are the investment banking fees?
Knight Investment currently charges 1% commission on the buy side and 1.5% on the sell for listed equities and for pre-IPO investments a one-time due diligence fee of 5%, a 2% management fee, and a 1% expense fee.
What kind of paperwork or venture capital documents do I receive as a pre-IPO investor?
Paperwork is similar to that of any fund investment, but simpler. An investor would sign a Subscription Agreement and would also complete a one-time W-9 (W-8 BEN for foreign investors) and Suitability form. On an annual basis, investors will receive a Schedule K-1 updating them on their investment. All legal and financial documents are prepared with the involvement of outside counsel or accountants, as applicable.
Once I invest, will I receive any formal or legal investment banking documents stating my investment?
Yes, you will receive your countersigned Subscription Document indicating your inclusion into the pre-IPO. You will also receive a welcome letter outlining the Series of participation and breakdown of your investment.
Will I be receiving any financial updates for my investment? How often?
Yes. We will also update you on any material impact to your investment (company news, new funding rounds, secondary transactions, or indicators to new valuation).
The company I invested in has an initial public offering (IPO). What happens next?
If a company series in which you’ve invested goes public, we would register the shares and transfer them to your online trading platform. Typically, the common stock is subject to a 180-day lockup, so we would facilitate the transfer after this period.