AN OPEN LETTER FROM MARK PAULSMEIER, CHAIRMAN OF INTERNATIONAL VENTURE CAPITAL ASSOCIATION (IVCA)

To the international business community, interested parties and most of all to our valued associate funder members.

Given the unprofessional and seemingly criminal intentions of creating confusion and misperceptions in the international venture capital and corporate community, our associate funder members have understandably became concerned. As a result I have been mandated by IVCA’s associate funder members to:

• Place on public record the true facts about IVCA, and with specific reference to its corporate function, purpose and objective.
• Challenge National Venture Capital Association to publish factual proof of the innuendos published by it about IVCA.
• When necessary, file lawsuits of 1-billion US Dollar in respect of damages. (This would roughly equates to just more than 12% of IVCA’s associate funder members’ corporate investment activities in the preceding financial year.

As Chairman, I have every intention to protect the stature and integrity of IVCA and the interest of our associate funder members.

Our challenge to National Venture Capital Association

First and foremost, we do acknowledge and regret the fact that an Asian crime syndicate has in the past used IVCA’s credibility and reputation, as well as has created a website that looked remarkably similar to that of National Venture Capital Association (www.ivca-org.com), in order to defraud unsuspecting investors.

Yet, just like National Venture Capital Association, when IVCA have been made aware of these fraudulent operations, we have issued public statements that clearly disassociated us from such, of which a copy thereof is still available on our website. (www.paulsmeierincgroup.com)

Further, the National Venture Capital Association is well aware that the fraudulent operations of that specific Asian crime syndicate have long been terminated and the applicable website is no longer in use.

But, National Venture Capital Association conveniently ignores that fact and still publishes an article on the internet that forewarns anybody of the public to conduct business with IVCA or its associate funder members, which clearly implies that they will be defrauded.

It can therefore only be interpreted that National Venture Capital Association is referring to our IVCA, which is a division of Professional Investors Group, founded in 1981.

Given the serious nature of National Venture Capital Association’s deliberate and malicious actions, IVCA publicly challenges National Venture Capital Association to publish in the international media any factual evidence that proves:

• IVCA’s website, (www.paulsmeierincgroup.com), is similar to that of the National Venture Capital Association, or that we have at any time referred to ourselves as a sister organization of National Venture Capital Association. (In addition, it is necessary to mention that IVCA’s website (www.paulsmeierincgroup.com) is our intellectual property, which was designed and developed by ourselves and in no way bears any resemblance whatsoever to that of the National Venture Capital Association, neither in content nor in design, as is suggested.)
• IVCA has since 1981 accepted any investment from any institution, business or individual.
• IVCA has since 1981 manages any investment on behalf of any institution, business or individual.
• IVCA has since 1981 defrauded any institution, business or individual.
• Any institution, business or individual has suffered a financial loss by conducting business with IVCA.

IVCA, hereby place on public record that it has never accepted or manages any investment of whatsoever nature, on behalf of third parties, nor has IVCA any intention to accept or to manage any investment of whatsoever nature in the future. This would be in direct conflict of IVCA’s corporate function, purpose and objective.

Overview of International Venture Capital Association

International Venture Capital Association is the venture capital financing division of Professional Investors Group, founded in 1981, consisting of about 1200 visionary venture capital funding syndicates. Each of the syndicates comprise of between 5 and 20 venture capitalists or investment angels. The collective funding capacity of International Venture Capital Associations’ associate funding members exceeds $115-billion.

The associate funder members of International Venture Capital Association includes several venture capital companies, investment angels, mezzanine firms, finance houses as well as various international investment funds.

In its capacity as the representative body of so many influential sources of international venture capital, International Venture Capital Association is dedicated to promote its associate funder members to entrepreneurs and business leaders all over the world. In addition, International Venture Capital Association seeks to highlight the significant contributions as well as the positive effect its associate funder members have on project and business development in the global economy.

Function of International Venture Capital Association

The function of International Venture Capital Association is to gather and accommodate discerning venture capital financiers and investment angels seeking viable and high yielding investment and project opportunities to invest in.

Furthermore, International Venture Capital Association seeks to provide its associate funder members with opportunities to fulfill social and moral aspirations. This is achieved by funding responsible business opportunities and project developments that create work opportunities, work expertise and infrastructure.

Purpose of International Venture Capital Association

The purpose of International Venture Capital Association is to:

• Provide visionary financiers with a choice from a broad range of viable projects from its comprehensive and select project portfolio.
• Represent and promote funder members to those seeking venture capital.
• Represent funder members’ interests in negotiations with international governments and Chambers of Commerce.
• Facilitate the exchange of important information between funder members.
• Improve the image of the venture capital industry by encouraging funder members to comply with the highest standard of corporate governance and professional practice, as well as moral and ethical values.

Objective of International Venture Capital Association

The objective of International Venture Capital Association is to provide associate funder members with the following potential opportunities:

• Formal association with an exclusive international venture capital network organization of stature and integrity.
• Provision with an array of excellent projects in need of funding.
• Access to up-to-date research and general information about the venture capital industry.
• Exposure to a substantial number of investment bankers and project brokers.
• Access to high yielding projects with reduced risk as a result of strict pre-evaluation processes.

Conclusion

It has become obvious that IVCA’s robust growth and rapid international expansion in the highly competitive venture capital industry, is a concerning factor for the complacent and overconfident establishment.

Therefore, my message to our associate funder members is that we will continue to make significant inroads into the international market, irrespective of the aggressive campaigns to influence IVCA’s credibility, integrity, substance and capabilities. After all, our dynamic approach to business and growth is a strong indication that IVCA and its associate funder members have brought a breeze of excitement into the global market.

To the myriad of businesses and entrepreneurs all over the world, my message is that IVCA and its associate funder members will remain focused and committed to a vision of providing affordable as well as intelligently designed corporate funding solutions, in order to contribute to a healthier global economy.

Mark Paulsmeier
Chairman

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