The Fund's Investment Thesis
This is a 10-year venture fund, with a focus on financial returns and portfolio diversification for investors, as well as the portfolio’s potential for positive social impact. We believe the next 12 months are going to prove a very positive investing environment for organizations aligned with an emerging post-COVID-19 world. AVG is in an excellent position to identify, access, and create a portfolio of such venture investments.
Permanent Change. With the world’s greatest minds focused on finding a solution, we hope and expect a vaccine for this virus will be developed within a year or two. However, we believe this pandemic has changed our world forever. Trends will accelerate. Whole new markets will emerge. Existing industries will be reshaped, and new approaches created as the risks inherent in our pre-COVID world (dependence upon global supply chains, customer behaviors, centralized workforces, the nature of selling, etc.) have been made transparent. Out of this, we expect to see dozens of new market leaders created. We think it’s an excellent time to be a venture investor focused on investing into this new reality.
Forged by Fire. We also believe the best ventures will emerge from this pandemic and the accompanying recession even stronger. Talent will be more accessible; money and other key resources will be directed to winners. We are already witnessing this in our portfolio and in deals we’re reviewing.
AVG in This Environment. We are among the most nimble and entrepreneurial VC firms in the industry—as witnessed by the speed at which we’ve developed this fund. Most traditional venture funds are now preoccupied with triaging portfolios and managing endowment relationships—who, with public markets down significantly, suddenly find themselves overallocated to VC. We also operate as an entrepreneurial startup, and our organization is designed to innovate, problem solve, and evolve quickly to meet the needs of smart, sophisticated retail investors. Our Post-COVID Fund reflects both our core convictions and your support (several of you have asked for us to offer this fund).
Our Experience in Downturns. Finally, as veterans of past downturns, we have observed market disruption before, and think certain fundamentals are likely to repeat:
- Established VC firms have capital they must invest: quality deals will get done, but minority co-investors like AVG can be increasingly picky.
- The ability to get into exclusive deals increases; pricing and terms become more reasonable.
- The more resilient, adaptable companies survive and even thrive. Microsoft, FedEx, Uber, Square, WhatsApp, Roku, Square, Pinterest, Slack, and Groupon were all launched or accelerated their growth in a downturn.
- Disciplined slow money—like AVG’s Post-COVID Fund, with its core investing principles and processes—has numerous advantages. Emphasis on quality over quantity, adaptability, and process-driven decisions are more valuable than ever.
Open Now Through June 30, 2020
This fund will invest in ventures that are both promising businesses and either directly or indirectly address the multiple impacts of the virus. Likely target sectors include healthcare, technology, services, data monitoring and analysis, learning, payments, communications, entertainment, and more.
- Promising deals sourced, vetted, and sponsored by one of our Alumni Fund investment teams.
- Our Office of Investing will determine if the deal meets our Post-COVID Fund lens.
- Anticipated to directly or indirectly provide solutions caused by society-disrupting diseases such as COVID-19.
- Consistent with accelerating trends. To name just a few, we see likely developments in digital and virtual/remote entertainment, payments, communication, learning, healthcare, etc.; health monitoring and treatment; big data and AI; early risk assessment and analysis; self-service models; flexible local manufacturing and scalable 3-D printing; robotic and automated services; etc.
- Address yet unforeseen and unintended consequences of this worldwide disruption.
- As we do with all AVG funds, we’ll also diversify the portfolio across stage, sector, geography, and lead investor to help mitigate risk.
I'm interested in the AVG Post-COVID Fund
How It Works
Data-driven and process-based investors
Deal Sourcing and Diligence
- ~50 investment professionals sourcing deals
- Supplemented by intelligence from our network of 500k subscribers and community members
- Data-rich and process-based diligence and decision making with rigorous deal scoring
- Co-invest alongside established venture investors
- Every deal sourced by one of our Alumni Funds is screened to determine if it fits within the Post-COVID Fund investment mandate.
- AVG’s centralized investment team, led by our CIO and Office of Investing, select investments from the potential deals to optimize diversification by stage, sector, geography, and lead investor.
- The portfolio will be constructed over a period of ~9-18 months and represent a mix of deals sourced and sponsored by our Alumni Funds.
Smart, Simple Venture Investing
Open to All Accredited Investors
- Portfolio consists of ~20-30 companies, diversified by stage, sector, geography, and lead investor within the investment mandate
- Venture portfolio professionally managed by our experienced investment professionals
- Co-invest alongside established venture investors
- $25K minimum investment; $3M maximum investment
- Online signing process takes just minutes
- White-glove support from our Investor Relations team
Post-COVID Fund Example Deals
Current AVG portfolio companies that exemplify the types of deals this fund would consider
Our Secret Sauce
Our 500k+ subscribers and community members
500k subscribers and community members help source deals, evaluate, and assist portfolio companies
ONE OF THE MOST ACTIVE VC FIRMS
AVG was recognized by PitchBook as the third most active VC firm in the U.S. in 2019.
Invest in deals most individuals never know about or get access to.