Investing with AOS-sponsored Invention Investment Funds lowers your investment risk. Here are some of the reasons why:

1.   The money is invested in clearly-defined “lower-risk” inventions, versus less focused, ambiguous “higher-risk” startup companies.

2.   Investments are made in something “concrete” i.e., partial ownership of inventions and the related intellectual property, not “blue sky” securities in a startup companies.

3.   Maximum capital invested in any single invention is $75,000 (versus, potentially, millions of dollars in a startup company), invested in three separate tranches – for each tranche for which investment is approved, milestones must be previously achieved and an additional % of ownership in the invention must be surrendered (projected aggregate average: 20%).

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Investing in innovation by investing in startups is inefficient.

In fact, startup companies are actually a drag on the retail investor’s return from innovation investing.  That’s because before you, the retail investor, is allowed to invest in a high-flying startup, all the people who come before you (founders, co-founders, lawyers, accountants, business development specialists, investment bankers and stock brokers) get to take a piece out of the pie first.

At AOS, we invest in innovation directly, not through costly and failure-prone startups.

When you invest your money in one or more AOS-sponsored Invention Investment Funds, you know that your dollars are having a direct impact on the development and ultimate commercialization of the inventions contained in the Fund.  No costly middle men, resulting in more of the value of that idea or innovation ending up in your pocket, instead of someone else’s. 

Every dollar of yours that we invest, will come back to you with a return that gives you what you need and helps you to retire in comfort in the future. And, that’s because we use the best inventing industry practices, practices that are efficient and cost conscious, allowing us to identify, develop and ultimately commercialize the best of the best innovation investment opportunities that come our way at the least possible cost.

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Unlike venture capitalists, angels and downstream institutional investors (like Fidelity, public pension funds, and the like), at AOS we don’t believe in over-investing in any one idea or invention.

From our many years in the inventing industry helping clients develop and commercialize their inventions, we’ve learned that for a minimal investment of no more than $75,000, any idea or innovation should be able to demonstrate its commercial viability.  We know that if it doesn’t achieve that milestone after that level of investment, then 99% of the time that invention will never go anywhere.

At AOS, our philosophy is, rather than continue to throw money down the proverbial “rathole”, we will cut our losses and move on. The temptation that “if we just held on for one more day, put a little more money into it”, however tantalizing, is, more often than not, a fool’s errand.

By approaching invention investment in this way, while we may, infrequently, but occasionally, have a failure, we’ll never, ever suffer a disaster.  And, that’s good news for you, the investor.

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Over time, AOS-sponsored Invention Investment Funds will provide a  far greater opportunity for significant portfolio diversification than any existing, competing product.

At present, there are plans for six “Invention Investment Families”, with each Family serving as an “umbrella” for a minimum of three different Invention Investment Funds (Funds I thru III).  As each of the six Families fulfills its mission of creating a minimum of three funds apiece, there’s an opportunity in the future for even more Families (and their related funds) to be rolled out.

In addition, each Invention Investment Fund is capable of holding, literally, not thirty (like venture capital funds) or hundreds (like mutual funds) but, literally, thousands of opportunities to invest in innovation. These inventions will come, not only from career serial independent inventors, but also from those individuals among members of the general public who are capable of coming up with that one great idea (with some estimates putting that number as high as 11 million people).¹

With the many currently envisioned funds, funds that may be added in the future and the greater capacity for each fund to hold many, many more investments than competing investment funds, we envision the AOS-sponsored Invention Investment Fund becoming the ultimate “gold standard” for future portfolio diversification.

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At AOS, we believe the secret in life is to not be too greedy.

This principle extends to our own compensation. Thus, our compensation structure is extremely modest, allowing us to provide greater returns to you, the retail investor.  This includes:

No load funds: No upfront or back-end management fees when you’re investing in, or exiting from, your AOS-sponsored investments¹

Strict elimination of unnecessary overhead: AOS strives to ensure that each AOS-sponsored fund is run with “thin” overhead, reducing operating costs to the lowest level possible. This includes:

— There are never more than two staff members (both of whom serve as executive officers of the fund) at the fund level. Instead, all day-to-day management functions are performed by an outsourced management company (“OSMC”), relieving the funds of the necessity of having to “staff-up” in order to conduct day-to-day operations

— Balanced against this “flat” staffing, each fund has its own, independent Board of Directors.  Each of these boards is charged with directing policy and controlling all important decision-making. In consideration for their service, each Board member receives a small honorarium ($200) for each regular monthly, or special, meeting they attend.

— Absent prior shareholder approval, OSMC’s compensation will never exceed $60,000/month. This single monthly fee is paid by the funds collectively, i.e., each fund contributes its pro rata share based on the number of funds then outstanding. For example, if there are five funds outstanding, each fund would pay 1/5 of the fee, or $12,000 per month.

Modest management compensation: Without prior fund shareholder approval:

— There will never be more than twelve managers managing the AOS-sponsored funds’; and

— No manager will ever receive more than $5,000 per month in compensation (which includes both salary and bonus)², with many receiving compensation at substantially lower levels.

With these types of limitations and structures in place, those making an investment in innovation can be assured that, no matter what, AOS managers will never get rich at your expense.

1. A nominal handling fee will be assessed (i) at the time of account opening, (ii) to cover the cost of any redemptions, and (iii) at the time of account closing.

2. Immediately prior to the time of the first outside funding (under either Title III or Title IV of the JOBS Act) of any AOS-sponsored fund, OSMC will receive a grant of restricted stock (in the amount of 380,000 Class B shares of such fund), for which it has paid a discounted price and which will vest at the rate of 1/36 per month until vested in full.

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