Currently only accredited investors can invest through Bioverge. The SEC defines an accredited investor as anyone who: earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
Please refer to the SEC website for additional information here.
While Bioverge is initially only available to accredited investors, we anticipate offering investment opportunities to all investors (including non-accredited investors) under Regulation Crowdfunding very soon.
We encourage all investors to sign up and complete a profile indicating your areas of interest in order to keep updated on the latest news from Bioverge.
A Bioverge Fund is a special purpose entity that is formed for the specific purpose of investing in a startup. The purpose of a Bioverge Fund is to allow accredited investors to invest smaller amounts of capital into an individual startup, thus enabling investors to build a more diversified portfolio. We accomplish this by aggregating accredited investors into a Bioverge Fund, which then makes the investment into the startup.
Investors do not invest directly in the startup, but rather invest through a Bioverge Fund. All Bioverge Funds are managed by Bioverge Funds Management LLC., an except reporting advisor.
Investments in a Bioverge Fund are illiquid and cannot be easily sold. Investors earn a return when the startup achieves a liquidity event, such as the sale of the company or an IPO. When this occurs, investors receive their pro-rata share of the returns generated from the Bioverge Fund.
Investing in startup is risky, and most startups fail, meaning you should be prepared to lose all of your investment.
The only way to realize a return is when the startup has a liquidity event, such as an IPO or is acquired. The Bioverge Fund will then distribute each investor’s pro rata share of the profits (less the 15% carry charge by the fund).
We utilize the carried interest business model, and charge investors a flat 15% carry.
We also charge companies for the cost of establishing the investment fund once the minimum threshold for establishing the fund has been reached (typically $100,000). Importantly, this administrative fee can only be legally used to cover our direct fund costs, not taken as profit. Any leftover funds are returned to the startup.
Our Dynamic Diligence utilizes a decision-analysis model — derived from the OS Fund — to help determine the risk-adjusted return for novel science and technology-based investments. We combine this model with input from our network of scientific and technical experts, and professional investors to create a dynamic feedback loop, which we term 'Dynamic Diligence.'
All investment opportunities undergo this process prior to going live on our site.
The Investment Committee is tasked with answering the following questions: