Formational Ventures - About Us: General Info

Member subscribers who choose the Directed-Investing Plan get access over the course of each year to a number of specific investment opportunities via email and the Internet in order to make their own decisions regarding whether or not to invest in any specific opportunity and if so, how much to invest.

We publish investment materials to our subscribers on the Internet via our secure web site, www.formational.com. This information comes directly from each company and may include an executive summary, complete business plan and/or company prospectus on the investment opportunity. Members can indicate their desire to participate or not and if so, how much to invest from their Formational account balances via our web site or by email.

But that's not all. Formational Ventures hosts a global web/teleconference between the CEO and other executives of each company and interested subscribing members. Using the Internet and a telephone conferencing service, entrepreneurs present their investment opportunity to our members around-the-world, and our members then ask a series of follow-up questions directly to management via the teleconference. These conferences generally last one hour to 90 minutes and typically begin at 4:00 P.M. Pacific time (USA) during a business weekday. Investors in Asia and Europe also participate with North American investors interactively in these conferences if they so choose.

We make a complete digital recording of each conference and we make available this recorded file to our members via our web site. Later, members can, at their own leisure, log-on and download the recorded conference file (via the Internet), listen to the presentation and follow-up questions while reviewing the presentation materials on their personal computer in order to make an informed investment decision.

Formational Venture subscribers open an account and keep investment funds "on-hand" at Formational Ventures at all times. Unlike many investment funds that require participants to commit substantial funds up-front, Formational enables its members to keep a portion of investment funds readily available at FV in order to move rapidly to invest in the next opportunity.

Members can send in additional funds to "back-fill" their account after an investment is made. Historically, our members have invested between 25,000 and 200,000 per deal, though the minimum investment in any specific opportunity is $10,000. Interested persons who seek to establish an account with Formational Ventures must be prepared to invest at least $25,000 over the course of each year. Subscribers can terminate their membership at any time. FV will return to them the balance of their account.

Account balance information and detailed information on each investment for each FV subscriber is available on-line at our web site. Members can log into to their secure account and review this information at any time.

Fees

Formational Venture members pay an annual subscription fee of $2,000 when they first open an account, and each year afterwards on the anniversary of their membership.

Members also keep funds "on-account" with Formational Ventures that includes money to be invested and any associated expense fees.

Members pay an expense fee at the time of any investment to offset the transaction-processing costs associated with identifying, publishing and creating an investment in each business. This expense fee is a percentage of the money being invested as follows:

u Investments between the minimum $10,000 up to $24,999; investors pay a 7.5% fee.

u Investments of between $25,000 up to $74,999; investors pay a 4% fee.

u Investments of $75,000 or more pay a 3% fee.

In this way, the more frequently a member invests, the more they would pay for the expenses of our service, though members receive a discounted investment fee benefit as they invest more in any specific opportunity.

Directed Investing

Fees