Make future transacations (such as equity financings or acquistions) easier
Clean up the cap table to make it easier to manage
Clean up many SAFE issuances into a single row per set of terms.
Do Consolidation Vehicles preserve QSBS status for investors?
Yes. While this is not tax advice, the process of consolidation does not change the QSBS status of the stock.
Consolidation Vehicles do not involve a SPV or partnership entity – investors maintain their ownership for tax purposes, and would be able to claim QSBS just as they would without a Consolidation Vehicle.
Who can use Consolidation Vehicles?
We are currently supporting US-based C corporations, focusing on those that have raised venture capital.