When it comes to divying up the Fund's allocation in an investee company carrying out a further funding round, the Fund's investors are prioritised in the following order:
1. Firstly, Fund investors who already have the company in their portfolio will be able to fully take up any subscription rights they may have under the company's or any statutory (if applicable) pre-emption provisions which apply on the issue of new shares.
2. Secondly, and where there are no pre-emption provisions triggered by the further funding round, Fund investors who already have the company in their portfolio in the proportion to which their investment in the company bears to the other Fund investors' investment in the company.
3. Thirdly, Fund investors who do not yet have the company in their portfolio.
We will do our best to keep 20% of the Fund's total allocation in companies listed on the portal carrying out live funding rounds for investors who requested that the Fund invest in that particular company. This is conditional however on there being sufficient demand and provided that Fund investors who have the benefit of pre-emption rights have received their full entitlement under them.
We have an overriding obligation to treat all Fund investors fairly and if in our opinion the above allocation basis creates an unfair outcome then we do reserve the right to depart from this.