Add Startups To Your Investment Portfolio
Many startups fail, though some make it big and provide meaningful returns to investors. Over the last 30 years, early-stage venture capital returned 22.65% compared to 9.93% for the S&P 500.
Through SeedInvest Auto Invest, every investor can now easily incorporate diversified exposure to the venture capital asset class into their traditional portfolios of stocks and bonds.
Data from Cambridge Associates LLC March 31, 2016 U.S. Venture Capital Index® and Selected Benchmark Statistics Report. The Early Stage Index includes pooled end-to-end returns, net of fees, expenses, and carried interest. Past performance is no guarantee of future returns. 30-year period includes at least two sub-periods of unusually large returns: the 1990s and the most recent few years. Indices are unmanaged and an investor cannot invest directly in an index. Index returns do not reflect the cost of investing in an index. These indexes are not necessarily representative of the companies listed on SeedInvest and do not reflect projected returns.
While early-stage venture capital has historically generated larger returns than both the S&P 500 and Barclays Credit Bond Index over the last 30 years, past performance is no guarantee of future returns. In addition, early-stage venture capital investing has a higher rate of failure, volatility, and less liquidity. Only those prepared for extreme volatility, a lack of liquidity, and the risk of losing their entire investment should invest in early-stage venture capital.
Hassle-Free Diversification
Historically, building a larger portfolio of early-stage startup investments has been correlated with an increased likelihood of generating higher returns. This is because individual startups have high failure rates. In fact, according to a recent Angel Resource Institute Study, 10% of startups have historically accounted for 85% of angel investor returns.
So if you want to add venture capital to your investment portfolio, one of the most important things you can do is diversify. With SeedInvest Auto Invest you can easily build a portfolio of up to 25 highly vetted, early-stage startups.
Curated by SeedInvest
The SeedInvest team is comprised of former investment professionals who helped manage billions of dollars in private investment funds. We conduct multi-tiered, independent due diligence on every opportunity before potentially allowing it to list on our platform. In fact, since inception we at SeedInvest have looked at over 10,000 startup prospects seeking to list on SeedInvest and have historically accepted only ~1%.
SeedInvest’s selection criteria does not suggest higher quality investment opportunities nor does it imply that investors will generate positive returns in investment opportunities on SeedInvest. Learn more about due diligence in the SeedInvest Academy and our vetting process in our FAQs.
Watch Your VC Portfolio Grow with SeedInvest Auto Invest
Automated to make your job easier
When a pre-vetted startup listed on the SeedInvest platform becomes eligible to receive Auto Invest investments, you will automatically opt-in to deals in which you are legally allowed to invest.
Lower investment minimums
With SeedInvest Auto Invest, building a diversified portfolio is easier than ever before. Enjoy investment minimums starting as low as $200 per startup, available only through SeedInvest Auto Invest.
You are always in control
Be as active or as passive as you’d like with SeedInvest Auto Invest. While you will automatically opt-in to offerings that you are eligible to invest in, you can also opt-out of any investment you choose through your Auto Invest Management page.
How SeedInvest Auto Invest Works
Determine your target portfolio size
Choose how much you’d like to allocate to startup investments and tell us a little bit about yourself. Based on that information, we will help you build a portfolio of 10-25 startups.
Set up your account
If you are accepted to participate in SeedInvest Auto Invest you will be asked to set up your account. The account creation process takes place entirely online.
Build your portfolio
Once your SeedInvest Auto Invest account is set up, you will be notified as soon as startups become eligible to receive Auto Invest investments and will begin to automatically build your startup portfolio.
Sound interesting?
Frequently Asked Questions
Investing
- Once your investment account is completely set up and funded, your Auto Invest membership will automatically start.
- When a startup becomes eligible for accepting Auto Invest investments on SeedInvest, you will automatically invest in that company based on your settings.
- You will automatically be notified of each investment and will have until your investment is closed to cancel it if you wish to do so.
If the startup is unsuccessful in raising sufficient funds, your investment will be canceled and your funds promptly returned to your funding account.
You're free to cancel an investment at any time before your investment closes. Just let our team know and we’ll handle the rest.
You're in control. You can pause or restart SeedInvest Auto Invest at any time through your Auto Invest Management page.
New Direction IRA Inc. (“New Direction”) is being used to create custodial trust accounts on your behalf to manage your SeedInvest Auto Invest assets. Your account with New Direction will not be an Individual Retirement Account (IRA) and hence will not affect your regular IRA contribution limits. For more information about New Direction, click here.
Offerings
In accordance with regulatory rules and restrictions, you will automatically be matched with startups that you are legally allowed to invest in. View all current and previously funded opportunities.
Startups conducting their raises under the Reg D or Reg CF offering exemptions must raise at least $250K before they can receive Auto Invest investments. Startups conducting their raises under the Reg A+ offering exemption must raise at least $2M before they can receive Auto Invest investments.
The goal of Auto Invest is to give investors an easy way to diversify their portfolio. If you would like to invest in a specific industry or startup, you can easily do so via the regular investment process.
Funding
A custodial account will be set up for you at New Direction IRA, Inc. (“New Direction”) during the onboarding process. (Your account with New Direction will not be an Individual Retirement Account (IRA) and hence will not affect your regular IRA contribution limits.) This account will hold your dedicated funds for you. Any investment made through your Auto Invest account will be funded directly from your New Direction account.
You can change the amount allocated to your account at any time and as often as you’d like via your Auto Invest Management page. Changing your allocation will not affect any investments which have already been made. Please note: there may be regulatory restrictions regarding how much you can invest into startups based on your financial situation.
We are working with several different payment processors to enable as many investors as possible to participate in Auto Invest. Depending on the payment processor, it will usually take 5-10 business days for your funds to show up in your Auto Invest account.
Per deal allocations cannot be changed when investing through Auto Invest. If you would like to invest a specific amount into a specific company, you can do so by investing via the normal investment process (subject to deal-specific investment minimums).
If there is a company you really like and you want to invest more than your Auto Invest check size, you can simply double down by going to the company's profile and invest through the regular investment process.
