What is iSelect Fund?

The iSelect Fund enables investors the ability to invest in professionally screened startup, early-stage and mezzanine venture opportunities online with investment sizes typically ranging from $35K to $250K. Investors can screen companies, review and execute legal documents and monitor their portfolio companies directly via the iSelect website. iSelect manages the funds and provides benefits to "the selected" companies.

Can anyone invest in iSelect?

Presently, only "accredited" investors are able to invest in iSelect. The current definition of an accredited investor is ether; "a natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person", or, "... a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year."

All potential investors will need to complete an investor qualification questionnaire, which will be part of the legal documents, which need to be signed, before any investment request is accepted.

What are the benefits of investing in iSelect?

We believe that there are five compelling reasons for investors to invest private venture opportunities via the iSelect platform:

1. Local investing contributes to your region's economic activity and job creation;
2. A rigid screening process by the area's most prominent venture investors ensures best due diligence practices;
3. A single platform providing access to the best, brightest and most promising companies;
4. The low investment minimums reduce the barrier to entry that have historically restricted investor access to private venture investing - allowing you to make a broader range of investments and effectively diversify your holdings; and
5. The platform's online features enable ongoing monitoring and reporting of your investment.

How many companies may I invest in?

Within iSelect, you may invest in as many companies as you wish as long as the $5,000 minimum investment threshold is met for each portfolio company.

May I invest in only one company?

Yes. However, one of the unique features of iSelect is the ability to create a diversified portfolio of compelling early-stage investments that have each undergone an extensive due diligence, evaluation and review process by seasoned venture investors. Moreover, all of the long-term research and performance data on venture and early-stage investing suggests that investors who enjoy a broader and more diversified exposure to venture capital are more likely to experience the compelling long-term performance returns of the asset class.

Why do companies participate on the iSelect platform?

iSelect was founded by startup attorneys and venture investors that recognize that executive teams of startup and early-stage companies consistently spend too much of their time fundraising as opposed to executing their business plan. iSelect was conceived to enable companies to raise capital efficiently.

What other investment risks are involved?

There are many risks associated with private venture investing, including due diligence risk, underwriting risks, business valuation risk, business plan execution risks, etc. While the unique structure of the iSelect Fund seeks to reduce many of those risks, they remain systemic to private venture investing and cannot be eliminated.

How are the iSelect companies chosen?

Most companies are brought to the attention of iSelect through our extensive network of civic partners, venture capital firms, incubators, accelerators, angel investors and entrepreneurs. Only a fraction of the companies that apply to iSelect end up being chosen for the platform. Our vetting committee reviews due diligence and screens potential investment opportunities.

How do I profit from my investment in iSelect?

The return on your capital investment in iSelect is directly related to performance of the underlying companies that you choose to invest in. The rate of investment return in your iSelect portfolio will be directly relating to the results of the number and size of "liquidity events" that occur with respect to your selected companies. Liquidity events can include: being the target of an acquisition, merger, an initial public offering (IPO) and other forms of capital distributions to stakeholders.

Is there any one critical due diligence criteria in the selection process?

The investment managers of the iSelect Fund believe that the founders, executive team, management team and advisor of the portfolio companies are the most important asset. Their collective entrepreneurial and business experiences, domain expertise, work ethic, desire to succeed and professional networks are ultimately critical to the success of each venture. We believe that above all, the people involved are the most important criteria when evaluating a private venture investment opportunity.