It's easy to get started.
Starting point to get an unverified listing in the Sponsor directory.
Completed and acceptable background checks on all company principals
ALL ACTIVE DEAL MONITORING
Verified and monitored and greater levels of transparency
*A background check is not required in order to claim your Basic Profile but you will not appear as Verified until one is completed and accepted.
Claim your free profile, get verified later
No. Verivest does not promote any specific deal, does not pass judgment on any offering, and does not charge any fees to either investors or sponsors related to an investor’s participation in any offering or transaction. Verivest has a Directory of sponsor Profiles that investors can review, sort, compare, and contrast, but this Directory is focused on sponsors and companies, not on transactions.
Approved sponsors who are at minimum Verivest Verified may indicate that they have open offerings in a specific section of their sponsor Profile. However, Verivest does not promote any offering or transaction. Verivest also does not provide any legal advice about securities laws or regulatory issues that might impact your ability to indicate the existence of an open offering on the site. Please consult with your own counsel about those issues.
No. We do not charge any fees either as a percentage of capital raised or flat fees associated with any investments made. Zero.
A sponsor needs to apply to become Verified and pay the fees to have Verivest run a background check on all principals who own 20% or more of the operating company or own any percentage and are involved in the day-to-day management of the company. All principals must pass that background check to our minimum standards to become verified. All principals must also sign a pledge to abide by our Code of Conduct. To maintain Verivest Verified status, sponsor principals must submit to and pass an annual background check and annually recommit to the Code of Conduct, and the sponsor must continue paying the membership fee. Verified status is the minimum standard that a sponsor must meet to be an official member of the directory. There are many additional, more comprehensive steps you can take to strengthen your profile and provide greater transparency to investors. We strongly encourage investors to focus on sponsors who take the greatest possible steps to prove their claims, provide voluntary accountability, and demonstrate the highest standards of good governance possible.
No. Monitoring is a significant additional layer of good governance in which sponsors may choose to participate. Monitoring involves providing ongoing evidence to Verivest of a sponsor’s adherence to the terms of an investment’s operating agreement and other controlling documents.
Verivest provides a multitude of related services all designed to enable sponsors to have an independent third party watching, monitoring, verifying, and communicating those sponsors’ actions, behaviors, and actual performance to investors. We believe this significantly increases confidence from investors that sponsors are much less likely to be tempted by questionable practices when confronting difficult circumstances and thus to rip them off. These services include track record corroboration, verification of existence of assets, ongoing monitoring of individual deal entities for compliance with operating agreements, investor assists and onboarding, investor servicing including waterfall calculations and distributions, fund and syndication financial administration, financial statement preparation and distribution, investor portal technology, partnership tax return and K-1 preparation, and more.
One of the most compelling advantages to sponsors of Verivest’s combination of services it that it turns fixed overhead costs borne at your operating company level into variable costs that can instead be borne at the project level. Managing expensive personnel whose costs must be spread over an ever-fluctuating number of transactions is difficult even for larger shops and especially so for smaller sponsors. By engaging Verivest’s combination of middle and back office services, sponsors are able to provide institutional level quality to investors no matter the transaction volume without having to directly hire personnel at the operating company level and bear that significant cost. Our experience is that investors are more than happy to have these costs incurred at the project level in exchange for the peace of mind of knowing that there is third party oversight of an otherwise opaque investment.
There are multiple entry points for sponsors depending on your particular circumstances. Becoming Verified is table stakes for many investors so we recommend this step as a starting point for any sponsor. Verifying your track record and asset existence is another easy and inexpensive way to prove your veracity to investors. Then, depending on the extent of your personnel and expertise, monitoring and administrative services are very cost-effective and compelling ways to both demonstrate your commitment to good governance and at the same time lower your fixed costs. Please contact us to schedule a no obligation assessment of your situation to discuss options. As we always like to say, start anywhere and go everywhere.
Verivest is not registered with the SEC or any similar state agency, is not an investment advisor and does not offer investment advice. Verivest does not (and cannot) recommend any of the sponsors or investment opportunities referenced on this site. All private investments involve risk and uncertainty, including lower than projected returns and a complete risk of loss of invested capital. Investors should conduct thorough due diligence and consult with qualified legal and financial advisors before making any investment decisions.