Formational Ventures - About Us: General Info

Formational Ventures creates a limited partnership and aggregates the collective investment funds from all of its subscribers that chose to invest in any specific opportunity. Investor’s funds are used to purchase a portion of a limited partnership. Each limited partnership is managed by Formational Ventures, LLC and these partnerships purchase shares of preferred stock of each company. In some instances, a limited partnership may holds a note of debt associated with a financing bridge loan to a business that is typically converted to shares with additional warrants at a later time, upon a subsequent financing by the company. Formational publishes specific information regarding each investment to each of its subscribers before any investment is executed.

Formational provides detailed transaction information to each of its members. This information, always available via our web site, includes investment information of the partnership to which they belong.

The limited partnership typically holds shares of stock (or a note) until a "liquidity event" occurs. This is typically 180 days after a company has offered it shares to the public (e.g. becomes listed on NASDAQ, NYSE, etc.) or until a public company has purchase the private company's shares, whereby its shares are converted to publicly traded shares and therefore become an asset that can be sold.

Our goal is to distribute the shares to each investor in a limited partnership as soon as possible after the time that these shares become “liquid.” The costs of the investment limited partnership, the legal, accounting and management costs of this partnership are paid for by Formational Ventures, LLC.

At the dissolution of a limited partnership, limited partner investors are provided with shares in the company in proportion to their ownership percentage of the partnership. Formational values these shares (per the market) in U.S. dollars and a portion of these shares are sold in order to pay for the dissolution of the partnership. Investors then received their original investment (in shares) and then receive additional shares in the amount of 85% of any net gains above their original investment. Formational Ventures, LLC, receives 15% of the shares associated with any net gain. This is very attractive for our member investors compared with the fees charged by traditional venture capital fund managers (typically 20% to 30% of any gains).

Investors should remember that investing in private companies represents an "illiquid" investment whereby the investment cannot be resold to others until it is later converted to a publicly traded asset.

As always there is a clear risk/reward tradeoff to these investments. The potential sizable gains received from investing during the early stages of a high-growth company come with increased risks. Private companies may or may not become public. Investing in private companies is subject to investment risk, including the possible loss of principal.

Investors might be wise to invest in multiple companies in order to mitigate poor performance or the loss of any one specific investment with exceptional returns from another. All Formational Venture member subscribers ultimately decide for themselves how they wish to invest their money. Formational only acts as an information conduit that supplies investment information and infrastructure to its members in order to help them access new opportunities. Each of our member subscribers is ultimately responsible for their investment decisions.

Formational Ventures members around the world now have the ability to utilize our service to access high-growth investment opportunities in order to create a diversified portion of their investment portfolio in pre-IPO companies.