Venture capital is a high-returns asset class and performance is only loosely correlated to the public market. Sophisticated investors like endowments and wealthy family offices typically allocate 5-15% of their portfolio to venture. Since VC returns aren’t strongly correlated to the stock market and can perform well when other asset classes don’t, it’s also a smart way to diversify your portfolio.
The AVG Select Fund offers you a smart, simple way to invest in a diversified venture capital fund. We provide investors with a selection of 20-30 venture investments from across all our alumni portfolio and focused funds and routinely co-invest alongside top professional investors to minimize risk and maximize potential gains. Selections are programmatically made to correlate with the diversification of the venture industry. The investment minimum is $50K.
The alternatives are not great. Your accountant, broker, classmates, or friends might also show you the occasional one-off deal. Or you can join your local angel group or online crowdfunder which requires access, time, expertise, and due diligence expertise to assemble a solid portfolio.
When the funds experience a liquidity event, we send distribution checks immediately.
Alumni Ventures Group is the management company for all our funds. Our actively managed funds invest in approximately 150-200 unique deals per year. The AVG Select Fund programmatically selects from that deal flow a portfolio of 20-30 deals per year that correlates to VC diversification trends.
Please visit the AVG website to see a current list of our investments.
The SEC defines an accredited investor as someone who (a) has earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR (b) has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
Our funds source investments through our team’s research, referrals by other AVG funds, via our 100,000+ community of supporters, and through collaborative professional relationships with other VC and PE investors. Currently, we review about 30-35 investment opportunities for every one that we add to an AVG fund. From these, 20-30 are chosen each year for a spot in our Select Fund.
The AVG Select Fund chooses deals from the overall pool of deals done by AVG Funds, programmatically picking deals that correlate with the diversification of the venture industry. Our funds start with a broad funnel, allowing us to choose the best deals that we see. Most funds meet monthly with an Investment Committee. Key considerations for deals: market opportunity, deal terms, traction, team—all the same venture investing fundamentals apply here.
Our fees are industry standard: a 2% annual management fee used to cover business costs each year of the 10-year life of the fund and 20% of the gains on an investment. There are no additional fees or expenses associated with investing through us. If you are investing via a trust or retirement vehicle, your account managers will likely charge you some fees for setting up and maintaining those accounts.
Simply put: Low Friction. Large Rolodex. We offer a streamlined process and rapid funding. We don’t take Board seats or negotiate terms, and can offer the connections and resources of our large community.
Lead investors appreciate our involvement for several reasons: Our checks are helpful but not competitive; we fund quickly with little fuss, if we decide to do a deal. Finally, we can help them by sharing deals and by providing important contacts and relationships to the portfolio companies.
Our investment minimum is $50k; the maximum is $1M.
No. With this fund, we draw from the overall pool of deals completed by AVG funds, programmatically selecting a portfolio to correlate the diversification of the venture industry. Our algorithm is regularly evaluated by our team of analysts, computer scientists, and programmers, incorporating data from trusted industry sources to provide a portfolio that closely corresponds to industry investing trends.
We provide a K-1 during March each year.
You can access information about your portfolio 24/7 via our secure online Investor Portal (this usually takes place 3-6 months after the fund closes). There you’ll find details about portfolio composition, valuation, statements, company updates, and your tax docs.
We make venture investing smart and simple. Our AVG Select Fund provides simple, broad exposure to this attractive asset class, and the investment minimum of $50k is modest compared to alternatives.
Entrepreneurs appreciate our streamlined, responsive process. In as little as 2-6 weeks, we can move from initial conversation to investor, with little extra work on their part. In addition, we don’t dictate terms or take Board seats. We our extensive network connections which can be very helpful.
AVG Select Fund draws from the overall deal flow of other AVG funds. They look for a strong lead investor with expertise in the sector, experienced team, market opportunity, moats, traction, attractive deal terms, and portfolio diversity for our funds. From the AVG deals completed, the AVG Select Fund programmatically selects investments that correlate with the diversification of the venture industry, providing an index-like, diversified portfolio.
Our investments are generally from $100k-$500K, with the opportunity for up to $2M or more if sister funds participate or the deal gets syndicated.
Please visit the AVG website to learn more and get in touch.
The Venture Fellow Program is designed for distinguished young professionals who want an inside look at venture investing and entrepreneurial careers. In exchange for a modest weekly time commitment helping the funds do outreach and research deals, Fellows get a valuable experience and professional entry point into VC. The work is remote and on your own schedule. For more about the program, go to the Alumni Ventures Group Venture Fellow Program page.
Yes. Please visit the AVG Resources Page to learn more.
The Resource Connector is a self-service database of alumni and fund investors who have listed themselves or their businesses as resources for entrepreneurs. Please visit the AVG website to learn more.
Alumni Ventures Group is developing a program with introductory courses to VC for interested investors. The courses will be free, open to all, and aimed at helping investors better understand the asset class. Please visit the AVG website to learn more.
We publish monthly newsletters. We also offer a mobile app, with regular updates on our portfolio companies. In addition, we have a podcast which introduces listeners to our portfolio companies, fund managers, other professional VCs, and more. Please visit the AVG website to learn more.