Investment Increases

An investment increase happens when an investor wants to add more money to an existing investment. Instead of creating a second investment, the original investment amount is increased and (if needed) a supplemental payment is collected.

How Increases Work

Step 1: Request

The investor indicates they want to increase their investment. This may come through the platform or through direct communication with the ops team.

Step 2: Approval

An admin reviews and approves the increase request. Before approving, the admin should verify:

• The SPV is still open -- increases can only happen while the SPV is in the "pending" (open) state. Once an SPV is closed, no increases are possible.
• The new amount meets the SPV minimum -- the total amount (original + increase) must still be at or above the SPV minimum.
• The deal can accommodate the additional capital -- check whether the target raise has room for the increase.

Step 3: Amount Updated

Once approved, the investment amount is updated to the new (higher) amount.

• The fee schedule is automatically recalculated based on the new total amount. Unlike amount adjustments (which offer preserve/custom fee options), increases always recalculate the fee because the investor is genuinely committing more capital.
• The fee cap ($1,500 max) still applies after recalculation.
• If the fee was previously locked (e.g. from a gross-up), the lock is cleared and the fee recalculates on the new total.
• The audit trail records the change, including old/new amounts, old/new fees, and how much has already been collected.

Step 4: Supplemental Payment (If Already Funded)

This is the key scenario: if the original investment was already funded (money already received), the system can create a supplemental payment order for the difference. The admin chooses whether to create the supplemental payment at approval time.

Example:

• Original investment: $5,000 (already funded)
• Increase to: $8,000
• Supplemental payment order: $3,000

The SPV must have an active virtual account for a supplemental payment to be created. If the SPV does not have a virtual account (e.g. a V1 SPV that has not been migrated), the increase can still be approved (amount and fees updated), but the supplemental payment option will be blocked. The admin will see a clear error message if they attempt to create a supplemental payment without an active virtual account.

The supplemental payment follows the investor's existing payment method:

• ACH -- if the investor has a registered bank account, an ACH debit is initiated for the delta amount.
• Wire -- if no registered bank account is available, a new expected wire payment is tracked for the delta amount.

If Not Yet Funded

If the original investment hasn't been funded yet (no payments collected), the amount is simply updated. The payment order (when it's created) will reflect the new total amount. No supplemental payment is needed -- even if the admin selects "create supplemental", the system skips it when no money has been collected yet.

Cancelling Existing Wire Instructions

When an investor switches from wire to ACH (or simply needs updated wire instructions), the admin can choose to cancel existing expected payments as part of the increase approval. This cancels any active (pending or matched) expected wire payments, allowing fresh payment tracking to begin for the new amount.

Denying an Increase Request

If an increase request cannot be approved (e.g. SPV is at capacity, compliance concerns), the admin can formally deny the request. This records an audit entry with the reason for denial but does not change the investment amount or status in any way. The denial is purely for record-keeping.

What Admins Should Know

• Investment must not be cancelled -- you cannot increase a cancelled investment.
• Fees always recalculate on increase -- the platform fee adjusts to reflect the new total amount, including the fee cap ($1,500 max). There is no "preserve fee" option for increases because the investor is genuinely committing additional capital.
• Supplemental payments follow normal flow -- the supplemental payment order goes through the same pipeline as any other payment (ACH or wire), including the same retry logic for failures.
• Supplemental only when money already collected -- if the investor hasn't paid yet, no supplemental is created. The initial payment will use the new total.
• Cancel expected payments when needed -- if the investor had active wire instructions and is now paying via ACH (or needs fresh wire instructions), use the "cancel expected" option during approval.
• One increase or many -- an investor can request multiple increases as long as the investment is not cancelled.
• Audit trail captures everything -- every increase (and denial) is recorded, including the original amount, new amount, delta, fees, already-collected amounts, who approved/denied it, and when.