---
title: How do I cut back investor allocations?
description: This article explains how Sydecar handles investor cutbacks.
---

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# How do I cut back investor allocations?

## This article explains how Sydecar handles investor cutbacks.

**You can Reduce an investor's allocation down to $0 before close without asking them to sign again.**

### **What is a cutback?**

A cutback is a reduction to an investor's allocation before your deal closes, usually because the deal is oversubscribed. On deals with cutbacks turned on, you can reduce a signed investor's allocation to any amount, down to $0, and they do not sign again.

### **How do I turn on cutbacks?**

 

In your deal's SPV Terms, turn on "Allow cutback to $0 without re-signing." Every investor you invite after that has cutbacks on by default. You can turn it off for individual investors when you invite them or later in "Modify Terms."

*Note: Turning the setting on or off does not change investors you have already invited. Update those investors individually in "Modify Terms."*

### **How do I cut back an investor?**

Navigate to your SPV's "Investors" tab \>\> click the "..." menu \>\> click "Modify Terms" and lower the allocation. If the investor has cutbacks on (the ≤ icon next to their name), the change applies right away and they receive an email showing their previous and new allocation.

### **Will my investor have to sign again?**

Not for a cutback, as long as the investor had cutbacks on when they signed. They agreed to it before signing, so a reduction is within what they signed.

A re-sign is still required if you raise their allocation, raise their carry or management fee above what they signed, or turn cutbacks on for an investor who has already signed. "Modify Terms" tells you before you submit whether a change needs a re-sign.

### **What does my investor see?**

Before signing, investors with cutbacks on see a notice in their invite email and on the deal page that you can reduce their allocation to $0 before close, and that any difference is refunded within 5 to 7 business days. After a cutback, they receive an email with the change.

### **What if the investor already wired?**

They show as overfunded by the difference until you request close. At close, only their signed amount closes and the rest is refunded. Overfunded investors go through partial and final closes with everyone else; you do not need a separate close for them.

### **Is this available for all deals?**

Cutbacks are available on deals created on or after October 1, 2026 at 6:00 PM PT. On deals created before then, reducing a signed investor's allocation still requires them to sign again.

Still have questions? Contact our Deal Operations team at operations@sydecar.io.

This article describes how cutbacks work on Sydecar and does not constitute legal or tax advice.

- [Deal Leads](https://help.sydecar.io/deal-leads?hsLang=en#main-content)

    - [Onboarding & Profile Management](https://help.sydecar.io/deal-leads?hsLang=en#onboarding-profile-management)
    - [Setting up your SPV](https://help.sydecar.io/deal-leads?hsLang=en#setting-up-your-spv)
    - [Fundraising](https://help.sydecar.io/deal-leads?hsLang=en#fundraising)
    - [Closing / Post-Closing](https://help.sydecar.io/deal-leads?hsLang=en#closing-post-closing)
- [Investors](https://help.sydecar.io/investors?hsLang=en#main-content)

    - [Onboarding & Profile Management](https://help.sydecar.io/investors?hsLang=en#onboarding-profile-management)
    - [Investing / Funding](https://help.sydecar.io/investors?hsLang=en#investing-funding)
    - [Post-Closing](https://help.sydecar.io/investors?hsLang=en#post-closing)
- [FAQs](https://help.sydecar.io/faqs?hsLang=en#main-content)

    - [Compliance](https://help.sydecar.io/faqs?hsLang=en#compliance)
    - [SPV](https://help.sydecar.io/faqs?hsLang=en#spv)

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