Syndicate leads commit to providing a written investment thesis outlining their due diligence for each of their investments and disclosing potential conflicts of interest such as warrants, advisory shares or an investment in a previous round.
They should plan to make an investment in each of their syndicated deals, and to review and screen potential investors in each deal.
Leads may be required to register as an investment adviser depending on their state and the total amount of funds they have under management.
Leads are not required to syndicate every deal they invest in.
Leads should be prepared to field inquiries from backers about their investments, even though backers have limited information rights.
CrowdFundConnect (CFC) and the lead enter into an agreement on the services to be provided by CFC that alleviate the administration time and costs that are associated with managing an LLC.
Any accredited investor can invest in a syndicate provided they agree to the syndication terms provided by the Canna Champion. Canna Champion / leads can then accept or reject an investor.
Yes. The deal room can be set up for privacy and available by invite only – however this will significantly hinder the ability to get investment and diligence that our canna crowd can provide and should only be done under special circumstances and must be agreed to in advance by the management of CannaFundr.
Absolutely! In fact, you can raise capital for your fund directly on CannaFundr. Approved Individuals and VC funds can both form and lead syndicates.
Taxes for the companies are required to be completed by a registered CPA and paid for by the company.
CFC will prepare the Form 1065 for federal taxes for the syndicate LLC annually, generate and issue K1s for electronic delivery, and distribute all dividends via electronic check payment or ACH deposit to all shareholders within the LLC after receipt of distributions from the issuer.
Our administrative fees are determined by the greater of a predetermined flat rate OR a percentage of fund revenues whichever is greater.
