What does I-Bankers Direct do?
Simply put, we’ve created an online portal where accredited investors and growth companies can efficiently connect. Through this portal, registered accredited investors can browse investment opportunities in growth companies efficiently. Anytime — and from anywhere you can log-on — you can access company presentations and documents and actually invest. Correspondingly, our portal provides growth companies with the potential to efficiently connect with accredited investors.
What are the risks?
All investments have inherent risk, and just like any other investment, you could lose all or part of your investment, realize returns below your expectations, experience illiquidity issues or experience other adverse consequences.
You should seek professional advice before investing in companies found on this website. This website is only suitable, intended and available for accredited investors who are registered with this website and familiar with and willing to accept the high risk associated with private placement investments. Securities sold through private placements are not publicly traded and are intended for investors who do not require a liquid investment. Private placement investment opportunities available through this site are not subject to the same level of regulatory scrutiny as publically-traded companies, and, consequently, information upon which to make an informed investment decision may not be readily available. There can be no assurance that the valuation of the company issuing the securities is accurate or in agreement with industry or market valuations. In addition, investors may receive restricted stock which may be subject to holding period requirements. Companies that seek private placement investments are typically in early stages of development and have not yet been fully tested in the public marketplace. Private placement investments require high risk tolerance, low liquidity concerns, and long-term commitments, and investors must be able to afford to lose their entire investment.
What are the differences between equity and debt investments?
Companies seeking capital will either be looking to sell stock in their company or seeking to borrow money by issuing debt. As an equity investor you hope to realize an increase in the value of the investment made when the company increases in value due to growth, profits, market changes or other positive developments. As a debt investor you typically receive interest on the money loaned, but any increase in value of the company will not necessarily increase the value of your investment. In the case of a failing company, debt holders hold preference over equity holders and thus debt investments are commonly viewed as offering less risk than equity investments.
What is a registered broker-dealer?
A broker-dealer is an entity engaged in the business of effecting transactions in securities for the account of others or for its own account. It must be registered with the SEC and a member in good standing of FINRA. Please see http://www.sec.gov/divisions/marketreg/bdguide.htm for more details. I-Bankers Direct, LLC operates this site and is a registered broker-dealer and member FINRA/SIPC.
What is an accredited investor?
The SEC definition includes:
- 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;
- 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; or
- a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.
Please visit the SEC website for a complete definition at: http://www.sec.gov/answers/accred.htm.
How will I get my money back?
The companies in which you invest may achieve success or failure, and the value of your investment will likely go up or down accordingly. Your ability to resell your investment to realize gains or losses will depend on many factors and with each investment the documents provided will describe the procedure for resale of the investment. In some cases it may be through a resale to other accredited investors, a resale into public markets via a valid registration statement covering the securities, or an outright sale of the company. In addition, investors may receive restricted stock which may be subject to holding period requirements. Securities sold through private placements are not publicly traded and are intended for investors who do not require a liquid investment. You should never invest an amount exceeding your current financial loss tolerance. Private placement investments require high risk tolerance, low liquidity concerns, and long-term commitments, and investors must be able to afford to lose their entire investment.
You should seek professional advice before investing in companies found on this website. This website is only suitable, intended and available for accredited investors who are registered with this website and familiar with and willing to accept the high risk associated with private placement investments.
Who determines the terms of the offering?
I-Bankers Direct professionals will work with management to determine the most practical terms of the offering. Companies raising capital through our portal will have established the terms of the offering prior to being listed on the portal.
How will these investments affect my taxes?
The tax implications of securities investments can be complex. For this reason, we suggest that you consult with your tax advisor regarding such matters.
Will the company provide me with updates on progress?
Yes. I-Bankers Direct assigns an Investment Coordinator to every company we represent. Think of this person as a liaison between you and the company. We also require each company to commit to providing periodic reports and memoranda to investors.
Will I be able to speak with management of the company I wish to invest in?
Absolutely. In fact we recommend that you speak with management or listen to recorded presentations by the management of each company listed on this portal. These interactions are a useful tool for your analysis of each company prior to investing.
Where can I learn more about the JOBS Act?
Why can’t I see any offerings without first registering?
Currently we are offering securities only to accredited investors (as defined above by the SEC: http://www.sec.gov/answers/accred.htm).
Are there any fees or expenses for me as an investor?
No, there are no additional fees or expenses that apply when you invest in a company listed on this portal. You simply remit the funds for the investment you are making and that’s it. However, I-Bankers Direct does earn a success fee that is contingent on a closing, and there are legal expenses associated with the offering that are paid by each company. The banking fees and estimated legal expenses are disclosed in the offering documents.