Breaking Down the Barriers to Diversified Venture Investing
Our goal is to bring the potential benefits of venture investing into the public markets. The Fund will offer investors access to the returns of a broad group of private companies at a lower cost than traditional private venture fund fees (2 & 20), with greater liquidity.
Through our systematic selection process the Fund seeks to invest at least 80% of its net assets in companies that are, or that we believe have the opportunity to become unicorn companies within 3-5 years.
The Fund seeks to acquire a diverse set of venture-backed companies to avoid significant single-company concentration. The Fund concentrates >25% of its investments in one or more industries that comprise the technology sector.
Lower Fees
Unlimited’s 0.95% management fee is less than private funds
Diversification
Limit Manager concentration risk
No Paperwork
Simplify your life and skip the paperwork and the K-1s
Updates & Information
Frequently Asked Questions
Venture capital investing typically involves providing capital to privately held companies at early or growth stages of development. These companies often focus on innovation, new technologies, or emerging business models. Venture capital investments are generally long-term in nature and carry a higher degree of risk than traditional public market investments.
Yes. The Fund will be required to provide the public with periodic disclosures, including a schedule of investments that shows the name of each issuer in which the Fund has invested.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus. A prospectus may be obtained by clicking here. Please read the prospectus carefully before you invest.
Investments involve risk. Principal loss is possible. Diversification does not guarantee a profit or protection against loss.
Prepaid Forward Contract Risks. The Fund intends to enter into pre-paid forward contracts with individuals who hold securities in private companies. Counterparties to pre-paid forward contracts with the Fund may default on the performance of the contract, and in the event of such a default, the Fund’s sole recourse may be against the individual as a breach of contract, and the Fund will not have direct rights against the securities or the issuer of the securities underlying the pre-paid forward contract. The downside risks of the pre-paid forward contracts in which the Fund invests is typically not limited and the Fund may lose all of its investment in a particular contract.
Venture Capital and Early Stage Investment Risk. The Fund’s Venture capital and early-stage investing are inherently high risk activities, marked by the potential for significant losses. Venture capital backed startups are subject to a high rate of failure, meaning investors will lose all of their capital. The percentage of companies that survive and prosper can be small.
New Product Development and Technologies Risk. Certain of the Fund’s investments will be in companies in the technology industries. The specific risks faced by such companies include rapidly changing science, technologies and consumer adoption; and products or technologies that may quickly become obsolete.
Competition Risk. The marketplace for investment exposure to private, venture-backed companies has become increasingly competitive. Involvement by financial intermediaries has increased, substantial amounts of funds have been dedicated to making investments in the private sector, and the competition for investment opportunities is at very high levels.
Minority Investment Risk. The majority of, if not all of, the Fund’s investments are expected to be fixed pre-paid forward contracts for minority stakes in the private issuer. Such minority stakes will have neither the control characteristics of majority stakes nor the valuation premiums accorded to majority or controlling stakes.
Limitations on Ability to Exit Risk. The exit opportunities from the Fund’s investments may be limited or timing with respect to these exit mechanisms may be inopportune. As such, the ability to exit from and liquidate portfolio holdings may be constrained at any particular time.
Liquidity Risk. The Fund invests in illiquid or less liquid investments or investments in which no secondary market is readily available. Illiquid investments frequently can be more difficult to purchase or sell at an advantageous price or time. An illiquid investment means any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. Judgment plays a greater role in pricing these investments than it does in pricing investments having more active markets, and there is a greater risk that the investments may not be sold for the price at which the Fund is carrying them.
Counterparty Risk. The Fund may invest in securities that will be privately negotiated with a counterparty in the over-the-counter market. The Fund’s counterparty risk is heightened because the counterparties with whom the Fund expects to transaction are individuals.
New Fund Risk. The Fund is a recently organized management investment company with no history of public trading.
Definitions
Unicorn company: (i) a start-up private company that receives significant funding from venture capitalists and has a valuation of over $1 billion. Unicorn companies are characterized by innovative and scalable business models and may be viewed as disruptors, creating new markets or revolutionizing existing ones.
2 and 20: Two and twenty (or “2 and 20”) is a fee arrangement that is standard in venture capital private funds. Two refers to the standard management fee of 2% of assets annually, while 20 means the incentive fee of 20% of profits above a certain threshold known as the hurdle rate.
The Fund’s expense ratio as of the latest prospectus is .95%.