Frequently Asked Questions

Who can invest through Bioverge?

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.

What is a Bioverge Fund?

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.

How do I sell my investment?

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.

How do I earn a return?

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).

What fees do you charge?

We utilize the carried interest business model and charge investors a 15-20% carry on successful exits.

We also charge an administrative fee for the cost of establishing the investment fund once the minimum threshold for establishing the fund has been reached. 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 investors.

How do you select which startups to list?

Startups must apply to be listed. Please refer to the Learn More page for a detailed overview of our selection process.

What is Dynamic Diligence?

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.

What is the role of the Investment Committee?

The Investment Committee is tasked with answering the following questions:

  1. Does the third party investment sufficiently serve to validate the technology?
  2. Do the Dynamic Diligence findings provide sufficient support to justify an investment (i.e. is the risk / reward profile attractive)?
  3. Are the financial terms proposed by the lead investor reasonable and potentially attractive to our members (i.e. type of offering, pre-money valuation, valuation cap, discount, etc.)?
  4. What are the key risks associated with the offering?