We often talk to people who want to start a fund but aren’t sure if they can afford the upfront costs. But did you know you can actually start your customizable fund for free?
Becoming a successful fund manager has never been easier with Avestor’s revolutionary customizable fund model!
In the past, funds could cost as much as $50,000 to start — and unfortunately, many people are still paying this much for traditional blind pool funds. This is an enormous barrier to entry for many people, so we knew we wanted to build a fund model that was more accessible to any capital raiser.
Not only have we significantly brought down the cost of starting and managing a fund, but we’ve also set our customizable funds up in a way that allows you to write off your launch costs as a business expense — in essence, starting your fund for free.
Here’s how it works:
1. Secure Financing to Launch Your Fund
Starting a customizable fund will require some upfront capital for setup — don’t worry, you’ll earn it back later — but if you don’t have the liquidity to pay out of pocket, we have a financing option to make it possible.
And if you already have the capital you need to cover the fund’s initial setup costs, you can skip to step 2.
Simply apply for funding and then shop around on the platform to choose the terms that best suit your needs. Terms range from 24-60 months, there are zero pre-payment penalties, and rates are competitive with similar financing products (Note: for your best chances of being approved, request a loan that’s 25% or less of your annual W-2 income).
2. Launch Your Fund
Once you’ve secured capital, it’s time to start your fund. Avestor charges an initial setup fee, and then you’ll pay a small monthly rate based on your equity under management.
After setup is complete, Avestor’s easy-to-use platform allows you to add your first deal and start onboarding investors at any time. And the customizable fund model gives you unprecedented flexibility to scale your fund and give investors the top-tier experience they’re looking for.
3. Write Off the Setup Fees as Capital Raising Costs
Now that you’ve launched your customizable fund and can start making money, you can pay back your loan with the earnings from your fund.
You can also write off the setup fees as part of the capital raising costs on your first deal.
In this way, you’re essentially starting your customizable fund for free!
Ready to get started? Our team would love to connect with you. Fill out your financing application today, and we’ll be in touch with next steps.