Partner FundsCashmere FundInsights
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First, Sweater unlocked a new asset class for retail investors: Public Venture Capital Funds. Now we are thrilled to be launching the world’s first platform where qualified partners can launch their own Public VC Funds to their communities, Sweater Members, and the general public.
Our Mission
Sweater believes that anyone should have access to invest in world-changing start-ups. We are the only platform solely dedicated to opening venture capital to the 126.5M U.S. households that can’t invest in Venture Capital funds because of their accreditation status – that’s more than 90% of all U.S. households. We couldn’t be more excited to launch the Sweater Public VC Fund Partner Program to those who share our mission to democratize the asset class. After all, the VC community can shape the future, and the right to shape the future belongs to everyone.
What is a Public VC Fund?
Sweater's origin story is rooted in bringing venture capital access to everyone, and that’s with good reason. Historically, accreditation status barred retail investors access to venture capital. VC funds have been private by design, with the regulation only allowing a limited number of investors (aka Limited Partners) into a fund. Because of this cap on the number of investors, traditional VCs only allow in those that can write very large checks - often over $500k. This has historically limited access to one of the world’s top performing asset classes to only the wealthy.
Limited accessibility may have been a hallmark of the investing world historically. But that’s no longer the case.
Now thanks to Sweater, anyone, regardless of accreditation status can invest in an asset class that has the potential to build generational wealth for as little as $500. Yes, you read that right. Along with that, Public VC funds are fully managed, evergreen and provide intra-year liquidity options for investors. With Sweater’s Public VC Fund Partner Program, retail investors will have access to even more investing opportunities launched by qualified partners in early 2024.
What our Platform can do for Qualified Partners
Our groundbreaking platform for Public VC Funds allows influencers, fintech platforms, celebrities, universities, experienced venture fund managers, and brokerage firms to launch a Public VC fund to their communities where they exist today and optionally list their fund for Sweater’s community.
But how does this work for qualified partners?
The qualified partner brings their community of investors, deal flow, and investment committee, and we handle the heavy lifting of running a Public VC fund.
Sweater will leverage our proven technology by providing a turnkey investor onboarding tech stack, built-in communication tools including educational content and investor relations, and complex compliance expertise and registered fund workflows to operate the fund.
We’re making it as easy as possible to open up your very own Public VC Fund’s to partner communities, Sweater Members, and the general public.
Why Public VC Funds
Everyone should have access to wealth-building opportunities and be able to invest in companies that are shaping our future. Full stop. With this innovative offering, retail investors will have access to more venture funds and active ownership opportunities.
In an environment where companies are staying private longer, retail investors want access to returns from one of the top-performing asset classes in the last 20 years. According to Prequin, venture capital investments have a track record of outperforming the S&P, Russell 2000, Real Estate, and Private Debt. At Sweater we’re helping everyday investors access venture capital investment, and we are prepared to welcome qualified partners to open their own Public VC Funds.
Public VC Funds are a great way for partners to meaningfully engage their communities and harness the power of retail investors to impact the trajectory of private companies. A large contingent of investors can influence portfolio company outcomes by purchasing, promoting, and championing founders and their startups. This supportive ecosystem created by large numbers of individual investors is part of what makes Public VC Funds so powerful.
We are looking for qualified Partners who see the opportunity to meaningfully engage their communities and power the next generation of companies they are passionate about.
We’re continuing our mission to throw open the elusive gates to venture capital for retail investors and now qualified partners across the United States. For more information or to contact our team, please click here.
