Investing into Sweater Inc. means that you will own a piece of the company. This is not a liquid investment, which means you can’t sell it to anyone else. You will get your investment back if Sweater is either acquired or files for an IPO. There is also a chance that Sweater fails and you lose your investment. Sweater is a huge opportunity, but there is significant risk involved. Invest only what you can afford to lose. 

Yes, Sweater will launch additional sister funds in the future. It is expected that these future funds will have specific vertical focus, such as ClimateTech or SaaS. The timeframes for these additional funds have not been set, but they are tentatively expected to happen in the next 3-5 years. 

SAFE stands for Simple Agreement for Future Equity and is an investment mechanism that helps investors gain an ownership stake in startups. It was developed by the world renowned Y-Combinator in an effort to simply and speed up the investment process. An investment into a SAFE today will convert into an equity position at Sweater’s next VC-led investment round. 

It takes a long time to build and grow a company. Investing into a private startup in its venture-capital-backed journey is typically a 7-10 year journey. Sometimes it can be shorter, but sometimes it can be longer as well. Make sure that the money you invest can be “locked up” for a long period of time, and often these investments fail. Do not invest what you cannot afford to lose. 

Yes, Sweater manages the SAFE and all the associated legal and compliance workflows associated with your investment. You can expect to hear from Sweater in the future as relevant events transpire over the life of the company. 

The minimum investment for this traditional SPV hosted by Canopy is $5,000 with no cap.

As the founders at Sweater, we recognized that we have a unique window of opportunity to allow you to invest alongside our institutional investors. We may never have this opportunity again as it is not industry standard to offer a RegCF alongside VC funds. We hope you can see the uniqueness of the opportunity and determine whether or not it is a good fit for your personal portfolio.