Revolutionizing SMB Shareholder Management: Unmatched Transparency and Efficiency

Introducing our Shareholder Management Suite

To help build more trust between entrepreneurs and investors, we have launched and beta tested a suite of first-of-its-kind SMB shareholder management tools. This suite of tools serve as the connective tissue between entrepreneurs and SMB investors, leveling the playing field for SMB investors by offering capabilities previously reserved only for institutional private equity.

In addition, all new investment opportunities listed on the Mainshares’ platform are required to utilize the Mainshares Shareholder Management suite at zero cost to the Mainshares Investor Network.

Challenging the Status Quo for SMB Investing

Mainshares exists to fight for independent ownership, prosperous communities, and the future of America’s small business economy. One of the ways we are delivering on that mission is by matching entrepreneurs with our network of over 600+ accredited investors. These investors believe in our mission and want access to the SMB asset class. Earning and maintaining the trust of our investor network is essential to empowering the next generation of owner-operators to succeed.

The historic perception of the SMB asset class is that it’s only accessible to institutionalized private equity due to factors such as expenses being intertwined with the business, minimal governance, lack of transparency in financials and ad-hoc distributions. These perceptions act as a hurdle that isn’t found in more mature asset classes like real estate or venture capital. Although, our fast growing investor network is enthusiastic about the SMB asset class, we often hear the need for greater transparency and professionalism post-acquisition.

On the other hand, entrepreneurs have long lacked the equity raising and shareholder management resources available to private equity firms, leaving them on their own to try to capitalize opportunities and navigate shareholder management through trial and error, confusing excel docs, expensive wire transfers, unforeseen legal fees and overall shared frustration between lawyers, accountants, investors and entrepreneurs. Without the necessary tools and support available, the entrepreneur-investor relationship has suffered while institutional private equity has reaped unprecedented returns.

The good news is we’re solving these challenges.

Key Benefits for SMB Shareholders

Our suite of shareholder management tools empower SMB investors to invest directly into deals while receiving a transparent, institutional grade experience.

Investors are now able to:

• Seamlessly receive timely and contractually accurate quarterly distributions via ACH

• Receive quarterly investor updates and access to up to date financial statements

• Securely access key tax documents such as Schedule K-1 reports and 1099s

• Securely view their investment documents, data room and stock certificates

• Effortlessly participate in key shareholder votes

See the investor experience in action:

Key Benefits for Entrepreneurs

Our suite of shareholder management tools and dedicated support team empower SMB entrepreneurs to save time, money and prevent unforeseen legal expenses.

Key benefits and support with our Shareholder Management Suite include:

• Expert guidance for modeling waterfall distribution payouts

• Send investor distributions via ACH—no wire fees

• Easily share tax documents (K-1s, 1099s) via the shareholder portal.

• Integrate with your accounting software to report key financial metrics to your shareholders

• Maintain a secure data room for key company documents and a source of truth cap table

• Syndicate and review investor consents on voting issues

• Access to the Mainshares community and our Operator Network

See the entrepreneurs’ shareholder management tools in action:

Delivering Real Results

So far, our Shareholder Management tools have transformed how entrepreneurs manage their relationships with their investors . The first business that used Mainshares for shareholder distribution—which raised $850k from our investor platform in 2024—has already paid out over $160,000 in investor distributions via ACH payments through the platform.

🗣 “As an investor in multiple ventures, I’m impressed at how seamless and transparent distribution payments were on the Mainshares Investment Management platform. Being able to connect a bank account securely rather than emailing bank information while receiving updates on the payment processing offers a much more convenient way to manage search fund investments than historically.” - Johannes Hock Owner, Silvaner Capital

This first-of-its-kind shareholder management suite enables entrepreneurs to reclaim valuable time and focus on growth, while granting investors unprecedented transparency and peace of mind.

What's Next?

We’re just getting started. 2025 will bring even more enhancements to unlock the SMB asset class. In addition to enhancements to investor-entrepreneur relationship, we are busy working on creating more standardization and trust between entrepreneurs and retiring business owners with tools to professionalize seller financing management and earn-out management on the horizon.

Interested in Learning More?

For SMB investors, join the Mainshares investor network

For Entrepreneurs, contact our sales team

Information posted on this page is not intended to be, and should not be construed as tax, legal, investment or accounting advice. You should consult your own tax, legal, investment and accounting advisors before engaging in any transaction.