How M1 Fund Review Works

Effective Date: 24 February 2026

How M1 Fund Review Works

Structured, Independent Capital Allocation

M1 Fund operates as an affiliated but independently governed investment vehicle within the MoonshotNX ecosystem.

Platform readiness does not equal capital allocation.

Investment review is structured, gated, and discretionary.

1. Eligibility Threshold

Only companies that achieve an A rating through the independent grading framework are eligible for consideration by M1 Fund.

The rating:

  • Is issued by an independent third-party provider

  • Is based on structural, financial, and governance criteria

  • Is controlled solely by the ratings agency

  • Is not issued or modified by MoonshotNX

MoonshotNX does not override rating outcomes.

An A rating is a minimum eligibility threshold. It is not an approval.

2. Separation Between Platform and Fund

MoonshotNX provides preparation infrastructure.

M1 Fund makes investment decisions independently.

The fund:

  • Maintains its own mandate

  • Conducts its own diligence

  • Reviews opportunities at its discretion

  • Is not obligated to review every eligible company

  • Is not obligated to invest

Platform progression does not bind the fund.

3. Review Trigger

M1 Fund review may be triggered when:

  • An A rating is confirmed

  • Required documentation is complete

  • The company falls within fund mandate criteria

  • Internal review determines eligibility for escalation

Not all A-rated companies will be escalated to formal fund review.

Escalation depends on mandate alignment, portfolio construction, sector exposure, capital allocation timing, and risk balance.

4. Investment Committee Process

If escalated, the company may proceed through:

  • Preliminary screening

  • Independent diligence

  • Investment committee discussion

  • Final allocation decision

Each stage is discretionary.

M1 Fund may decline at any stage.

5. No Guarantee of Capital

An A rating does not guarantee:

  • Review

  • Term sheet

  • Allocation

  • Follow-on capital

  • Timing

Capital deployment depends on fund capacity, mandate, risk concentration limits, and independent investment judgment.

6. Documentation and Transparency

If a company progresses to fund review:

  • The review stage is logged within the system

  • Documentation versions are recorded

  • Communication status is tracked

This ensures structural clarity and audit integrity.

7. Why the A-Threshold Exists

The A rating threshold ensures:

  • Structural discipline

  • Governance maturity

  • Financial coherence

  • Data room completeness

  • Reduced early-stage noise

It protects:

  • Founders

  • Investors

  • Fund LPs

  • Ecosystem integrity

Capital is deployed through standards, not persuasion.

8. Founder Responsibility

Founders remain responsible for:

  • Accuracy of materials

  • Ongoing compliance

  • Legal documentation

  • Investor communications

  • Transaction execution

M1 Fund does not act as an adviser to the founder.