The startup world moves fast, so if you want to stay ahead of the competition, you need to have the best possible tools at your disposal.
Saket Jain recognized this need when he decided to create the first-ever customizable startup fund, which combines the best parts of deal-by-deal investing with the simplicity of a traditional fund.
In this blog, we’ll outline some of the key problems a customizable fund can solve for startup investors, enabling them to drive efficiency, reduce costs, and maximize growth opportunities.
Simplifying PPMs: A Major Pain Point
Many first-time capital raisers will choose the deal-by-deal model because it’s more affordable for your first deal than a traditional fund, and it gives them a higher level of flexibility.
However, deal-by-deal fundraising requires you to file a separate PPM for each investment deal, resulting in significant administrative overhead, legal complexities, and expenses.
The customizable fund presents an exciting alternative, allowing fund managers to include as many deals as they like under one PPM, all while reducing overall costs and giving investors the opportunity to select the deals they want to participate in. In this way, the customizable fund truly gives the best of both worlds for fund managers and investors.
Real-Life Application: The World’s First Customizable Startup Fund
When Saket Jain — a high-performance business coach, leader, and seasoned investor — decided to venture into the world of healthcare technology startups, he knew he’d need to think strategically about the capital raising model he chose.
Having successfully raised capital for real estate investments through syndications, Saket recognized the need for a more cost-effective approach for his new startup fund.
Inspired by the possibilities of the customizable fund model, Saket launched Scalpel Ventures, a customizable fund focused on health tech startups raising seed rounds and series B and C funding.
In just a few months, Scalpel Ventures successfully closed its first deal, securing significant investment for a groundbreaking company utilizing 3D printing technology to create personalized implants.
As Saket continues to expand his fund and bring in new investment opportunities, he won’t have to take on the expense of filing new PPMs or re-onboarding investors for every deal. With a customizable fund, he’s unlocked a powerful new way to raise capital, faster and more efficiently than ever before.
Harnessing the Power of Collaboration: Embracing the Customizable Fund Community
Beyond their cost efficiency and growth potential, customizable funds also make it easier than ever to partner with other, like-minded fund managers and grow faster together.
Every Avestor customizable fund manager gains access to an exclusive mastermind, and the flexible structure of our customizable funds afford managers the opportunity to partner on deals and even raise capital for each other’s deals.
A New Era of Startup Fund Management
The era of customizable funds has arrived, presenting startup investors with an unprecedented opportunity to transform their operations, drive efficiency, and capitalize on emerging investment prospects.
By consolidating multiple investments into a single customizable fund structure, startup fund managers can streamline their operations, reduce costs, enhance investor flexibility, and unlock new levels of growth.
Are you ready to revolutionize your startup fund management and embark on a journey towards enhanced efficiency and growth with customizable funds?
To learn more about how customizable funds can supercharge your startup deals, schedule a strategy call today. Together, let's shape the future of startup investments.