Opening the venture capital asset class to more investors
The venture market has consistently outperformed the NASDAQ. While you can invest in a NASDAQ ETF, a similar venture ETF doesn’t exist. Introducing the Equitybee Venture Portfolio Fund, created to access the venture market through an index-like strategy.
Using its proprietary, data-driven model, the Equitybee Venture Portfolio Fund offers a highly diversified investment portfolio of 100+ later-stage startups, backed by some of the most successful VCs in the US.
Research has shown that a minimum 30% allocation to alternative assets, over the past 30 years, would have increased returns and decreased risk for investors.* Within alternative assets, venture capital has been the top performing asset class for over a decade,** with top quartile VCs achieved a median IRR of 27% for the vintage years 2010 - 2020.***
*Source: Morgan Stanley Wealth Management, Daniel Maccarrone, Co-Head of Global Investment Manager Analysis, Wealth Management
**Source: J.P. Morgan Asset Management, Guide to Alternatives, Slide 11
***Source: Pitchbook, Yahoo Finance as of Q3 2023.
Past performance is not indicative of future success
The VPF aims to generate top-quartile venture performance from an already high-return asset class.
Data-driven investment strategy
Dynamic portfolio construction removes the human biases that can impede traditional investment strategies.
Broad exposure across 100+ startups
Diversification mitigates the risks associated with sector-specific downturns to reflect returns across the full range of verticals and technologies.
Focus on late-stage startups
More stable business models and proven track records, but at earlier valuations. Reduced risk of early startup failures, and shorter investment cycle with reduced time to liquidity.
Discount to 409A
Invests via funding employee stock options priced at a steep discount to the fair market value. This ensures that only structurally in-the-money offers are included in the fund.
The top quartile of venture funds has consistently outperformed traditional capital markets like the NASDAQ.
Equitybee’s proprietary model leverages multiple data sources, encompassing 24 years of VC return data, based on more than 10,000 data points, across more than 4,600 unique startup companies.
We pinpointed the optimal asset allocation, by considering both the varying failure rates of startups, and the shortened time to liquidity after each funding stage.
Equitybee has stress-tested the model through various methods, including 20,000 simulations and numerous sensitivity analyses.
Access to virtually any startup
Focusing on employee stock options provides unparalleled access to pre-IPO companies.
Discounted entry price
In the past five years, the average discount was 31%* from the current 409A valuation, at time of investment.
*Source: Equitybee proprietary data
Proven track record
Equitybee has helped fund the exercise of stock options in over 700 startups, returning an average of 55.5% IRR for investments that achieved liquidity.**
Strict due diligence
Equitybee’s subsidiary, EquityBee Securities, is an SEC registered broker-dealer and FINRA member. Learn more about the role EquityBee Securities plays here.
** Past performance is not indicative of future results. 55.5% net IRR represents all fully realized investments across the Equitybee platform, including US and Israel markets. Investors should be aware that these returns were primarily achieved during favorable market conditions. The Israel market reflects offers from June 2018 through December 2023; the US market reflects offers from March 2020 through December 2023. Net IRR is shown net of all applicable fees for the respective market. This performance data does not represent any investor’s portfolio or any model portfolio. IRR figures are calculated for each transaction into an offer on the Equitybee platform from the date the investor's funds were received through the distribution date of proceeds, if any. If the distribution date was less than one year after the invested date, the IRR represents an unannualized return. For distributions one year or more after invested date, IRR is annualized. Data quoted excludes partial returns of invested capital, e.g., tender offers for a portion of covered securities, and investments which have not experienced a liquidity event. As of December 31, 2023, approximately $100 million has been invested on the Equitybee platform; 16.3% of invested capital has experienced a fully realized return, 83.6% of invested capital is unrealized or partially realized.
Equitybee is not affiliated or associated with, or endorsed by, any of the companies mentioned herein and the information included has not been checked or confirmed in any way by the same companies. All service- or trademarks are the property of their respective owners. Sample portfolio companies are for illustrative purposes only; holdings for any VPF will differ based on availability.
