Equal. Annual. Earned.

At the close of each fiscal year, Unlocked Ventures calculates the profits generated across its social enterprises. Before distributions are made, a small portion of those profits is set aside to sustain the fund itself and support its continued operations. The remaining profits are then distributed to investors in equal amounts per unit.

An investor who holds one unit receives one equal portion of the distributable profits. An investor who holds five units receives five equal portions. The more units an investor holds, the greater their annual distribution.

Each unit carries a maximum cumulative return of $1,000. Distributions accumulate from year to year, and once a unit has received $1,000 in total distributions across all years, that unit is retired and no longer participates in future payouts. A unit purchased at $250 that reaches its $1,000 ceiling has returned four times its original investment.

As Unlocked Ventures grows and additional social enterprises are launched by the fund, the annual distribution pool may grow with them. Each enterprise that reaches profitability contributes to the yearly payout, which means the fund is designed to become more valuable to investors over time. When the fund reaches a level of performance that demonstrates the strength of its social mission alongside its financial return, an additional investment offering becomes a natural next step — one that gives Michigan residents the opportunity to invest in the continued growth of the fund and the enterprises it launches.

The complete terms governing distributions, the fund's retained earnings, and the conditions under which additional offerings may be made are available in the disclosure statement.

Distributions received from Unlocked Ventures may be subject to federal and state income tax. Each year, investors will receive an annual distribution notice documenting any amounts paid to them during that year. A Form 1099 will be issued where required. Investors are encouraged to consult a qualified tax advisor regarding how distributions are treated for their individual tax situation. Unlocked Ventures does not provide tax advice.