Frequently Asked Questions

FAQ

FAQ

  • We see ourselves doing about 40 deals over the course of Fund I. As we noted in our fund strategy, we like to work close with companies to provide them other relevant resources post-investment and *if applicable, additional capital (must meet reinvestment criteria).

  • While we are an industry-agonistic fund, we have intentionally built industry-specific screening into our evaluation and due diligence processes. Our investments so far represent eight unique and differentiated verticals for maximum diversification and impact.

  • As with other professionally managed funds, The BFM Fund has a team of General Partners/Managing Directors who oversee the operations of the fund and make investment decisions. We routinely pull from the expertise of our Limited Partner/investor base to help facilitate industry-specific deal screening. We also pull from our Limited Partner/investor base for company advisor and board member opportunities.

  • We generally invest between the Series Seed and Series A round.

  • Venture investing is a high-risk, high-reward environment where returns can take 5-10 years to pay out. The primary way that any equity-focused venture fund gets a pay out is through a liquidation event. Broadly speaking, this is when a portfolio investment either gets acquired or goes public through IPO.

  • The investment period for The BFM Fund I is 2020-2025.

    On average, the Investment Period is the most active period in a fund's life. During this time the GP is sourcing and evaluating potential investments, conducting business and valuation due diligence, negotiating term sheets, and closing deals.

  • The life cycle of Fund I is from 2020 to 2030 with two 1-yr extensions.

    PLEASE NOTE: The life cycle of a typical private equity fund is usually ten years, but that ten years generally doesn't start until the team raises substantial capital and it doesn't end until all assets are sold. So, the life cycle of a private equity fund may stretch to as long as 15 years.

  • Venture Backable is where an institutional investor (investing other people's money) can get a 10X-100X return on their investment. Other investors may look for smaller returns, but in general VC's are looking for the potential for outsized returns.

    Funding from VCs sounds great because it solves your near-term problems. But do you really want to grow into a $1 billion+ company? Be honest - once you take that money you’re signed up for the $1 billion + ride. And if that’s not what you want then we can almost guarantee you that the money won’t be worth it. There is nothing wrong with building a business that doesn’t scale to VC-level outcomes. In fact – We’d argue that non-VC businesses are just as critical if not more critical to the economy.

  • This application will take 15 to 20 minutes, require you to upload your pitch deck and provide financial projections for the next 5 years.

    If you're not ready to apply, or if you have questions, please reach out to us at founders@bfm.fund

  • Please always refer to the SEC website and consult your counsel for the most up to date definition of being an accredited investor and if you meet this criteria.

    Financial Criteria

    Net worth over $1 million, excluding primary residence (individually or with spouse or partner)

    Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year

    Professional Criteria

    Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82)

    Directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company)

    Any “family client” of a “family office” that qualifies as an accredited investor

    For investments in a private fund, “knowledgeable employees” of the fund

    (Please speak with your accountant or counsel for more information on this).

  • When you invest in a professionally-managed fund, your money is collectively pooled together with other Limited Partners/investors to make up the full fund. Seasoned professionals that have extensive experience in the Venture Capital investment space are designated the Managing Directors of the Fund, and will perform all day-to-day operations including sourcing, screening, and managing portfolio investments. For most venture funds, your investment is split evenly across all investments that the Fund makes*. When a fund makes an investment into a company, the fund subsequently own a percentage of their company. When you invest into that fund, you own a percentage of the fund, and therefore a pro-rata share of the companies that fund invests in.

    *An exception to this might be if there is an acquisition prior to your investment and that has already paid out and is no longer a company of the Fund.

  • Different funds have the ability to invest and invite investors from local or global regions. Please contact us for more information.

  • We see ourselves doing about 40 deals over the course of Fund I. As we noted in our fund strategy, we work extremely close with each of these companies and give them additional capital and resources post-investment.

  • As with other professionally managed funds, The BFM Fund has a team of General Partners/Managing Directors who oversee the operations of the fund and make investment decisions. We routinely pull from the expertise of our Limited Partner/investor base to help facilitate industry-specific deal screening. We also pull from our Limited Partner/investor base for company advisor and board member opportunities.

  • We generally invest between the Series Seed and Series A round.

  • Venture investing is a high-risk, high-reward environment where returns can take 5-10 years to pay out. The primary way that any equity-focused venture fund gets a pay out is through a liquidation event. Broadly speaking, this is when a portfolio investment either gets acquired or goes public through IPO.

    Please consult your counsel on more specifics around the risks of venture investing.

  • This are a variety of ways to invest into a venture fund. Please contact us for more information on various investment instruments.

  • We love warm introductions! Please be sure to connect with us through the Contact Form to schedule some time for a chat.