Where investor funds are held during a round and how they can leave escrow.
Funds committed to a raise on Spring are held in an on-chain escrow: a smart contract that holds the funds and releases them only under the rules agreed for that round.
Each round has its own escrow.
Investors commit funds in the stablecoin selected by Spring for the platform. Allowance payments, refunds and payouts are made in the same stablecoin.
Funds held in escrow belong to the round’s investors until they are released to the company. Once released, they belong to the company.
Escrowed funds are not held in Spring’s operating bank account or in a general-purpose company wallet.
How funds leave escrow
Funds can leave escrow only in the ways the round’s terms allow:
the company’s monthly allowance;
a one-time release or allowance increase approved by investors through governance;
refunds, for example when a stage does not reach its minimum; and
a reclaim approved by investors.
Spring does not decide how escrowed funds are used and does not direct them to any purpose other than those set out in the round’s terms. Once funds are released to the company, the company decides how to use them. Spring’s role is administrative.
Need more help?
We’ve aimed to cover everything here, but if your question isn’t answered — or you’ve spotted something that needs correcting — contact us at team@usespring.io
A member of the team will respond.