Reasons to Invest

There’s a Sea-Change Coming: Don’t Get Drowned by the Resulting Tsunami in the Public Markets!

Instead, Invest with a Purpose: Invest Directly in Thoroughly-Vetted, High-Quality Inventions and Help Turnaround America!

Superior Returns, with Lower Risk and Less Worry!!!

Invest in “Invention Investment Funds” Instead of Startups

An “Invention Investment Fund” is a vehicle designed to receive investments made by ordinary investors to acquire a direct ownership interest in new ideas and inventions. The Invention Investment Families, through the Invention Investment Funds, accomplishes this by directly investing in such ideas and inventions themselves, instead of the companies in which ideas and inventions are typically contained (i.e., “direct investments in ideas and inventions, and not in startups”).

There are many reasons why you should invest in innovation directly. Here are just a few:

Top 12 Reasons for Investing in AOS-Sponsored Funds, including DaVinci Invention Investment Fund I

Thus to sum up, here’s some of the major reasons why investing with one or more of the AOS Invention Investment Families instead of existing speculative, or even traditional, investments makes eminent sense:

1. The money is invested in “lesser-risk” (i.e., maximum investment per investment target is limited to $75,000) inventions, versus “higher-risk” (i.e., downside, potentially, the loss of several million dollars per investment target) startups.
2. Investments made in inventions is for something “concrete” i.e., partial ownership acquisition (% subject to negotiation) of title to an invention and its related intellectual property, not securities in a startup company
3. Maximum capital invested in any single invention – $75,000, invested in three separate tranches – for each tranche for which investment is approved, an additional % of ownership in the invention is surrendered (projected aggregate average: 20%)
4. Inventor must agree to exit through licensing or outright sale to a third party – but is permitted to (i) repay the amount with interest at a rate negotiated at the time the “bridge loan” is made (i.e., 15% per annum or above), or (ii) come back to AOS if the invention is “one in a million” and the inventor is seeking permission to create a company to commercialize the invention by seeking private funding (other than AOS) to grow it. In such a case, the inventor must “buy back” his invention and the related IP rights at a price to be determined at the time of “buy back” based on the valuation of the idea or invention existent at the time of such buy back, determined by a professional appraisal and reaching a mutually-satisfactory “buy-back” price.
5. Under the terms of the agreement with the Fund’s managersManagement Contract, investment managers are entitled to reasonable, but extremely modest and below-market compensation (payable initially by AOS Managemen LLC (“AOSM”), but subject to reimbursement by the funds acting collectively), of between $1,000 and $5,000 per month per investment manager, with such monthly compensation permanently capped at that level, subject to increase only in the event of a vote to increase that amount which is favored by at least 51% of all of the shareholders of all of the funds voting, collectively, as a single class. It is anticipated that, initially, there will be 6 such positions, but in any event, not more than 12 positions at any point in time.
6. In addition to reimbursement of the cash compensation outlined in Paragraph 5 above, AOSM will receive nineteen percent (19%) of each fund’s outstanding capital (including Da Vinci’s) in the form of shares of Series B Preferred Stock. Such stock will possess an anti-dilution preference, but will otherwise be subject to a liquidation preference in favor of the Series A Preferred Stock described in Item No. 10 below. AOS intends that all shares of Series A Preferred Stock will be owned by the investors in each fund’s initial securities offering, which AOS believes will consist of members of the general investing public, some of whom may be defined as “accredited investors under Rule 501(a) of Regulation D under the Securities Act of 1933, as amended.
7. Managers help manage (subject to approval by each fund’s Board of Directors, including Da Vinci’s Board) such fund’s investments. Each AOS-sponsored fund is dedicated to a specific industry or, for larger industries, industry segment.
8. If need be, each of the funds can raise capital (i.e., do an “offering”) every 12 calendar months and, under extraordinary circumstances, as often as every 6 months.
9. Investment money is raised from general public through the innovative use of new Federal Title II, Title III and/or Title IV “public offerings” under the JOBS Act.
10. In every initial securities offering by a fund (including Da Vinci’s ), the investors in such initial offering (which, in every case, will be a Series A Preferred Stock offering), will receive one hundred percent (100%) of their capital back prior to any distribution to the investment managers or the remaining shareholders. 
11. There are no additional fees. However, AOSM will be entitled to receive reimbursement of moderate, reasonable and necessary business expenses incurred by AOSM on behalf of each of the funds (i) in the running and maintaining of such fund’s business on a day-to-day basis, and (ii) for capital expenditures incurred to improve such business operations.
12. Given the smaller, maximum amount of money invested (i.e., $75,000) per investment opportunity, AOS-sponsored funds, including Da Vinci, represent, potentially, a tremendous opportunity for a greatly enhanced rate of return at a much lower risk profile (i.e., than speculative securities or venture capital-funded portfolio companies). 

To put it simply, in the opinion of AOS and its designee, AOSM, the invention portfolio pool is much more favorable than either traditional investments or even other speculative alternative investments since with the AOS invention portfolio pool, risk is spread over many, many more investments than is possible under, say, the venture capital model, where the average venture capital fund cannot, as a practical matter, invest in more than 30 portfolio companies per fund raised.