BaMedFounder

Equity-based Crowdfunding : Project Owner FAQ

What is an equity investment?

In countries where equity distribution through equity-based crowdfunding is allowed, because of the difficulties in calculating and registering small contributions for equity allocations, the minimum equity investment through B-a-MedFounder is USD 5,000. For this the project owner needs to have a registered company for raising money and be able to provide equity.

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How can I join the B-a-MedFounder community as an individual inventor or entrepreneur?

There are no registration fees for becoming a member of the B-a-MedFounder community unless you propose a project, look for funding and exceed your minimum funding threshold during the project active funding period. Project owners that successfully raise funding through our platform will be requested to pay regressive success fees as further explained in the Project Owner FAQ.

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What do I need to do to initiate the project submission process with B-a-MedFounder?

Before submitting your project to B-a-MedFounder, please read carefully, once again, the Terms of Use. The Terms of Use are the same for everybody and are non-negotiable. After agreeing with all the Terms of Use, and by strictly following the steps described in the “Step-by-Step Guide” section, then you can prepare all the necessary documents and submit them to us.

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How can I obtain funds for my idea on a new medical device project through B-a-MedFounder?
  • By sending your new medical device idea to B-a-MedFounder, you can gain access to a huge pool of investors and companies who are all looking for new and great medical device ideas.
  • If you are offering equity as incentive, calculate in as much as a realistic way a theoretical valuation of your idea/your start-up company and the amount of funds you will need for the target you wish to reach with such funds. Add to this amount approximately 25 percent as an error margin (in case your initial funding target will not be fully funded). Also add the B-a-MedFounder and MangoPay transaction fees that will be deducted from the funds raised. For example, if you calculate that your project requires USD 96,000, you may set your initial funding target at around USD 120,000, allowing you to receive about USD 109,200 after the B-a-MedFounder fees (6.5 percent) and MangoPay transaction fees (approx. 2.5 percent) are deducted.
  • After the successful funding of your project, prepare yourself for the next round, for growth funding.

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How do I start my project submission process?
  1. If you think that your idea is patentable, visit the relevant U.S. or European patent websites (USPTO.gov or EPO.org) and search for issued or published patents in the same subject as your idea. Alternatively, a more thorough patent search may be conducted by a patent attorney but such an option will have an extra cost.
  2. If you are not sure that your idea is patentable, in order to prevent your idea becoming public and losing your chances to patent it, apply for a provisional patent application before submitting it to B-a-MedFounder. (There are several websites that describe how to prepare a patent application and where to send it to). You may alternatively choose to apply for a patent using the services of a patent attorney at an extra cost.
  3. Before submitting your idea to us, please carefully read, once again, the Terms of Use and contact us regarding the legal aspects of your propsoed equity-based crowdfunding campaign. If your start-up company is incorporated in Israel then our legal partner will assist you prepare your your start-up company for equity-based crowdfunding and draft a standardized and binding Term-Sheet in accordance with the local laws. The standardized and binding Term-Sheet will need to be submitted to B-a-MedFounder during the project submission phase and will be displayed on your project page throughout the active funding period. In case your project raises funds above its minimum funding threshold, then all investors will be asked to sign the standardized and binding Term-Sheet and provide their IDs as required for closing. All other necessary forms (namely the Project Owner Form and the Third-Party Authorization Form) should be signed and submitted to us in PDF format as well during the project submission phase.
  4. The best way to present your project in the B-a-MedFounder virtual showroom is summarizing it with a three-minute video clip or provide a 10 slide PowerPoint presentation for review and evaluation. People would like to see your face, or at the very least, they’d like to hear your voice. Prepare whatever visual material you wish to include in the video clip and the text of your narration for the clip or the slide presentation to fit the limited time you have. Video clips longer than three minutes or slide presentations larger than 10 slides will not be considered for evaluation. When presenting your idea, do not include too many details and do not disclose the specifics of the invention. However, do your best to make your presentation convincing and attractive.
  5. Do not forget to indicate the amount of funds that you are aiming to raise and remember to give an explanation about where these funds will bring your project within twelve months from receiving them. Nobody gives away money without knowing where the money will be spent.
  6. You will also need to create a MangoPay e-wallet for your project using your bank account’s IBAN number through our platform before you can submit your project to us. The MangoPay e-wallet will be used to store all of the pledges made to your project.
  7. When you pass the evaluation phase, your video clip or slide presentation will be put on B-a-MedFounder virtual showroom to encourage the crowd to fund it.
  8. If your project attracts investors and is seeded with enough funds, you receive the funds and can commence with or continue developing your project.

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In which currencies can I request funding?

Project owners are asked to indicate their funding currency preference (U.S. Dollars is currently the only option in equity-based projects) when they submit their projects; such projects will be open for pledges from all countries except those that either have limitations on equity-based crowdfunding or restrictions regarding the use of MangoPay’s payment services.

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How does the B-a-MedFounder system work in projects offering equity?

Each registered start-up company with a project offering equity for raising funds through B-a-MedFounder shall have an initial funding target (i.e. USD 120,000), a final funding target (i.e. USD 180,000) as well as a minimum funding threshold (75% of the initial funding target - i.e. USD 90,000). The initial funding target represents the amount of funds that is initially needed by the project owner to start or develop further the proposed project. The minimum funding threshold represents the minimum level of funding that a project needs to achieve for starting the project, until further funds will be available. The final funding target, on the other hand, represents the maximum amount of funds that a project owner is willing to raise assuming that there will be sufficient level of demand for a project’s funding round. (Please note that all numbers are before the B-a-MedFounder success fees and MangoPay transaction fees are deducted from the funds raised.)

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How do I determine my project’s funding target(s)?

Calculate in as much as a realistic way a theoretical valuation of your idea/your startup and the amount of funds you will need for the target you wish to reach with such funds. Add to this amount approximately 25 percent as an error margin (in case your initial funding target will not be fully funded). Also add the B-a-MedFounder and MangoPay transaction fees that will be deducted from the funds raised. For example, if your project requires USD 96,000, you may set your initial funding target at around USD 120,000, allowing you to receive about USD 109,200 after the B-a-MedFounder fees (6.5 percent) and MangoPay (approx. 2.5 percent) transaction fees are deducted. The final funding target that is applicable in projects offering equity as incentive, represents the maximum amount of funds that the project owner is willing to raise assuming that there will be sufficient level of intrest in a project’s funding round.

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Can I change the funding target(s) later on?

This is not allowed. Once your project is displayed in the B-a-MedFounder virtual showroom, you cannot change your project’s funding target(s). We strongly recommend that you make realistic calculations and think hard about your project’s funding target(s) before you submit your project.

Although we do not recommend you to do this, you can decide to retrieve your project and start the entire project submission process from the beginning with a new funding target(s). This approach costs time and money, since a few months are required to process the renewed application. This is a risky process, because your project may not receive the initial recommendations it received from the new reviewers (experts).

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Who conducts the valuation of my project?

You as the project owner should do it. In the early stages of your project this is a difficult thing to do. Your project does not have a track record. It has no revenues. There are assumptions on the demand for your product and its market acceptance is not known. Do not fall into the trap of calculating the valuation by making projections based on unrealistic expectations. Do not forget that the valuation of an early project in most cases depends on your background, your experience and your ability to perform.

In all projects offering equity as incentive, all the investors and you will have to sign a standardized, non-negotiable and binding term-sheet.

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How is the valuation of a start-up company used in projects offering equity?

In projects offering equity as incentive, the pre-money valuation of a start-up company will be determined by the project owner at the outset. This pre-money valuation will then be used with the project’s initial funding target and final funding target to calculate the range of equity ownership by new investors.

For example, if the pre-money valuation of a project is determined as USD 1,200,000 and the initial funding target and the final funding target are indicated as USD 120,000 and USD 280,000, respectively then the percentage of equity to be offered shall be calculated as:

(USD 120,000 x 75% = USD 90,000); (USD 90,000 / (USD 90,000 + USD 1,200,000) = 7.0%

(USD 280,000 / (USD 280,000 + USD 1,200,000 = 18.9%

So the range of equity offering will be 7.0% - 18.9%

In cases where a project raises any other amount less than its final funding target (i.e. USD 126,080) then the percentage of total equity to be offered is calculated as:

USD 126,080 / (USD 1,200,000 + USD 126,080) = 9.5%

Funds Raised / (Pre-Money Valuation + Funds Raised) = % of Equity Offered

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Do I have to make a video clip?

Not necessarily. You can create a 10 slide PowerPoint narrated presentation. However, we do recommend that you use a three minute video clip for your project. Donors would like to see the person behind the project they are supporting. This gives a personal touch to your project.

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How can I upload a video clip for my project?

In order to upload a video clip for your project, please visit Youtube.com, click the “Upload” button in the upper-right corner, and upload your video file. You will then enter the video clip’s title and description information, setup your privacy preference as “public,” and then you’ll also choose a category for your video clip. Once this process is complete, you will be provided with a Youtube link, which you can use with the relevant input area on the B-a-MedFounder website.

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How can I upload a PowerPoint presentation for my project?

In order to upload a PowerPoint presentation (preferably with narration) for your project, we ask that you visit the website: Slideshare.com and subscribe to the “Silver Package” by making a monthly payment. Once you subscribe to the service, click the “Upload” button at the top of the page, and click the blue “Upload” button next to locate and upload your PowerPoint presentation on to the system. You will then need to enter a title, tags, a category and a short description for your PowerPoint presentation, uncheck the “Allow file download” option, choose “[Public] Everyone” from the “Privacy (who can see this)” dropdown menu, and click “Save details”. You can now copy by double clicking the embed code that Slideshare has generated and paste only the http address stated in quotations (as shown below) on to the “Project PPT presentation” input area on our website.

"http://www.slideshare.net/slideshow/embed_code/1766235"

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How will I know that my presentation is convincing enough to attract investors?

Try to be as neutral as you can and watch your presentation several times. If you were an investor, would you invest in this project?

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Do investors and project owners have to use MangoPay?

Yes. Investors are required to use either a Visa or Mastercard credit card to make a contribution to a project via MangoPay. Project owners are also required to have MangoPay e-wallets (bank account IBAN number of the project owner needed) in order to receive funds after the successful completion of a project’s funding. B-a-MedFounder has an arrangement with MangoPay for the receipt and administration of pledges during a project’s funding period, as well as the disbursement of such pledges to the project owners at closing, assuming that the project reaches or exceeds its minimum funding threshold.

Project owners are asked to indicate their funding currency preference (U.S. Dollars is the only option for equity-crowdfunding currently) when they submit their projects; such projects will be open for pledges from all countries except those that limit equity-based crowdfunding or have restrictions regarding the use of MangoPay’s payment services.

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What are MangoPay related and other restrictions?

Project owners from certain countries may not be able to use our services. Due to legal and other MangoPay related restrictions, the following countries are not currently serviced by B-a-MedFounder: Bolivia, Ethiopia, Myanmar, Nigeria, Sao Tome & Principe, Sri Lanka, Algeria, Cuba, Iran, Libya, North Korea, Sudan, Syria, Singapore, Taiwan, Malaysia, Brazil, Japan, or Bosnia.

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How can I verify that my project has reached B-a-MedFounder and is being evaluated?

After we receive all of your materials, we will send you a confirmation email with this information included. If you do not receive a confirmation email within ten days, check your Junk or Spam folders. If you do not find our confirmation email there, please write to us through info@bamedfounder.com.

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Will all the projects be displayed in the same B-a-MedFounder virtual showroom?

Our virtual showroom can be browsed through the selection of medical device categories, such as surgery related, ophthalmology related, oncology related, and so on. At the outset, users will be able to view a general virtual showroom where all projects will be listed together. However, by clicking on a medical device category link on the top menu, users will also be able to see projects located within a specific medical device category. Furthermore, there will be a virtual showroom dedicated to “Consumer Oriented” projects and a virtual showroom for “Successful” projects; this is an area where projects that have successfully secured funding through B-a-MedFounder will be displayed.

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For how long will projects be displayed in the B-a-MedFounder virtual showroom?

Projects that have successfully passed the review process will be displayed in the B-a-MedFounder virtual showroom for a period of ninety days, which is referred to as the "active funding period". The deadline for making investments to a specific project, on the other hand, shall be referred to as the “funding target date”.

From the first day of the ninety-day active funding period, until the funding target date, projects will be shown under the “Projects Currently Being Funded” heading. Investors will be able to make pledges to projects throughout this time frame. The funding inception date will appear on each project profile page. Two weeks before the end of the ninety-day active funding period, a banner will be added to the projects indicating that the active funding period is “Ending Soon”. The pitch, total value of pledged sums, and number of investors, will appear on the project profile page, as well.

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Where will my project appear in the B-a-MedFounder virtual showroom?

Newly added projects will be opened for funding and displayed under the ”Projects Currently Being Funded” heading for a period of ninety days. If 75 percent of the initial funding target is not reached by the funding target date, the project profile page of your project will be closed and all pledges made by investors will be cancelled.

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Can I change my project after it is displayed in the B-a-MedFounder virtual showroom?

No. Once your project is submitted to B-a-MedFounder for the review by our experts, you will not have a chance to make any changes to your project. Do your best and make necessary changes to your project before submitting it, while it is in draft form.

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Can I request an extension to the project active funding period?

If the initial funding target is not reached by the funding target date, you can request an extension of thirty days. Extended projects will be marked as “Extended”.

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Can I post updates regarding my project while it is being displayed?

Yes, absolutely. You can do this through the updates tab on your project profile page. The updates are important for current and potential investors.

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What is my responsibility for answering questions from people who are interested in my project?

People can post questions about your project on the discussion board during the ninety-day active funding period while the project is displayed in the B-a-MedFounder virtual showroom. All project owners are requested to respond to questions within four days after someone has asked a question on the discussion board. This requirement allows the crowd to see all questions and answers as well as other comments. By answering a question on your project’s discussion board, you will help others who have similar questions. It is very important to answer these questions promptly, especially during the first month that your project is being displayed in the B-a-MedFounder virtual showroom. Be frank and transparent with your answers. Do not forget that most of the questions are from people who are interested in your project, but they want to be able to evaluate the project as well as the person/people who is/are behind it before making a pledge.

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Can the project owners meet personally or through the internet (i.e. Skype or Tango) with the reviewers (experts) or investors of a project?

Not until the successful closing of a project’s funding takes place. Our project reviewers (experts) are anonymous. The project owners will have access only to the names and abbreviated surnames (unless they choose to remain anonymous) and locations (country) (i.e. John B., United Kingdom) of the investors of their project during the active funding period through their dedicated project profile pages. In projects offering equity as incentive, a full list of investors with pledge details will be sent to the project owner requiring their approval within 48 hours of the funding target date and before closing takes place.

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Is there an interaction between the project owner and the investors?

During the entire period when a project is displayed in the B-a-MedFounder virtual showroom, the only interaction that will occur between the parties will be through the project’s discussion board. It’s very likely that potential investors will ask you a lot of questions through your project’s discussion board. Be ready to answer those questions within four days, and your replies should be styled in a short, but direct manner. Everybody who is interested in investing in your project will be able to see the questions and the answers as well as the comments. Those investing in projects will want to know the prospect of seeing a medical device that will help the people who need it.

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How will people know about my project?

B-a-MedFounder provides a dedicated, internet-based showroom for those interested in medical devices. B-a-MedFounder will release information about our medical device crowdfunding platform to the print or electronic media channels, as well as web-based media sources for reaching large masses of people who may become interested in such projects.

During the listing period, your project will be displayed together with other projects. The interested parties will choose one or more projects to obtain more information by clicking on the project they are interested in, or they can ask questions through the project’s discussion board.

Once your project is opened for funding, we recommend that you make best efforts to promote your project online in order to raise the targeted funds. As a first step, you can prepare a contact list of all people in your network or people that you would like to reach and inform about your crowdfunding campaign including Angel/investor networks. Sending these contacts a well-written e-mail message containing the short URL of your project profile page would be helpful. Secondly, you can prepare a press release about your crowdfunding campaigns explaining your goals and rationale for choosing crowdfunding as a funding alternative and distribute it to all relevant media sources and bloggers. You should also use social media effectively in order to create a web-based funding group that will be supporting your project. Specifically, share your B-a-MedFounder project profile page with others on Facebook and LinkedIn and post updates about your project regularly. Also, try to identify groups and persons related to medical entrepreneurship, Angel investing, and so on, on those social networks to expand your reach. Finally, send tweets to potential investors with an aim to introduce your project and mention @BaMedFounder or #BaMedFounder in your tweets.

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What are the costs associated with proposing a project on B-a-MedFounder?

For total pledged sums of up to USD 100,000 you pay only a 7 percent success fee assuming that 100 percent or more of an initial funding target is reached. You may also receive the funds if the total pledged sum reaches 75-99 percent of the initial funding target by the end of the ninety-day active funding period. In this case, you would pay 10 percent as a success fee to B-a-MedFounder. Furthermore, there is a regressive success fee with higher total pledged sums applicable when 100 percent or more of an initial funding target is reached. (Please see next question). In addition to the success fees, project owners also pay MangoPay transaction fees of approx. 2.5 percent

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What is a regressive success fee?

In total pledged sums above USD 100,000, project owners pay regressive success fees assuming that 100 percent or more of their initial funding targets are reached.

  • In total pledged sums of USD 100,001 - 200,000: 6.5 percent + MangoPay fees
  • In total pledged sums of USD 200,001 - 300,000: 6 percent + MangoPay fees
  • In total pledged sums of USD 300,001 - 400,000: 5.5 percent + MangoPay fees
  • In total pledged sums of USD 400,001 - 500,000: 5 percent + MangoPay fees
  • In total pledged sums of USD 500,001 and more: 4.5 percent + MangoPay fees

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What happens when my project raises funds greater than its minimum funding threshold?

You can receive the funds after B-a-MedFounder success fees and the MangoPay transaction fees are deducted. You will also receive a list with the full names and surnames, email addresses as well as the pledge amounts of investors at the time the funds are made available to you. Please do not forget to send investors a letter of appreciation for their selection of your project.

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What happens if the total pledged sums remain well below the initial funding target?

B-a-MedFounder is not an “All-or-Nothing” fundraising site. However, none of the investors will wish to give their money if the minimum funding threshold is not achieved. The money is invested for the purpose of the development of the new medical device idea and not for other expenses. However, when 75 percent of the initial funding target is reached by the end of the listing period, we will release the pledged funds after verifying that all the necessary documents have been signed and after our success fee and the MangoPay transaction fees are deducted.

We recommend that investors closely follow the pledges made to the project that they have made a pledge to. When 75 percent of the initial funding target is reached, we encourage the project owner to try to find additional investors, including friends and family members who might wish to invest in the project so that it can reach 100 percent, and pay less success fees to B-a-MedFounder. Although B-a-MedFounder will make more money if the total pledged sum remains between 75-99 percent of the initial funding target, we prefer to have the project owner collect the maximum necessary funds for his/her project. When the project is successful, then the project owner can come back again for the next step of the project with the goal of seeking additional funding through our website.

Let’s do a little calculation:

In a project with an initial funding target of USD 120,000, if you reach 75 percent of the initial funding target (USD 90,000), your account will be deducted USD 9,000 (10 percent) + MangoPay transaction fees (approx. 2.5 percent), leaving you with a net amount of about USD 78,750.

If you reach USD 100,000, your account will be deducted EUR 10,000 (10 percent) + MangoPay transaction fees (approx. 2.5 percent) and will leave you with a net amount of about EUR 87,500.

But, if you reach 100 percent, the deduction will be only USD 7,800 (6.5 percent) + MangoPay transaction fees (approx. 2.5 percent), which will leave you with a net amount of about USD 109,200.

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Can a project raise more money than its initial funding target?

Yes, and some often do. In projects offering equity as incentive, the upper limit (final funding target) is pre-determined by the project owner at the outset. In cases where there is strong demand in a project’s funding round and hence the initial funding target is exceeded, the project owner will provide a higher percentage of equity to the investors while the pre-money valuation is kept at the pre-determined level.

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When do I receive the funds that have been pledged to my project?

You, as the project owner, will be able to track the development of pledges made to your project through your project’s dedicated profile page.

At the end of the pre-determined active funding period and assuming the minimum funding threshold is reached, the pledges made will be converted into investments and disbursed to the project owner’s MangoPay e-wallet as a lump sum after the deduction of B-a-MedFounder success fees and MangoPay transaction fees. Please also note that it may take up to five business days for the payments to transfer to the project owner’s bank account from his/her MangoPay e-wallet.

Please also note that currently B-a-MedFounder facilitates the funding of equity-based projects only via MangoPay.

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How and when do I receive the pledged funds?

B-a-MedFounder is not an “All-or-Nothing” fundraising site. However, none of the investors will wish to give their money if the initial funding target is not achieved. The money is pledged for the purpose of the development of the new medical device idea and not for other expenses. However, when 75 percent of the initial funding target is reached by the end of the listing period, we will release the pledged funds after verifying that all the necessary documents have been signed and after our success fee and the MangoPay transaction fees are deducted. We recommend that you closely follow the pledges made to the project you have supported.

When 75 percent of the initial funding target is reached, we encourage the project owner to try to find additional investors, friends, and family members to pledge to their project and reach 100 percent. This allows you to pay less success fees to B-a-MedFounder (See the relevant question in Project Owner FAQ).

Although B-a-MedFounder will make more money if the total pledged sum remains between 75-99 percent of the initial funding target, we prefer that the project owner collects the maximum necessary funds for his/her project. By becoming successful, the project owner can return, take the next step, and look for additional funding through B-a-MedFounder.

Let’s do a little calculation:

In a project with an initial funding target of USD 120,000, if you reach 75 percent of the initial funding target (USD 90,000), your account will be deducted USD 9,000 (10 percent) + MangoPay transaction fees (approx. 2.5 percent), leaving you with a net amount of about USD 78,750.

If you reach USD 100,000, your account will be deducted EUR 10,000 (10 percent) + MangoPay transaction fees (approx. 2.5 percent) and will leave you with a net amount of about EUR 87,500.

But, if you reach 100 percent, the deduction will be only USD 7,800 (6.5 percent) + MangoPay transaction fees (approx. 2.5 percent), which will leave you with a net amount of about USD 109,200.

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What happens when the funding of a project offering equity as incentive is closed successfully?

We check that all the paperwork is complete and that everyone that had to sign the standardized and binding term-sheets has done so. Then we inform you and all investors in your project that the investment round is closed and indicate the amount of funds accrued in the MangoPay e-wallet of your project. We also request MangoPay to transfer the funds to your bank account after the deduction of their own and our fixed fees.

From this point on you have to start investing the money in your project according the milestones you described in your pitch and work hard to reach your target. Only a successful project can open for you the doors to come back with the same project for additional crowdfunding or applying for funding through a new project.

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How will I receive the money at the end of a successful funding round?

After checking that all the pledges made are registered in the project’s MangoPay e-wallet, and all paperwork has been completed, you are then entitled to receive the funds via MangoPay after the deduction of the pre-fixed charges. All taxes, levies, and bank charges are your responsibility.

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What happens to the pledged sums if the minimum funding threshold is not reached?

All total pledged sums that are below 75 percent of a project’s initial funding target by the funding target date will be cancelled and the payments made via MangoPay by the investors will be refunded. Please see General FAQ for further explanations.

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What information will I receive about the investors of my project at closing?

When your project raises funds above its minimum funding threshold by the end of the active funding period, at the time the funds will be released you will receive the full names and surnames, email addresses as well as the pledge amounts of investors that made a contribution to your project.

If a project cannot raise funds above its minimum funding threshold, then the project owner will not receive such information from B-a-MedFounder.

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Do I have to report the development status of my project?

Yes, you do. Be prepared to write quarterly reports to your investors on how your project is developing. Your investors want to know how their funds are being spent. These reports will not appear on our website. Your quarterly reports will make them happy. Do not forget that the investors can write their opinion about you and your project through the project discussion board, even after a year from the date you raised the funds. You have to remember that happy investors, coupled with successful projects, will add more credibility to you and to your project. It can open the doors for additional crowdfunding of your future projects.

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Can I come back for an additional round of funding through B-a-MedFounder?

Yes, absolutely. After helping you obtain the first round of funding, and if you wish, we can display the more mature status of your project, which has a proof-of-concept in the B-a-MedFounder virtual showroom. This shows other viewers that your project is ready to go to the next stage and has a need for further funding. Such “continuation projects” will have a priority for evaluation.

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Can more than one project be submitted at one time by the same person?

B-a-MedFounder does not limit the number of projects a person or a company can submit at any one time as long as such projects meet our guidelines. However, we would like to remind you that this may confuse potential investors and may split their funding, thereby reducing your chances for reaching your initial funding target.

If you have more than one project, choose the one that you want to be funded first. Then, submit the other project when your initial project is approaching the funding target date.

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Can I re-submit a project if its funding was unsuccessful in the first trial?

Yes, you can. However, we recommend that you re-think the reasons why the failure occurred, and then consider making any necessary changes before re-submitting your project. You may change your pitch, the initial funding target, the final funding target, or the pre-money valuation. A re-submitted project will have to proceed through all the steps and approval phases, just as if it was a new project submission.

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What guarantee do I have that my idea will not be stolen?

Please read on our website the relevant information pertaining to IP and our recommendations on how you can protect your ideas. If you do not take the necessary steps to protect your ideas before submitting them, then the crowdfunding platforms may not be for you. Do not forget that sharing ideas is the mainstay of crowdfunding and protecting your ideas is your responsibility.

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Will B-a-MedFounder take a percentage of ownership or intellectual property from the projects displayed on the B-a-MedFounder website?

No. B-a-MedFounder will not take a percentage of ownership in your project or in your intellectual property.

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Will B-a-MedFounder have exclusivity on my project?

Yes, we do request exclusivity from the project submission date to the funding target date. You will not be able to submit your project to different equity-based crowdfunding sites at the same time. You are not allowed to submit your project to B-a-MedFounder if you have already sent it to other equity-based crowdfunding sites and during that period of time when the project is in process at other sites. Projects found being displayed in other equity-based crowdfunding sites will be removed immediately from the B-a-MedFounder virtual showroom. If your project is not elected for being displayed in the B-a-MedFounder virtual showroom, we will not have any rights on your project, including exclusivity rights.

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Can I cancel my participation?

Yes, you can cancel your participation and ask for the removal your project from our virtual showroom just by sending an email to us at info@bamedfounder.com with “Remove my Project” in the subject line. Be sure to include your project number in the body of the email.

We will send you an email confirming the removal of your project from our virtual showroom. All pledges made to your project will be cancelled, as if the project failed to reach its minimum funding threshold.

Your project profile page will remain visible but not active for an additional week, which means that nobody will be able to make a pledge or post questions or comments. An indication confirming that the project has been retrieved will be added to the project profile page as well.

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What if I am an individual inventor, do not have a company or the laws of my country do not allow distribution of shares?

If you are an individual entrepreneur developing your project in your “garage,” this may be a problem for you. If the funds you need are more than a few thousand U.S. Dollars, we recommend that you start a new company and then apply to B-a-MedFounder. Without a company the chances to obtain funds from investors who are looking for a financial gain are almost nil. If you are not interested in starting a company, you may look for donations only. The donors will not expect a financial gain. You may promise them one or two of the devices (if permitted) you will be developing free of charge. Be aware that most medical devices necessitate a prescription by a physician and cannot be given as rewards. Activate your imagination to find other rewards in such cases.

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Will equity based crowdfunding of a project cause difficulties for larger investments by VCs in subsequent rounds?

Through the use of a standardized term-sheet, terms of use and the project owner distributing only non-voting shares we built a system to reduce the possibility of a compromise in subsequent financing rounds. This standardization can make the job of the Angels or VCs easier when evaluating future investment opportunities in projects.

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