What is Micro Venture Group?



 


What is Micro Venture Investing
"Micro Venture Investing" is the name given to a certain breed of financial transaction which occurs directly between individuals without the intermediation of a traditional financial institution. Micro Venture Investing allows individual investors to participate in funding startups in which they otherwise never would have the opportunity to participate.
 
Micro Venture Group combines  business coaching with investment from a group of investors who also act as business mentors, to enable an integrated safer investor experience, with the added opportunity for the investment team to participate meaningfully in the nurturing and growth of the business venture.
Why MVG for Micro Venture Funding ?
Small business start-ups, new business innovations and entrepreneurship are of critical importance to growth of the business community. With the ravages experienced by the retail investor community over the past 10 years, through poorly managed investor schemes and an equity broking community mesmerised by “transactions volumes” and providing little support to the process of business growth mentoring and innovation management, MVG is focussed on delivery of an integrated business mentoring / micro-lending platform for Australian business start-up ventures. 
 
The business concept is of critical importance as it fosters Australian innovation and business entrepreneurship without the “risk burden” falling on government incentives to fund small business start-ups. It also helps protect the interests of the supportive investor groups, because investment support is underpinned by MVG Business Coaching programs, and the active mentoring involvement of the investment team.
How is investing with MVG different to traditional investments in stocks ?
MVG Investors agree to become mentors to the business venture in which they are investing. This is an important distinction. Typically, investors are often left to watch the performance of a company from the sidelines. For many investors, this may be acceptable (whilst their investment is going well!). When this is not the case, as has typically occurred for many investors, the opportunities to make positive contributions to the venture are very limited.
 
MVG investor membership appeals to investor / sponsor groups seeking the risk mitigation of smaller investment parcels and the comfort of knowing that the investments are offered in combination with a mentoring support program designed to protect both investor / investee.
 
They do not idly wait on the sidelines for company dividends to be announced but are active participants/contributors to the success of the business venture. There is significant benefit when owners/entrepreneur relationships are forged with their MVG funding/support team, because all participate by contributing their passion and interest in the business’ success and who are willing to contribute actively.
Why Does MVG Investment Work So Effectively ?
Each member of the “investment consortia” is an individual or institution that has elected to support a specific business start-up because they have interest in the type of venture, expertise, contacts, and funding support.
How Is Investment Structured For Micro Venture Applicants ?
The terms and amounts of venture investment support range from $25,000 to $1,000,000. The investment details are defined and negotiated with each venture during the MVG Investor Funding Program and will typically be based around needs, growth prospects and overall investor appeal.
How Do MVG Venture Investors Exit From Their Investment ?
Each venture project is financially supported over a 36 month period (as a minimum) with investment funding structured into six 6 monthly investment traunches. Investor options at the completion of each traunch will involve either further investment support as per original agreements, conversion of allocated funding into equity, return of funds on commercial terms or investment swap with an alternative consortia member.
How Are The Investments Priced ?
MVG prices the investments at the time each participant venture completes the MVG Foundation program. The pricing is undertaken in accordance with market best practice and is vetted by an independant financial advisor.
Who Maintains Control of the Venture During The Investment Period ?
The venture founders and/or executive members of the venture retain control at all times during the period in which MVG business coaching and investor mentoring activities are in place.
 
MVG is committed to ensuring the committment, enthusiam and passion on the part of the directors of the specific venture retain control and are not dis-incentivised as a result of ineffective equity structures.
How can I assess the business if I wish to become an Investing Mentor?
Each venture includes a business profile and a prepared MVG investor disclosure brief that provides vetted information about the venture.
 
In addition, each venture has or is currently undertaking the MVG BUsiness Planning for Investment Program which acts as a coaching and a vetting process to ensure the venture complies with key investment criteria.
 
Finally, each venture is associated with an approved MVG Business Coach that you may contact and refer to with respect any questions you may have regarding the venture.
How do I engage in mentoring my Micro Venture?
You will be connected via a private MVG Inventing / Mentoring electronic web based forum that will link you, your fellow Investing / Mentors (who constitute your Mentoring Consortia), together with the chosen venture.
 
Each month you will receive performance updates and will be invited to provide feedback, ideas, contacts etc - In fact, anything that may be of assistance to the venture. The electronic conversations are private to the parties to the specific venture, Investing Mentors and the nominated MVG Business Coach.
Can I mentor over the internet from another location?
You may login via the MVG website at any time to see and converse with your selected venture parties.
What if I have questions about the way the micro venture is performing ?
You have the options of taking up the issues directly with the venture (by way of the electronic forum - Note: the forum is shared by your Investing / Mentor consortia members, therefore your concerns can be aired appropriately among all who have a common interest in the particular venture's performance.
 
In addition, you may discuss your issues with the MVG Business Coach, who will maintain an ongoing coaching role during the 36 month Investor / mentoring program.
How is  the investment organised ?
All investments are by way of converting loans made to the venture. These are structured into six phases over 36 months. The first phase is released for use by the venture when the nominated venture funding target has been fully subscribed to.
 
Phase 2 is released after 6 months, subject to performance criteria previously defined in the MVG Disclosure Profile.
 
Phase 3 is released after 12 months, again subject to performance criteria previously defined in the MVG Disclosure Profile, etc.
 
At the conclusion of the each phase, the venture will have the option of converting the investment loans released to that point into shares in the venture, on terms agreed upfront and documented in the MVG Disclosure Profile at commencement of the arrangement, or returning the funds at then agreed commercial rate.
Are All Investment Funds Made Available to the Micro Venture Immediately ?
No. Funds are progressively released on the basis of acceptable performance during the 36 month period.
What Assurance is Provided That the Micro Venture Is Meeting its Growth Plans ?
No guarantees can be made with respect to business / venture performance. However, the nature of the MVG program ensures that the participants each work as a team, with regular monthly performance monitoring, overlaid with business coaching, to ensure that all feel comfortable that everyone is working and contributing towards the success of the venture.
How and When Can I Get My Investment Returned ?
Each venture project is financially supported over a 36 month period (as a minimum) with investment funding structured into six, 6 monthly investment traunches. Investor options at the completion of each traunch will involve either further investment support as per original agreements, conversion of allocated funding into equity, return of funds on commercial terms or investment swap with an alternative consortia member.
 
 


What assistance can MVG provide a business seeking help?
Business coaching programs, both on-line and on-site are complemented by an investor "consortia" structured to provide a source of financial, networking, advisory and market feedback to assist the ongoing development and growth of the individual business venture.
What level of investment funding can MVG mentors facilitate?
Our mentors typically do not make large investments. However  mentor teams can provide a substantial investment block. In addition, they share an interest in the venture and a willingness to provide ideas, suggestions, contacts and encouragement together with modest financial support.
How Does The Arrangement Work For the Venture Company Seeking Funds?
MVG does not fund ventures directly. We are not a venture capital group, or Angel Investment company. We are a business coaching and training group, focused on business building.
How Does MVG Assist Ventures Seeking Funding Support?
MVG have a network of individuals and business groups who (like MVG) are keen to assist and mentor innovative businesses and venture programs succeed, particularly, in the often critical early stage of business establishment and growth.
 
MVG provides two critical ingredients to enable our investment consortia the confidence to support suitable ventures. (1) World class business coaching & (2) Ongoing mentoring linked to the investment arrangement negotiated.
 
MVG provides the world class business coaching from our group of experienced entrepreneurs and business leaders. Our investor consortia provide the mentoring. Why is this an innovative and powerful arrangement for the successful support and nurturing of business ventures?  It is arranged to ensure the interests of all parties (the venture, the investor, the business coach) are mutually supportive to minimizes risk of failure.
 
What Are The Steps for Investment Support.
  1. Pre-assessment -  Filling out the pre-assessment questionnaire and/or sending through preliminary business or venture information will allow MVG to pre-qualify your suitability for investment support by our investing consortia. This is undertaken at no charge, and is simply designed to ensure that time and effort expended at this early stage is warranted, for all parties concerned. If we feel the venture is suitable (for investment support from our consortia), we will let you know and invite you to take the next step.
 
  1. Registration into the MVG Investor program - This is a business coaching and investor ready program that takes your venture through all the critical issues and processes BEFORE your venture is presented for investment support.
 
  1. The program involves  completion of detailed assessment, progressive review and refinement of the companies business plans, financials, marketing strategies and completion of an investor ready MVG MicroPlan which will for a component of the necessary disclosure materials required by the investor consortia.
 
The process will address the issues of Investment structure, forcasting, valuation planning, reviews by independant legal & accounting & experts in relation to the business. In addition, during the program, efforts are made to link the right coach, investment consortia to the venture so that the right synergies are in place by the completion of the MVG Investor program.
 
  1. Once the program has been satisfactorally completed, MVG investor presentations and meetings take place, facilitated by MVG to finalise the investment arrangements.
 
  1. When the full investment amounts have been committed to by the consortia, the process of ongoing mentoring, feedback reviews and gradual disbursements of funds from investors to venture proceeds, under the ongoing facilitation of the MVG business coach, proceeds.
 
  1. Normally, MVG Investing Mentor programs run for 36 months, with investment disbursements (ie: release of investment amounts to the venture) occuring every 6 months.
Does MVG receive a commission for facilitating the investment amounts?
The venture company only pays coaching fees in accordance with MVG's business coaching fee structure (see Apply On-line).
 
MVG's Investing Mentors pay MVG a set fee during the 36 month investment facilitation period based on a proportion of investment and nature of the venture program. Typically, this proportion is approximately between 6% - 8% of investment amounts.
 
Importantly, the MVG fee is paid progressively and is performance based. Ie: it is contingient on the venture meeting its performance targets as defined in the MVG program, and the venture progressively receiving its staged investment traunches. This arrangement is in contrast to typical investment commissions which are normally paid up immediately irrespective of the subsequent performance of the investment.
 
 

 
 
 

 
 
 
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