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Individual Investor RegistrationMemberships are subscriptions to FV's information network. The membership fee (subscription fee) is not an investment in any particular company. Subscriptions are for periods of 12 months. Members may renew their memberships via a new subscription once each year. Membership subscription costs are paid annually. This fee enables FV members to receive confidential business plan information and/or private placement memorandum information associated with a number of new, privately held, early-stage companies.Investments are made at the sole discretion of the individual member using this information. Members can decide to invest in certain companies and to not invest in other opportunities. This is very different from a traditional venture "fund", as FV members can make specific investment decisions on a deal-by-deal basis. FV members can also invest more in one deal compared with other deals. FV Membership investments in companies are made from a minimum of $10,000. Member investors can decide to invest more than $10,000 in a specific deal by indicating an amount $50,000, $75,000, $100,000, etc directly on the private members bid page. Member Investors pay Formational Ventures a variable investment fee, 3% - 7.5% depending on level of investment, at the time an investment is made for them on their behalf - and per their specific instructions of the member investors. As an example, a $25,000 investment made by a member investor requires that investor to pay Formational Ventures $1,000. A $100,000 investment by the same member on a subsequent deal obligates the member to pay Formational Ventures $4,000. These investment costs support Formational Ventures' operations. Members keep investment funds "on account" at Formational Ventures. This money on account is the investor's money and can be returned to the member investor at any time - before they have instructed FV to make an investment for them. Note: Interest from these funds "on account" is not paid to members. To sign up, interested members should expect to transfer a minimum of $26,000 to Formational Ventures. Which does not include the annual registration fee. At the time an investment is made, $25,000 will be used to invest in a company via a limited partnership and $1,000 will be paid to Formational Ventures. Member investors may then chose to "top up" their accounts to the ongoing minimum level, of $26,000. Note: Members may also decide to keep more than the minimum on account as this provides a number of benefits and enables them to make larger investments. The levels could be $52,000, $78,000, $104,000. |
