Each offers a venue for investment in this alternative asset class, but they differ greatly in terms of stage, level and focus. nvestx melds some of the best practices of each and offers a solution to a different segment of the investment community not currently well served.
nvestx investors do not have time to sort through thousands of business plans, so crowd funding is out. nvestx investors do not necessarily have a connection to an established “angel group,” or local groups may be closed to new members. Venture capital is for considerably larger investments at later stages, and it is typically closed to most individuals.
nvestx offers a novel approach to those seeking to join an investment group by allowing them to collaborate on deals with others in and around their community, as well as further afield. The requirement for entry as a “member investor” in nvestx is that the member must be accredited” as defined by Rule 501 Reg D (see below) in addition to having the desire to invest and understanding the associated risk.