Question 1

How secure are you?

Accepted Answer

Given this industry, security is a top priority of ours. Any extremely sensitive information like driver's licenses for KYC are passed through to our providers and never stored by us. Any personally identifying information (PII) that we must store (user's name, phone, address etc.) are encrypted in our database. All offer documents are stored in private and secure Amazon S3 (simple storage service) buckets. Access to any and all information within the platform are gated by user roles and privileges, ensuring that only those with the proper authorization can view them.
https://wealthblock.ai/agreements/privacy
https://wealthblock.ai/agreements/terms

Question 2

Do Syndicators have to be registered or licensed?

Accepted Answer

We operate as an Exempt Registered Advisor (ERA). This means our regulatory lift consists of a tiny upfront fee and an annual filing of Form ADV. The reasons we're exempt are twofold: First, we are venture investing, which has an explicit exemption and second, we're not earning commissions. Carry doesn't count because there are fewer conflicts of interest.

Question 3

Need additional support?

Accepted Answer

We cover all general questions in our main Knowledge Base. For further assistance, don't hesitate to reach out at contact@aylak.sg-host.com.

Question 4

Can I embed a PDF into the offer page?

Accepted Answer

To embed a PDF document within the offer and allow vertical scrolling:

In the offer page, click on the usual “+” (plus) sign to add a new section. Select the PDF option.
Upload or drag your PDF into the space provided.
In the left-hand dropdown list, select PDF download to allow users to save the file to their desktop.
In the right-hand dropdown list, select Show All Pages to embed with scrolling display, as shown here:

Question 5

How do I send an invite without admin access?

Accepted Answer

If a member of the ecosystem (ex. a Syndicator) wants to invite a new member (ex. an Investor), they can do so easily even without admin access, by following these steps below.
NB: A Syndicator must first be authorized by Diffuse to be able to send out email invites (option 2 below).

Go to Live Offers. Click on Invites on the left panel.

Alternatively, click on the user icon on the upper right-hand corner of your screen and click on Invite Accounts.

Either action will take you to the Invitation Dashboard.

OPTION 1: Invite via an invite link.

On the Invitation Dashboard, go to the Dashboard tab. You now have two further options:
Share by link. Click on Copy to capture your unique invite link and manually share to your contacts OR
Share via social. Click on either the LinkedIn or Twitter icon and share via the social site’s usual mechanism (requires login).

OPTION 2: Use Invite a User function.Watch video demo.

On the Invitation Dashboard, go to the Account Invitations tab. 
Click on Invite a User. This will open a popup form.
Enter the invitee’s details in the space provided. Click on Invite User.

Question 6

How do I delete an existing offer?

Accepted Answer

Go to Manage Offers.
Click on Select Offers.

Tick the offer that you wish to delete.

Click on Edit Selected and then Delete Offers

Question 7

How do I embed a new document via the Document Library?

Accepted Answer

To embed a PDF document within the offer and allow vertical scrolling:

Upload the file and tick Show All Pages option.
Click on Update to save your changes.

Question 8

Why are you better than/different from other syndication networks?

Accepted Answer

Two main things:

We are driven by carry, not a “success fee” (read commission). We make money when the investor makes money so we have a strong motivation to help our companies in every way possible, right up until an exit.   Most syndicator networks just take a percentage of the amount raised up front and promptly forget about both the company and the investor.
Our Lead Investors are domain experts and professional investors. Most syndication networks are run by inexperienced investors looking to cut their teeth in venture capital.  See more about this in the “manifesto.”

Question 9

Who is in your network?

Accepted Answer

Professional Investors, connected Syndicators, Entrepreneurs and industry partners who pool their relationships, credibility and insights to fund and grow high-potential ventures.

Question 10

Who can be a Syndicator?

Accepted Answer

Our Syndicators are world class networkers from all walks of life who have a “help first” attitude towards both their contacts and the startups we invest in. Our Syndicators are Investors first and, with very few exceptions, have done multiple deals with Diffuse prior to becoming a Syndicator.

Question 11

Who can be a Lead?

Accepted Answer

Anyone who is an experienced investor with deep domain expertise in a particular area (where they have been investing).

Question 12

Where is your office located?

Accepted Answer

Diffuse by its nature (and name) is a distributed operation and prides its Ecosystem spans as many geographies as possible.  That said, the core Diffuse employees are currently primarily based in Chicago and Singapore.

Question 13

What is VC in a box?

Accepted Answer

Many new VC managers simply don’t have direct experience running a fund. We have decades of it. It doesn’t make any sense for a manager to spend their time interviewing service providers and reinvent the wheel...leave that to us. We’ll handle every aspect of running your fund (even down to marketing and positioning help) so you can focus on raising capital and working with Entrepreneurs. Everything is built on top of the core Diffuse infrastructure, so you know you’ll be adopting an institutional grade infrastructure.

Question 14

What is the minimum check size that Diffuse’s ecosystem will accept from an Investor?

Accepted Answer

The minimum investment will vary from deal to deal but will never be less than $10,000.00.

Question 15

What is the minimum amount that a Syndicator must syndicate in order to earn a share of carry?

Accepted Answer

It is the same as the minimum investment amount for an Investor above. It will vary from deal to deal but will never be less than $10,000.00.

Question 16

What is the minimum amount that a Syndicator must syndicate in order to earn a share of carry?

Accepted Answer

It is the same as the minimum investment amount for an Investor above. It will vary from deal to deal but will never be less than $10,000.00.

Question 17

What is the minimum allocation that a Lead can bring to the Diffuse ecosystem for syndication?

Accepted Answer

The minimum allocation is $200,000. Below that the SPV administration cost is too large relative to the investment to make it worthwhile.

Question 18

What if the entrepreneur wants to pay cash instead of carry?

Accepted Answer

We would politely but firmly tell them no.

Question 19

What if an Investor has been in contact with multiple Syndicators before investing in a deal?

Accepted Answer

The Investor self-reports which Syndicator, or Syndicators, referred them to the deal. In the event multiple multiple Syndicators feel they are due carry, Diffuse will attempt to broker a fair division based on the Syndicators’ level of involvement, whether they are investing themselves, when they contacted the investor, etc. No investment will be accepted unless all parties agree to a split.

Question 20

What does “carry” mean?

Accepted Answer

When a Syndicator refers an Investor to an investment, the Syndicator is remunerated for the effort with a percentage of the eventual profit of the investment.

Question 21

What do you mean by Commission free?

Accepted Answer

To ensure the shared objective is the long-term success of the startup, instead of paying a cash commission for their capital, professional Investors and Syndicators are incentivized with carry on the deals they source, vet and close.

Question 22

What do I get out of it?

Accepted Answer

In a word: leverage. You’re already making investments so all you need to do is secure for Diffuse an allocation above and beyond your normal check size and you’ll earn additional carry. We also will accept pro rata rights that you’re unable to exercise in later rounds so you continue to earn more carry rather than getting squeezed out of the round.

Question 23

What do I get if I refer someone to the Diffuse Ecosystem?

Accepted Answer

You get rewarded. If you refer a Lead Investor, Investor or Syndicator, you receive a 20% referral fee on the referred person’s carry earned on investments made in the first year of joining Diffuse (10% for the second year, 5% for the 3rd year and 3% in perpetuity).
For more on referring investments instead of members, see the Investment Section.

Question 24

What do I get by becoming a Syndicator?

Accepted Answer

There are tons of advantages to being a Syndicator, including:

Earn part of Diffuse’s share of carry from any investor you invite into the deal.
Pay lower carry on direct investments.
Network with our Syndicators and Leads at exclusive events
Get trained in venture investing with an eye towards becoming a Lead
Access to the Diffuse partner network and dedicated resources help the investment succeed

Question 25

What benefits does the startup receive in addition to the initial cash injection?

Accepted Answer

The benefits fit into 3 segments. Firstly the startup receives capital from a source which is structured to participate in follow on rounds, which means the founder can focus on building the business instead of chasing check. Secondly our partnership network offers, from CRMs to entrepreneur friendly banking and hosting perks. Thirdly, given each investment belongs to a domain expert pod, there is a strong community of Investors, Leads and Syndicators supporting each founder. Especially since only if the entrepreneur gets paid, does the Diffuse ecosystem receive a check.

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