A simple startup fundraising instrument with built-in insurance for investors.
If you're familiar with the old-school SAFE, this should be pretty easy.
Startups submit their applications to be approved for SAFER; we conduct comprehensive diligence.
Upon approval, 228 issues the startup a term sheet outlining terms in which it will buy out investors upon execution of the future equity return; essentially, an insurance quote for potential investors.
The fundraising deal is executed between startup and its investors, using a SAFER term sheet. Founders allocate a percent of the company to 228 in exchange for the service, and VCs write a check to 228 as a one-time insurance premium.
The investor decides to execute their option within the predefined window. Ownership of shares is transferred from the investor to 228, in exchange for a check equivalent to their principal investment.