Questions and answers on BiD Network Matchmaking Services
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1. Do you guarantee the quality of the plans/entrepreneurs on your website?
2. What is the 3-bullet system?
3. In which countries do you operate?
4. In which sectors do you operate?
5. Do you offer financial guarantees?
6. What are the average sizes of investment in BiD Network entrepreneurs?
7. Can you tell me something about the successes of BiD Network in the past?
8. Will I make money on my investment?
9. Can anyone become an investor?
10. Is it ethical to make money on investments in 3rd world entrepreneurs?
11. Who can help me manage my investment?
12. Can I find other (co-) investors? How?
14. Which services can I expect from your local third parties?
15. How can I register and receive the newsletter for investors?
16. What can I do if my question is not answered here?
Answers
1. Do you guarantee the quality of the plans/entrepreneurs on your website?
Due to the large number of business plans and entrepreneurs on our website we cannot guarantee a high quality for every plan or person. In order to help investors pick the best plans we have developed a 3-bullet system. See the question below. Furthermore, we strongly recommend that every investor performs his own checks on the entrepreneurs and their companies. If desired, BiD Network can introduce an investor to local service providers that can support them on these checks.
2. What is the 3-bullet system?
1 bullet: The plan application (executive summary) has been approved by BiD Network.
2 bullets: The entrepreneur has submitted a full business plan on our website.
3 bullets: BiD Grade Plan. The business plan has received a positive judgment from BiD Network. The entrepreneur has often been in our network for several months with good experiences from our side, such as its responsiveness to our feedback. We think that the basic elements of a business plan were included and described in a sufficient manner. Also we believe that the goals of the plan seem realistic and attainable and that the management seems qualified to realize it. We believe that this plan deserves to be brought to the attention of investors. We deem this plan ‘BiD Grade’
3. In which countries do you operate?
BiD Network works with entrepreneurs in emerging markets all over the world. Entrepreneurs with a business in a country that is included in the DAC list. In 16 countries BiD Network collaborates with a National Partner, which is a local organization that can offer on the ground support to entrepreneurs and investors. These focus countries can be found in the bottom bar of this page.
4. In which sectors do you operate?
BiD Networks supports entrepreneurs in almost every sector of emerging markets. Sectors and products that are excluded are based on the IFC exclusion list, which can be found here. Our experience is that a large share of entrepreneurs on our platform is engaged in agriculture or food processing. Business in the sector of renewable energy, or more broadly, businesses contributing to sustainable use of resources, enjoy above average interest from investors.
5. Do you offer financial guarantees?
BiD Network does not offer financial guarantees; the investor is fully responsible for his own investment. We can support investors in finding parties that might be willing to give off such a guarantee. Also, we can support in the finding of subsidies that can decrease the financial risk for the investor.
6. What are the average sizes of investment in BiD Network entrepreneurs?
BiD Network works with entrepreneurs that have a financial need between 10,000 USD and 1,000,000 USD. The average investment size is 130,000 USD.
7. Can you tell me something about the successes of BiD Network in the past?
The Matchmaking department of BiD Network and her National Partners have successfully matched 90 investors to entrepreneurs within the network. In total over 12,000,000 USD was invested. In addition, BiD Network has supported 490 companies to start up or grow by offering them support and introducing them to financiers, coaches and other businesses. Here are some examples of entrepreneurs that we have matched to investors in the past:
- www.barefootpower.com
- www.windaid.org
- www.wanaenergysolutions.net
- www.wonderable.com
8. Will I make money on my investment?
There are no guarantees for success in investing. Investing in unlisted fast growing business is full of risks (see disclaimer in General Terms & Conditions). On the other hand, it seems that pressure from competition is far less in the new emerging markets. Good entrepreneurs who have capital where their competitors have none seem to make good margins and grow fast. It is a typical pioneers market. The risks are high and the returns can be exceptional.
9. Can anyone become an investor?
In principle, if you have money, there is no law against becoming an investor. In practice, successful investing seems to be something one has to learn. An entrepreneurial background is essential but not enough. Success seems to come with experience. We advice novice investors to team up with more experienced investors to learn the tricks of the trade.
10. Is it morally acceptable to make money on investments in 3rd world entrepreneurs?
Yes, it is not only ethical, it is even essential for the development of a sustainable economy. New businesses flourish best with capital supplied by local successful entrepreneurs. If we flood the market with cheap capital, local investors will invest their money elsewhere.
11. Who can help me manage my investment?
Once you have made your choice and you want to invest in a local business you can call upon the services of BiD Network and her local representatives to assist you with the due diligence and the usual financial, legal and administrative chores. After investment they can monitor your business and arrange that you are represented as a shareholder. Services may vary from country to country and are paid for by you. Of course you are allowed to make your own arrangements.
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12. Can I find other (co-) investors? How?
Yes, you can. How? 1) by letting us know. Depending on the desired profile, we might be able to introduce. 2) by attending our meetings and other events.
13. I never invested in a developing country before, what are the things that I need to pay extra attention to?
There are a lot of elements that require extra attention. Investing in developing countries can be quite different from investing in Europe or the USA. Cultural differences, expressed in customs, work ethics, and other things, are one of them. Also, currency risk and national law concerning legal and financial issues is important to take into account.
14. Which services can I expect from your local third parties?
In order to accommodate investors BiD Network can introduce them to a wide range of local service providers. Through our National Partners we can introduce you to local lawyers and accountants for example. Furthermore, our National Partners can be on the lookout for you to find specific entrepreneurs and businesses of your interest.
15. How can I register as an investor?
Register by filling in our Expression of Interestand you will be contacted or send an email to
16. What can I do if my question is not answered here?
Our Investor Matchmaking department is happy to answer any additional question you may have. +31 (0) 20 7555 004