Alumni Ventures: Smart, Simple Venture Investing Now Accessible to Individual Investors
MANCHESTER, NH / ACCESSWIRE / January 9, 2023 / Until recently, venture capital investing was only available to institutional investors like pension funds or endowments. The few individual investors able to access venture capital investing were typically very wealthy with access to family office investment teams. As a result, this powerful tool for growing wealth and improving portfolio performance was not considered by individual investors as a viable option to diversify their portfolios.
Alumni Ventures, one of the most active venture capital firms in the world, has opened the world of venture capital investing to individual accredited investors. Accredited Investors are individual investors with an income of $200,000 (or $300,000 with a spouse) or who have a net worth of over $1M. There are currently more than 10 million accredited investors in the United States according to the Federal Reserve. Giving accredited investors from all walks of life a chance to get involved in venture capital with investment amounts as low as $10,000, Alumni Ventures helps accredited investors build a venture portfolio that suits individual needs and interests.
With a goal of onboarding the next 25,000 individuals into this formerly hard-to-access venture asset class, Alumni Ventures is working towards their mission of providing professional-grade venture portfolios to individual accredited investors. This is a product offering that had historically only been available to institutional investors and ultra-high-net-worth individuals.
“I strongly believe that venture capital should be considered for every sophisticated portfolio - not just for endowments and billionaires. As Alumni Ventures has built systems and reach, we can further lower our minimums and become even more accessible, and now, for as little as $10,000, accredited individual investors can have a large, diversified portfolio of venture capital investments,” cites Mike Collins, Founder & CEO of Alumni Ventures.
A minimum investment is the smallest dollar or share quantity that an investor can purchase when investing in a specific security, fund, or opportunity. With a goal of reaching a new type of investor by setting lower investment minimums, Alumni Ventures is helping make it more attainable for lower-asset individuals to start building wealth through venture capital with the following investment minimums:
- Existing Alumni Funds: $25K (previously $50K)
- Total Access Fund: $25K (previously $50K)
- Focused Funds: $10K (previously $25K)
Alumni Ventures Unlocks the Power of Their Differentiators
When reviewing investment options, potential returns play an important role in the decision-making process for accredited individual investors. However, it can be difficult to compare the relative merits of different asset classes that have different risk profiles and performance metrics. Alumni Ventures’ diligence and investment process are focused on accessing deals led by established venture capital firms. According to data from Cambridge Associates, investments made by top-quartile venture capital firms produced an average IRR of over 25% over the last 25 years, performing about ~2.5x as well as the public market equivalents over the same time period.
In addition to the potential for high returns, Alumni Ventures is committed to providing top-tier products and services to investors. The firm differentiates itself by democratizing venture capital and bringing the entire community to the table, providing individual accredited investors access to investment opportunities that would otherwise be out of reach. With a community and powerful network of 600,000+ subscribers and 150+ full-time employees working on the investor’s behalf, the Alumni Ventures team builds portfolios, diversified by sector, stage, geography, and lead investors.
Venture capital has long been an integral part of the business world, providing vital funding for startups and small businesses, and now, more individuals than ever before have the opportunity to get involved. As venture capital investments continue to deliver strong returns, with strong potential for growth in the coming years, current and future individual accredited investors now have the chance to explore and invest in new and potentially profitable endeavors.
About Alumni Ventures
Alumni Ventures offers accredited individuals access to network-powered venture capital - a key asset class missing from the portfolios of many sophisticated investors.
SOURCE: Alumni Ventures
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