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Frequently Asked Questions
Please help us, If you have a question that is not answered on IDE's FAQ page, feel free to ask your question be emailing us at inquire@investordataexchange.com
Q "What is a venture capital investment club?"
A It is an association of like-minded venture capital investors that combine their resources to discover, scrutinize and participate in "Private Placement" investments.
Q "What is a placement investment?"
A Private placement investments are early stage investments in emerging companies will, hopefully, become successful large companies. Private placement investments typically are not publicly traded on any stock market.
Q "Why is IDE networking individual investors?"
A Working together with other investors gives us group power to discover more opportunities and know more about the viability of them.
Q "Does IDE know what might work, what might be a scam?"
A We don't. No one can guarantee results in the financial or business field. While IDE can't guarantee it will always be correct in it's assessment, to date, IDE has never been wrong.
Q "How does the IDE staff profit?"
A By design the IDE staff only profit when and if IDE members profit. IDE's administration office is typically compensated with 5% of the backend profits on every successful investment. This keeps our staff financially motivated to single out only those investments that have the highest probability of successes.
Q "Does IDE impose dollar minimums on club investments?"
A No, each member is free to participate in any amount they choose or not to participate at all.
Q "What kind of services will I receive as a member?"
A You will receive a risk analysis of every private placement that you and other members uncover. These examinations are conducted by skilled personal that compare all investment structures to a set of guidelines.
Q "How does IDE check out private placement opportunities?"
A We follow a criteria list to determine if the investment terms are fair to the investor. We then do a background check on key personal of the investment. Due-diligents also includes a visit, usually several, to the company. If the IDE investigation discovers an uncorrectable weakness, a report is made directly to the inquiring IDE member, and distributed to the whole membership.
Q "Why do so many private placements seem to fail?"
A Most private placement investments are in start-up businesses. About 70% to 80% of the legitimate business efforts are going to fail. But beyond that risk, when it comes to promoted investments (the ones you see on the net, or get called on) about 50% are outright scams, another 40% are 'other peoples money' investments where you take the risk and they get the reward. About another 9% are honest, but inexperienced people you shouldn't entrust with your money. Finding the scams is the easy part. After being a member for a year you can probably do it yourself. It's finding the good ones that is the trick. This takes a lot of work.
Q "How long does it take IDE to review an investment?"
A Approximately 90% of all investigations fail the basic evaluation within the first two weeks. The remaining 10% take anywhere from two months to a year. Less than 2% of all the private placements reviewed for our members pass the club's criteria. The longer it takes IDE to investigate an investment, the higher the probability of finding an excellent opportunity.
Q "Do members ever get together and buy investments?"
A Yes, when IDE come across an investment that passes the clubs criteria and there are enough members that want to buy, IDE helps members form an investment-buying group to purchase the investment.
Q "If I join, do I have to participate in the opportunities IDE offers?"
A No, IDE is not an investment advisor and will not tell you how to invest your money. IDE is an informational resource composed of hundreds of individual investors, like you, working toward a common goal of discovering venture capital opportunities.
Q "Do members receive group discounts on investments?"
A Unlike investors working with just their money, IDE members pool their funds to create an economic force that can fund a complete project. This gives us group-buying power to both assert a discount and empower the group to negotiate our own terms.
Q "What does IDE charge to review potential investments?"
A Nothing: Approximately 98% of all submitted investments fail.
Q "Is there any additional cost to members when they invest in a club discovery?"
A The expenses of organizing IDE members into buying groups along with the expenses of hiring outside professional help such as attorneys, accountants and securities experts are passed on to investing members. However, the cost cannot exceed 15%, and must be recaptured though the increase in returns negotiated with our group buying power. NOTE: The largest club investment, to date, had no front-end expenses.
Q "What you say makes sense, so why havent I heard about this before now?"
A If you can figure that out, please let us know. Most brokers lack a financial commitment to the success of the companies they recommend to their clients. This is because they are paid up front. Granted, what IDE does is not easy, but it can be done by anyone who's willing to work hard, and understands he is working for the investor. While IDE is a group effort, every group is made up of individuals. We try never to forget that.
Q "What kind of information will I receive when I join?"
A You will receive IDEs welcome aboard package that includes:
- All of IDEs previously analyzed investment.
- Samples of past monthly newsletters.
- A synopsis of current club opportunities.
Q "All this sounds interesting, but what's it going to cost me?"
A Each member pays annual dues of $295.
Q "Is there a money back guarantee?"
A Yes, IDE want all members to be satisfied with their membership and offers a money back guarantee in the first year of membership.
Q "How Do I Join?"
A There are four different Membership Applications and two ways to join.
- Join by credit card. Fill out and fax your application to us. (IDE’s fax number is on all applications.)
- Join by check. Fill out and snail-mail your application to us. (IDE’s mailing address is on all applications.)
BEFORE YOU INVEST IN A HIGH YIELD GROUND FLOOR COMPANY,
Pre-IPO, Direct Public Offering (DPO), Limited Liability Partnership (LLP), Limited Liability Corporation (LLC), Seed Money Investment, Bridge Loan, Mezzanine Financing, Private Stock, Secured and/or Collateralized Loan.
INVESTIGATE THE FUNDAMENTALS BY JOINING
Investor Data Exchange, Inc.
22865 Lake Forest Dr.
Lake Forest, CA 92630
(888) 339-7407
inquire@investordataexchange.com
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