Seeding the Future: Why Seed Investing is Attractive
December 23, 2020 | Ashley Brindamour
Our “Seeding the Future” series explores trends, opportunities, and companies from the seed and pre-seed venture world. This is the investment focus of AVG’s newest Basecamp Fund. The fund closes at the end of December! Click below to learn more.
AVG’s Basecamp Fund closes to new investors at the end of this month. With a total of almost $7.5M and approaching 200 investors, the fund is nearing our $10M cap.
There’s still time to join us in AVG’s Basecamp Fund if you’d like to own a broad, deep portfolio of ~100 pre-seed and seed deals. Book a call now to secure your spot.
Why Pre-Seed and Seed Investing Is Attractive
Difference-making opportunities: Many seed deals don’t survive. But those that succeed can offer outsized returns and impact, with home runs having the potential of 100x or more.
Lower capital requirements: You can invest in a lot of companies at the seed stage since investments minimums and company valuations are at their lowest.
Staying in is better than getting in: By investing early and securing participation rights, investors can improve their ability to participate in later growth financing.
Basecamp Fund Venture Club
In addition to building you a portfolio of ~100 diversified investments, we offer fund investors a one-year membership to the Basecamp Venture Club. There you can opt into single investment opportunities, learn more about seed investing, and keep up to date on your portfolio companies. If this sounds interesting, please click below to get in touch.
What’s Different About AVG’S Approach
- A large seed portfolio: Venture capital is a Power Law asset class, meaning that returns are driven by a small number of deals. The AVG Basecamp Fund invests in ~100 seed deals, also reserving 25% for follow-on rounds in the portfolio’s most promising investments.
- Diversification: Diversifying can help minimize risks. The AVG Basecamp Fund diversifies investments across sector, geography, and lead investor or syndicate.
- Many eyes and large networks: Seed deals are often assembled among private groups and along social networks. It takes tuned-in professionals and a connected, respected team to access good opportunities. We employ a team of eight full-time professionals, located in key venture hubs, to source investments through their networks. This team also collaborates with other AVG colleagues (almost 50 investment professionals), as well as our networks of investors and community members.
- Co-investing with experts: AVG operates strictly as a co-investor. Because our portfolios are so diversified, we can’t be experts in all fields. We draft on the expertise of the lead investors, while doing our own diligence in assembling your portfolio.
- Keeping it simple and accessible for our investors: We build your portfolio over ~12-15 months. You write a single check (no hidden fees or chargebacks) and receive a single K-1. We also make the fund accessible to individual accredited investors, keeping the minimum investment at $25K.
AVG’s Basecamp Fund offers investors a portfolio of ~100 pre-seed and seed investments diversified across sector and region. Approximately 25% of the fund is reserved for follow-on investments. Minimum starts at $25K. The fund is now open! Click below to learn more.