Vintage Details, Pricing Events, and Exit Information

Performance of All Alumni Ventures Funds, as of June 30, 2021

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Partial Vintage
2021 reflects partial-year data only, as Funds launched in 2021 had only partially completed their deployment as of 06/30/21.

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NOTES

1. Fund Vintage is defined as the year in which a fund’s first investment was made.
2. Total Investable Capital is the capital available to invest after management fees for the 10-year life of the funds have been removed.
3. Invested Capital is the capital that the AVG funds invested through 6/30/21.
4. Current Valuation reflects the fair value of the investment as determined in good faith by AVG according to its valuation policy. Unrealized investments are priced at cost and then re-priced upon consummation of an arm’s length transaction or written off as a total loss. Relating to Exits, it represents the market value as of the last day of the period of any owned publicly traded investments, escrow(s), and/or estimated proceeds receivable at a future date. Current Valuation of Exits does not reflect any potential contingent consideration that could increase gains received on the investment.
5. MOIC (Multiple on Invested Capital) is equivalent to the multiple of return realized gross of fees and equals (Current Valuation + Amounts Returned) / Total Investable Capital. Reported performance would be lower if the impact of fees were reflected.
6. Cash-on-Cash Return is equivalent to the multiple of return realized by an investor on their investment after the impact of management fees has been taken into account and equals (Current Valuation + Uninvested Cash + Amounts Returned) / Total Paid-in Capital. Note that the Uninvested Cash for Fund Vintages in years 2014-2017 was zero and for 2018 – 2020, the amounts were $8,065,801, $22,910,665 and $33,394,118, respectively. Reported performance would be lower if the impact of potential performance fees were reflected.

 

 

Interpreting the Data

Considerations for you as you evaluate these numbers: This annual performance data reflects the aggregated performance of every AVG Fund which began investing in each year. Individual fund returns may be higher or lower than the aggregated performance. All AVG funds are materially different from one another, whether due to investment focus, alumni connection, vintage, investor base, or other factors.

Current Valuation, MOIC (Multiple on Investable Capital), and Cash-on-Cash Return are metrics describing the total “paper valuation” of the portfolio. This includes realized distributions already paid out and unrealized changes to a company’s valuation based upon a closed round of financing. Except for Amounts Returned there is no assurance that any additional value can be obtained in the future. Often, one can expect the MOIC and the Cash-on-Cash Return to be less than one in the early years. Winning companies typically take some time to shine, while losing companies usually struggle to scale and fail early. All funds are 10-year funds, and most need 6+ years to mature before a clear view of performance can be seen. According to Cambridge Associates, funds formed since 2016 are too young to have produced meaningful returns (Venture Capital Positively Disrupts Intergenerational Investing).

 

Summary of Alumni Ventures Pricing Events, as of June 30, 2021

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NOTES
1. $-Weighted Time Since Investment is based on the sum of the following for all investments: each investment’s original invested amount multiplied by the time since investment, divided by the aggregate invested amount.
2. Includes Converted Notes.
3. No Change includes any changes in value due to accrued interest on convertible notes.

 

A Note About Valuation

Valuations reflect the total fair value of the portfolio as determined in good faith by AVG according to its valuation policy. Unrealized investments are recorded at cost, and are only re-valued upon consummation of an arm’s-length transaction, either an up-round or down-round in a portfolio company, in accordance with this policy, or written off as a total loss if Alumni Ventures so determines. Up-Round generally means a financing subsequent to AVG’s investment has occurred at a higher per-share valuation (more favorable) than AVG’s original investment. Down-Round generally means a subsequent financing has occurred at a lower per-share valuation (less favorable) than AVG’s original investment. Amounts Returned is based upon an amount received in the event of an exit (such as an acquisition by an acquirer) or an initial public offering (IPO), or similar proceeds. Exits include escrows and amounts receivable at a future date but do not include contingent compensation that may not be realized. Public holdings are publicly traded securities priced at market value.

 

Recent Exits in the Alumni Ventures Portfolio

The table below reflects each exit of a portfolio company investment from an Alumni Ventures Fund from 7/1/2020 to 06/30/2021. Only certain AVG funds invested in any particular investment appearing in this table. This table, or any portion of it, does not represent the investment experience of any specific investor.  This table does not include the many AVG fund investments that have not yet experienced an exit, and those investments may fare better or worse than those in the table. The names of the portfolio companies and the exact dates of investment and exit have been hidden due to confidentiality requirements of the companies.

Data current as of June 30, 2021.

Recent Exits

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All Exits

Data current as of June 30, 2021.

All Exits Table

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NOTES

1. Current Valuation reflects the fair value of the investment as determined in good faith by AVG according to its valuation policy. Unrealized investments are priced at cost and then re-priced upon consummation of an arm’s length transaction or written off as a total loss. Relating to Exits, it represents the market value as of the last day of the period of any owned publicly traded investments, escrow(s), and/or estimated proceeds receivable at a future date. Current Valuation of Exits does not reflect any potential contingent consideration that could increase gains received on the investment.
2. MOIC (Multiple on Invested Capital) is equivalent to the multiple of return realized gross of fees and equals (Current Valuation + Amounts Returned) / Invested Capital. Reported performance would be lower if the impact of fees were reflected.
3. Cash-on-Cash Return is equivalent to the multiple of return realized by an investor on their investment after the impact of management fees has been taken into account and equals (Current Valuation + Amounts Returned) / Total Paid-in Capital. Total Paid-in Capital represents the amount of commitments received by investors allocable to the investment prior to the imposition of management fees. Reported performance would be lower if the impact of potential performance fees were reflected.

 

IMPORTANT DISCLOSURE INFORMATION

The manager of the AVG Funds is Alumni Ventures Group (AVG), a venture capital firm. AVG and the funds are not affiliated with or endorsed by any college or university. These materials are provided for informational purposes only. Offers of securities are made only to accredited investors pursuant to each fund’s offering documents, which describe among other things the risks and fees associated with the Fund that should be considered before investing. The funds are long-term investments that involve a substantial risk of loss, including the loss of all capital invested. Past performance is not indicative of future results. Opportunities to invest in any security (of a Fund, of AVG or in a syndication offering) is not a guarantee that you will be able to invest and are subject to all terms of the specific offering. Diversification cannot ensure a profit or protect against loss in a declining market. It is a strategy used to help mitigate risk.

AVG offers smart, simple venture investing to accredited investors. Specifically, AVG provides a path for individuals to own an actively managed diversified venture portfolio with a single investment co-investing alongside experienced VC firms. Traditionally, with limited investment capital and contacts, individual investors have had limited access to desirable deals alongside experienced VC firms, and even if they could access one or more such deals, it would take an inordinate amount of time, money and negotiation to build a diversified portfolio. With AVG Funds, investors can choose from a number of funds to make a single investment to gain exposure to a diversified portfolio of investments selected by an experienced manager. AVG Funds’ simple fee mechanism permits investors to avoid constant capital calls throughout the life of the fund as found in other private investment vehicles.

Contact info@avgfunds.com for additional information. To see additional risk factors and investment considerations, visit www.avg-funds.com/Disclosures.