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Written by OurCrowd

Never before has startup investing been this accessible. Global venture funds are now open thanks to the model built by OurCrowd. 

Below, our Funds leadership explains in more detail how venture funds work, why OurCrowd is offering this type of investment to investors and how to get involved. Watch the four-part series, Investing in Venture Funds with OurCrowd. Access the four videos in the playlist by clicking the right side of the video player, or watch in-line below. 

 

 

Review a summary of each video below. 

Part 1: Why Does OurCrowd Invest in Venture Funds?

Why did OurCrowd get into the fund investing business? OurCrowd was set up to disrupt the fund model. In 2013 when OurCrowd was founded, it was unique in offering the opportunity to invest in startups directly, bypassing fund managers and allowing investors a greater level of access and transparency than they'd ever had before. As OurCrowd matured as a company, it realized its goal wasn't only to disrupt the fund model but that there are actually really interesting ways to join with the funds, an important part of the venture ecosystem. To be able to offer fund products to our investor base is something we saw demand for and realized held worthwhile opportunities for our investors.

Learn more about why OurCrowd invests in venture funds: 

 

Part 2: Venture Funds: The Facts and Benefits

While there are different ways to invest in private companies, there are great benefits in writing one check to a pre-selected management team to invest on your behalf in a diverse portfolio of investments, based on an investment thesis of your liking. Investments made through venture capital funds are categorized as potentially high-risk high return investments; essentially allowing investors access to investments in high growth unlisted companies. When committing to invest in a VC fund, investors get the benefit of investing in a diverse portfolio of investments made by a management team specifically selected by the investors to invest on their behalf. 

Learn more about the type and nature of these investments:

 

Part 3: Why Some Investors Choose the Fund Model

From the investor's perspective, the advantage of investing in a fund is that it provides immediate diversification with one check. Because a fund typically has a portfolio of several companies, it provides true diversification, and helps mitigate risk. Another reason that we find our investors are interested in the fund model is that as opposed to on the platform, where they are picking individual startups to invest in on their own, the fund model allows them to choose a  fund manager who is a professional with deep industry experience to choose investments on their behalf. Truly democratizing investing, OurCrowd allows its investors to invest in a fund with as little as $50K, and offers diverse investment opportunities from around the world. Typically, the minimum investment for a venture capital fund is $1M or more, making OurCrowd's entry point of $50K truly unique. Investors who invest in funds via OurCrowd pay the same management fee and carried interests, a if they had invested in the fund itself. At OurCrowd, we believe all the stakeholders in our fund investments truly get to benefit from OurCrowd's involvement in fund investing.

Learn more about why some investors choose the fund model: 

 

Part 4: Three Types of OurCrowd Funds

OurCrowd offers its investors three types of funds to invest in: internally managed funds, rule based funds, or third-party funds. These funds range from small micro funds with a very specific sector focus to large Silicon Valley based venture funds with a generalist strategy. By having this wide array of funds, OurCrowd allows investors many different ways to access venture capital opportunities.

Learn more about the different types of funds:

 

 

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