aVenture Announces Plans to Create Venture Capital Platform Available to Everyone
SAN FRANCISCO–(BUSINESS WIRE)–#aVenture—aVenture, a new U.S. based fintech startup, today announced plans to launch a platform that makes venture investing available to the public. The aVenture platform connects investors with experienced founders and fund managers by making venture capital funds available as a public-private crossover fund.
The private venture investment market has been growing substantially over the last 15 years, including nearly a half trillion dollars invested in U.S. startups in the last two years alone. This is against the backdrop of fewer companies going public and more going private via private equity-backed deals.
aVenture is being built to bridge this gap, creating funds that can be purchased and redeemed using aVenture’s open platform. “I believe investors are missing out on an asset class that has become extremely important, one that has historically provided outsized returns and added diversification benefits” said William Callahan, chief executive officer and founder of aVenture.
“They’re missing out because there is no easy way for investors to responsibly invest in private assets today in a way that’s properly diversified and liquid with less than $10 million, but aVenture changes that”, explained Mr. Callahan.
The platform makes this possible by providing the infrastructure for private fund managers to offer their funds openly, instead of in short windows that tie up investor funds for 10 years or more. Fund managers using aVenture can offer accredited and non-accredited investors the ability to invest in a public-private crossover fund they manage on aVenture that can offer potential liquidity through periodic redemptions.
Potential redemptions and liquidity in private funds are made possible by aVenture’s private valuation technology and processes for fund managers on the platform. “We knew just how important valuation would be in making this possible, and that’s why we’ve been investing substantial resources in supporting fund managers’ valuation procedures in a way that hasn’t been done before” said Rob Nock, who leads partnerships for aVenture.
“Since we started, we’ve always envisioned aVenture as a platform that brings the rigor of institutional investments with the convenience of retail mutual funds” said Austin Yoshino, who leads growth strategy for the company. “aVenture makes it possible to broadly diversify a portfolio across different venture investments, including by sector, geography, size and stage of company, and fund manager”.
The aVenture platform will be available to select investors in early 2023. Investors and fund managers interested in using the platform should join the waitlist at aventure.vc for potential early access.
About aVenture: aVenture is a San Francisco, California-based fintech seeking to make liquid venture capital investing available to everyone. Their proprietary platform connects experienced founders, fund managers, and financial advisors all with investors seeking exposure to private investing. aVenture offers public-private crossover funds that are open and continuously offered, instead of raising investor funds once and closing the fund for a decade or more. Learn more and join the waitlist at aventure.vc.
This press release is for informational purposes only, and is not a solicitation to invest or for any financial products or securities available for investment. Prior to advising fund(s) on the aVenture platform, aVenture Investment Company and/or one or more of its affiliates (including aVenture Investment Technologies, LLC and aVenture Investment Management, LLC, collectively herein described as “aVenture”) are anticipated to be required to register as an investment adviser or as an exempt reporting adviser with the SEC or a state equivalent agency. Prior to such registration, aVenture does not provide investment advice and does not offer any securities or financial products, publicly or privately, for investment.
Past results may not be indicative of future returns, and investing in stocks, especially in private stocks, involves substantial risk. Diversification may help reduce risk, but the risk reduction is not guaranteed and investors can still experience negative outcomes.
Given the illiquidity inherent in private assets, a fund that seeks to offer periodic partial liquidity to shareholders may be unable to meet all or some of the withdrawal requests made by investors. Investors should not expect to be able to sell shares other than through a fund’s redemption policy, as the funds will not be listed on any securities exchange and a secondary market is not expected to be developed. Investors should only invest in stocks after they have sufficient cash reserves set aside for liquidity and emergency purposes.
Investors in private companies should have additional liquidity available in cash reserves because an investment in private shares, even those with a periodic redemption policy such as those offered by aVenture, may still be illiquid, especially during times of market decline or duress. There is no guarantee that fund holders will be able to sell some or all of their shares tendered in a periodic redemption window.