Questions and answers on BiD Network Matchmaking Services
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1. Why is the service not free for investors?
2. Who gets the profit BiD Network makes on my investments?
3. Will I make money on my investment?
4. Can anyone become an investor?
5. Is it ethical to make money on investments in 3rd world entrepreneurs?
6. Who can help me pick the best investment?
7. Who can help me manage my investment?
8. Can I find other (co-) investors? How?
9. Can I donate money (instead of investing it)
11. How can I register and receive the newsletter for investors?
12. What can I do if my question is not answered here?
Answers
1. Why is the service not free for investors?
BiD Network is a private foundation funded in part with public funds. We do not want to "spoil" the market by offering free services where our competitors have to charge fees. 2.5% is an average matchmaking fee, charged by most matchmakers who are member of the European Business Angels Network (EBAN). Generated income will in all cases be for the benefit of the mission of BiD Network Foundation: stimulating the SME sector in developing countries.
2. Who gets the profit BiD Network makes on my investments
Hardly anybody is able to make money on Equity Matchmaking for New Businesses. Not even under the best of circumstances. Professional matchmakers are hard to find and matchmaking is a very labour intensive activity. 80% of the time and effort of matchmakers is spent on creating awareness among entrepreneurs on the workings of the capital market. So any money we might make is spent on creating a bigger and better deal flow.
3. 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.
4. 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.
5. 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.
6. Who can help me pick the best investment?
NO ONE! As an investor you are the expert. If you don't know what business to invest in, who does? If you have trouble making your choice, we suggest you find a group of investors you can join or invest in one of the many investment funds.
7. 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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8. 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.
9. Can I donate money (instead of investing it)?
You can. But we rarely advice anyone to do so. So-called ‘free money’ often has counterproductive results for all involved, especially in the long run. But it obviously depends. Feel free to contact us.
10. Once I have defined a business, how do get the personal contact with the entrepreneur that is needed in order to make a decision?
Before spending time and money on a plane ticket your personal interaction can be facilitated by the use of digital video, Skype, and low cost phone calls. BiD Network can facilitate online meetings as well.
11. How can I register and receive the newsletter for investors?
Send an email to and include ‘receive newsletter’ as the subject
12. What can I do if my question is not answered here?
Send your question to
