When one of your deals has a liquidity event (exit, dividend, acquisition, IPO, etc.), Seed Labs manages the distribution back to you. This page covers what to expect and what Seed Labs needs from you to get paid out smoothly.

Distributions process

Here's what happens behind the scenes when a deal distributes:

1. Seed Labs is informed of a liquidity event.
2. Seed Labs coordinates with the investment to obtain details of the liquidity event and execute any necessary signatures.
3. Seed Labs reviews the transaction documents and prepares a distribution preview for GP approval. This preview includes a detailed breakdown of the distribution to each investor, including carry paid to the GP and other deal partners as applicable.
4. Seed Labs coordinates with the company to receive the proceeds.
5. Seed Labs performs a tax review and applies any required tax withholding.
6. Once approved, Seed Labs processes the distribution and disburses to all parties.

A distribution can come to you as cash or in-kind (shares).

Cash distributions

For a cash distribution, Seed Labs sends your proceeds by wire to your bank account.

Adding wire information

Make sure your wire details are on file and accurate before the distribution is processed. Inaccurate or missing wire information is the most common cause of delayed payouts. If you're unsure of any detail, confirm it with your bank.

In-kind distributions

Seed Labs supports in-kind distributions of public market shares to investors. Instead of cash, shares are transferred directly into your brokerage account.

Adding brokerage information

The following details about your brokerage account are required to receive in-kind shares:

1. Brokerage Firm Full Name
2. DTC Number
3. Brokerage Account Number
4. Account Owner

If you're unsure about any of these details, reach out to your brokerage firm. Inaccurate brokerage information can delay the in-kind transfer process.