Once a deal closing notice is sent, all investments queued in that closing enter a 5-business day “cooldown” period. Investors are notified of the pending closing (e.g., settlement) of their investments and are given 5 business days to cancel their investments if they so choose.
Once the 5-business day “cooldown” period has passed, SeedInvest drafts all necessary documentation and agreements and works through bookkeeping, legal, and compliance processes within three business days. At the end of this closing preparation and set-up period, a set of final documents are passed on to the company to review, approve, and sign. Included in this final document packet are instructions to the independent escrow agent to release funds to the company.
The formal instructions to appropriately disburse funds from the escrow account are promptly relayed to the escrow agent; companies can expect to receive their funds within 2-3 business days after these instructions are sent.
In the final steps of a closing and over 5-7 business days after the release of funds, SeedInvest continues its work in the background to ensure that all funds were properly disbursed and that all investments are properly booked and settled at any 3rd party custodians.