Best way to get into venture
Love what Sweater has done. Generally you need to write a $250k check to be an LP in a fund. Sweater allows you to get in with just $500 and they open up bi-annual redemptions which is a first for venture. Usually have to wait 5-10 years until there’s a distribution. Low commitment way to dip your toe into venture - highly recommend.A new unique way to invest
Sweater has been a great app. I think it’s important to not put all your eggs in one basket. VC can be risky, but if Sweater does their DD, then these investments should be sound. So far, everything has been great though. One thing I’d like to see added is a historical graph of the changes in NAV share price.Great app, time will tell about the returns
Great app functionality so far. Gives me my daily NAV, education on VC funding, some “disruptor” content for new up and coming companies. If you read the prospectus, the management fees include a large chunk for marketing expenses, which obviously initially I understand is needed to get the kind of reach that is needed to make this a feasible operation. But having expenses potentially over 6% of AUM concerns me long term in eating away at any returns. Hopefully as the AUM grows, these fixed cost percentages will lower and they will build in a performance structure that better aligns both portfolio manager and investor incentives.Developer Response
Thanks for your review! Worth pointing out, one of the nice things about how our Fund is structured, is we actually can NOT have expenses ever go over 5.98%, because our Expense Limitation Agreement prohibits it. In any period where expenses are exceptionally high, Sweater will forego part or all of our management fee (where our revenue comes from) in order to keep expenses at a predictable and reasonable level for our investors. It's true that investing in VC has higher costs than some other asset classes, like an index fund of publicly-traded stocks for example, but the historical returns on private companies balances out that cost across most time periods, which can make it a good addition to a well-balanced, diversified portfolio for a lot of folks (please consult a financial advisor if you're wondering whether it's a good fit for you!).