The EBG permits participating companies to repurchase the equity purchased by Techstars at the same price paid by Techstars.
The EBG may be exercised at any time after Demo Day (or, for those programs that end before or without a public Demo Day, the final day of Program) and prior to 6:00 p.m. local time (based on the location of the Program) on the 3rd business day thereafter. A virtual Demo Day is deemed to occur on the date that the event goes live online.
The Company must provide written notice via email to their MD and firstname.lastname@example.org of the Company's election to exercise the EBG. The notice must provide an explanation of our failure that resulted in the exercise of the EBG.
Techstars may, and usually does, require repayment of its convertible note as part of the EBG exercise.
The EBG will automatically terminate early upon (1) the closing of a financing (equity, convertible notes, SAFEs or a combination thereof) with aggregate proceeds to the company in excess of $250,000 that occurs after the date of the signed Letter of Intent to participate in the Program; (2) Network Launch (pre-sale, initial coin offering, air drop, token distribution event, crowdfunding, or issuance of any instrument convertible into or exchangeable for Tokens that permits access to or use of a Network created, managed or licensed by the Company), or (3) the sale or acquisition of the company.