Our equity investing opportunities are open to all accredited investors, as space allows. Not sure if you qualify? Read Who is an Accredited Investor?
In the US, individuals may preliminarily self-certify as accredited investors. Actually investing in a startup, making an investment, however, requires that we receive a letter from a third-party professional (banker, attorney, etc.) confirming your accreditation status. It’s not just us. Every company offering these types of investments must have a third-party verification letter on file for each investor who makes an investment after September 23, 2013 (when the SEC rule went into effect).
When you initially decide to invest in one of our portfolio companies, we will provide you with a checklist and a letter that you can have signed.
For residents in countries other than the US, your government allows you to self certify and invest when you meet the requirements, which vary by country. We will provide the appropriate information for your country’s accreditation during the accrediting process.
VCapital is structured to appeal to serious, discerning investors, including experienced venture capital investors and established angel investors and angel groups looking at startup investment. The minimum investment requirement is $25k.
Why is VCapital’s minimum requirement considerably higher than other firms for individual investors you can find online?
VCapital is not a crowdfunding site. Many of the others are. We are a professional venture capital firm serving serious, discerning, and often experienced investors and groups.
Some of the crowdfunding sites may do well, but we think most will disappoint their investors and the companies they are attempting to support. Here’s why:
- Minimum investment requirements tend to be so small—usually in the $1,000-$3,000 range—that even early-stage deals may require hundreds or even 1,000+ investors. Startups don’t want the administrative headaches of dealing with these large crowds of investors.
- Many sites offer dozens . . . even hundreds . . . of venture options. Truly disciplined screening and due diligence are impossible. These sites are more like investing lotteries than disciplined, venture capital investment opportunities.
- Their overall results are likely to lag behind venture capital firms that are far more discriminating in their investment decisions.
VCapital is a professional venture capital firm run by proven VC professionals, some with over 25 years of venture capital investing and management experience. The team’s long-term track record with prior firms is an average IRR of 29%!
Can I decide in which companies I want to invest?
Yes. You can do this by allocating your investment to specific companies at the time you invest.
We offer two options for the management fee which investors choose at the time of their investment:
- A one-time fee equal to 8% of their initial or follow-on investment, or
- An annual fee equal to 2% of their initial or follow-on investment
In addition to the above management fees, investors are charged a 20% “carried interest” on investment gains.