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.
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 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!).Excited to see what’s next for Sweater. Taking a “John Bogle” Index Fund / ETF approach to VC is a long overdue innovation and opportunity to democratize private equity and diversify personal portfolios. So glad Sweater put such a focus on making a good app. Only complaint is that Sweater does not yet work with account aggregators like MINT from intuit. Means I have to add my Sweater investments manually so I know my financial status in real time and in detail.
I did not know much about Venture capital until I ran into this fund. I’m always looking for efficient ways to invest and diversify my portfolio and the sweater fund breaks it down in a simple way to understand with short informational videos. They are transparent with what you are getting into and the startups that will be in the fund. Overall the app is simple to use and simple to input automatic reinvestments for long term goals. They do have biannual redemption windows if you want to sell of your shares keep that in mind and don’t invest money that would you need in the short term. This fund is definitely for long term investors.
Developer Response
Thank you for your review! So glad you find the educational content valuable.I love that I can now diversify my personal portfolio into Private Equity. What Sweater is doing for the “common investor” is awesome and their transparency is refreshing. The app is also easy to use and Sweater’s staff are quick to help if you need it. I’m looking forward to seeing what they do next.
I’ve never invested in VC before and found that this was a great way to start. The founders provide videos as to how the world of VC works and what different terms are used like NAV. The app has good functionality. No complaints there.
Before sweater, I could only invest in Reg-A and Reg-cf seed rounds and had to research myself to determine the startups to invest money in. With sweater, the access to top tier startups without being an accredited investor has opened paths for another investing avenue. Thanks to Jesse for creating this.
As always nothing is risk free but with a seasoned team to vet the startups, it feels a lot better than direct investments into startups.
Super easy app to navigate. A wealth of information guiding you to make sure you understand before moving forward.
The education videos and back story or provided was instrumental in my decision to move forward.
I’ve been telling everyone that know about Sweater! This is what leveling the playing field for all of us means!
Highly recommend!!
I had heard of Sweater a few months ago and was instantly excited about the potential of the idea. When it launched I was sure to get involved as soon as possible.
The idea is fantastic, team is great and the App interface is easy to understand. I have weekly reoccurring deposits set and excited to see what will happen over the coming weeks, months and years!
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