FAQ

Frequently Asked Questions

How does Media Venture Network Work?

Media Venture Network is a funding platform for companies in the media, entertainment, music, gaming and publishing verticals where investors are able to fund early-stage investments in exchange for shares. Media Venture Network allows investors to invest in opportunities online through a private, SEC-compliant website. Once you become an investor, you can browse investment details, review legal documents, due diligence and sign legal documents on an SEC-compliant platform.

What types of opportunities are offered?

Media Venture Network’s primary focus is on early-stage companies that have platforms, products or services addressing a B2B or B2C concern in the media, entertainment, music or publishing industries, inclusive of:
  • Emerging technology (e.g. TVE, OTT, VR, etc.)
  • Content creation and distribution platforms
  • Monetization (subscription, PPV, advertising, commerce)
  • Data analytics and support systems

MVN seeks opportunities to work with companies that meet the following criteria:
  • Companies must have a dedicated team of founders (upon funding)
  • B2C companies must minimally have a market-ready MVP for testing unless founders have previous exit experience
  • B2B companies must either have a market-ready MVP or a letter of intent from an established company for a revenue-generating test

How does an investment get listed on Media Venture Network?

Founders / companies that are not directly solicited by Media Venture Network or its Partners can request an invitation to apply for inclusion on our platform by completing the raise funds form. Whether solicited or invited, companies will undergo a proprietary due diligence review conducted in conjunction with our broker-dealer partner, including a review of all materials in order to determine if the company meets Media Venture Network’s area of focus and level of development.

Are there fees for investors?

Joining Media Venture Network and browsing the listed opportunities is free. If and when you decide to make an investment, there are fees associated with each investment. The fees depend on the type of investment (equity or debt) and the nature of the transaction. Fees cover ongoing reporting and communications for the investments as well as administrative and legal expenses.

How will I be updated about my investments?

Media Venture Network will work with each company that raises money on our platform to ensure that timely updates (at least quarterly) are shared with all investors. Updates will be provided via email and made available via your investor dashboard. Investors will also receive tax documents (K-1) every year that you have a distribution from a an investment on Media Venture Network.

When will I see a return?

If your investment is in an individual company, you typically will not see a return until the company either IPOs (goes public) or is acquired. This outcome may not happen for some time if ever. If your investment is in a single purpose vehicle (SPV), MVN decides how and when to sell the stock from a company following an exit event (IPO or acquisition), after which MVN will determine a distribution of any sale proceeds to investors.

Is there risk associated with these investments?

Yes. Similar to investing in the stock market, there is no guarantee that an individual investment decision will be profitable. Any early-stage investment should be considered high-risk, and you should not invest in early-stage companies unless you are prepared to potentially lose 100% of the money you invest.

Why are some investments only for accredited investors?

Federal securities law requires that securities issued by private companies to their investors must be registered with the Securities and Exchange Commission (SEC) unless the offering qualifies for an exemption from registration.

One exemption from registration is available if the company offers securities only to accredited investors in a private offering. Accredited Investors are defined by the SEC as having $200,000 of annual income per individual ($300,000 per couple) for two consecutive years with the expectation of that continuing, or a net worth of at least $1 million, excluding the value of the primary residence.

The decision as to whether a specific investment is made available to Accredited or Non-Accredited Investors between Media Venture Network, the company and our broker-dealer partner, and is made based upon the type of raise.

What are the tax implications of investing through Media Venture Network?

Investors in a project will typically become a member of a Delaware limited liability company (the “LLC”). Generally, an LLC is taxed as a partnership for income tax purposes and therefore, each investor will be issued a K-1 with respect to his or her participation in the LLC.