Fixed
Investing
How It Works
Member
subscribers who choose the Fixed Investing Plan get access over the course of
each year to a number of specific investment opportunities as Formational
Ventures offers these potential investments to its subscribers.
Fixed-Investing subscribers decide up-front to invest a fixed-amount
into a sequence of ten (10) new opportunities.
This option is tailored for the member subscriber who is interested in
getting access to new ventures in Silicon Valley for the purposes of diversify
their investment portfolio.
If
they wish, Fixed-Plan subscribers may review the investment materials that we
regularly publish to our members 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.
Optionally,
Fixed-Plan subscribers may choose to participate in global web/teleconferences
between the CEO and other executives of each company and interested
Formational Ventures subscribers. 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.
Formational
Ventures Accounts
Formational
Venture subscribers open an account and keep investment funds
"on-hand" at Formational Ventures at all times.
Members
can send in additional funds to "back-fill" their account on an
on-going basis. Historically,
members investing on a Fixed-Plan have invested amounts of 25,000 50,000 or
100,000 per investment over a sequence of opportunities.
Interested persons who seek to establish a Fixed-Plan account with
Formational Ventures must be prepared to invest at least $100,000 over the
course of each year. Subscribers
can terminate their membership at any time and non-invested funds will be
returned.
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 their secure account and review this
information at any time and Fixed-Plan subscribers will receive mailed
transactional reports on a quarterly basis.
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 "on-account" with Formational Ventures funds that include
any associated investment expense fees that are charged to subscribers at the
time any investment is made. This
expense fee is used to offset the transaction-processing costs associated with
identifying, publishing and creating an investment in each business.
Fixed-Investment
Plans invest a constant portion into a sequence of opportunities as they arise.
Our four (4) Fixed-Investment Plans are listed below together with the
account balance required to open an account and cover the investment expense
fees.
u
1
$10,000 per 10 deals Account
activation balance of $109,500
u
2 $25,000 per 10
deals Account activation balance
of $262,000
u
3 $50,000 per 10
deals Account activation balance
of $522,000
u
4 $100,000 per 10
deals Account activation balance
of $1,032,000
Formational
Ventures members receive a discounted investment fee benefit as a
percentage of each investment as they invest more in any specific
opportunity. Fixed-Plan
subscribers will have indicated up-front their desire to invest and will
be automatically accepted in the investment as it becomes available.
Members can always contact Formational Ventures at any time in
order to alter their fixed-plan investment schedules for funds not-yet
invested.
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