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Venture Firm (Fund Manager's) 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 for Venture Firms (fund managers) are $10,000, paid once annually. This fee enables FV Venture Affiliates to receive confidential business plan information and/or private placement memorandum information associated with a number of new, early-stage companies.Investments are made at the sole discretion of the individual Venture affiliate using this information. Venture Affiliates can decide to invest in certain companies and to not invest in other opportunities. This means that fund managers have direct control and decision makings as to whether or not to make an investment in any particular company. Venture firm managers can also invest more in one deal compared with other deals. FV Venture Affiliate investors can make direct investments in companies and own stock in these companies directly. The minimum level of investment is $100,000. Venture Affiliates agree to pay Formational Ventures a 30% investment fee at the time they make an investment in a Formational Venture deal. As an example, a $100,000 investment made by an affiliated investor requires that investor to pay Formational Ventures $30,000. A $200,000 investment by the same member on a subsequent deal obligates the member to pay Formational Ventures $60,000. These investment costs are used by Formational Ventures to purchase some shares in the company as well, to pay corporate taxes on this fee and to help run Formational's operations. Venture Affiliates keep investment funds "on account" at Formational Ventures. This money on account is the investor's money and can be returned to the affiliate venture firm 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 venture affiliates. To sign up, interested venture affiliates should expect to transfer a minimum of $140,000 to Formational Ventures. This includes $10,000 as an annual registration fee, and $130,000. At the time an investment is made, $100,000 (or the available pro-rata) will be used to invest in a directly in company on behalf of the venture company and $30,000 will be paid to Formational Ventures. Member investors may then chose to "top up" their accounts to the ongoing minimum level, of $130,000. Note: Venture Affiliates 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. |
