Monthly allowance and company reporting

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For companies

Funds raised on Spring are not paid to the company in one sum. They stay in the round’s on-chain escrow and are released to the company as a monthly allowance, a fixed amount agreed before the raise.

Reporting. The company posts an update for investors every month. Updates cover:

• milestones and key metrics;

• use of funds;

• challenges and risks; and

• priorities for the next period.

Each month’s allowance can be claimed only after that month’s update has been posted. Spring checks that the update was submitted on time. It does not assess the update’s content.

Changing the allowance. To increase the monthly allowance or request a one-time release, the company submits a proposal that the round’s investors vote on.

For investors

• The company’s allowance is released monthly from escrow, according to the terms agreed before the raise. Changes, such as an increase or a one-time release, require investor approval through governance.

• Investors receive a monthly update from the company covering progress, key metrics, use of funds, risks and next priorities.

• Investor vesting follows the company’s release progress

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