The iSelect Approach for Accredited Investors
There is a disconnect in the startup funding ecosystem. Most ordinary Americans only learn about exciting new venture opportunities after it is too late to invest.
Perhaps one of the reasons for this is that investing in venture capital is hard. It takes time and expertise to adequately source, identify, and monitor a portfolio of venture investments. Diversifying across several deals typically requires $1.0 million or more of investable capital. Monitoring venture investments requires constant vigilance. The task is unmanageable for most people despite the potential returns.
As the first build-your-own venture fund, iSelect solves this problem by managing the diligence burden for investors, providing diversification by allowing minimum investments in a single company for as low as $5,000 and continually monitoring investments after.
A Portfolio of Venture Investments
iSelect is the first investment vehicle that affords accredited investors access to an evergreen portfolio of venture investment opportunities that have been thoroughly vetted by a committee of successful entrepreneurs, domain experts, and professional venture investors. We allow accredited investors to realize the potential to earn venture capital returns via a product that is diversified and risk-managed.
Each company in the iSelect portfolio is subjected to an extensive three-tiered due diligence regime, including review by a FINRA registered broker-dealer. This takes the hard work of vetting potential investments off of fund investors. Once selected for review by our Venture Team, potential companies are studied by an industry-specific Selection Committee that’s composed of independent entrepreneurs, business executives, world-renowned scientists and researchers, and accomplished venture investors in market niches including Healthcare, Agriculture, Energy, Technology and more, before being submitted to iSelect’s Investment Committee for final review.
Strict Selection Criteria
As part of the diligence process, iSelect’s Selection Committees dig into the fundamentals underlying each company: (1) Is the venture commercially ready for business? (2) Does the venture have the ability to create the barriers of entry necessary for a sustainable competitive advantage? (3) Is the management team in place capable of growing the business responsibly? (4) Has the company taken the appropriate steps to identify and address the risks of the venture to the extent possible for the relevant stage of the company. Companies that fall short on any of these criteria are not accepted to the iSelect platform.
Our investors have access to all of this research as well, in the form of a summarized and packaged diligence file that is made available to investors and their financial advisors for each venture investment in the iSelect portfolio. Post-investment, companies provide quarterly reports so that investors can monitor the progress of their portfolio, all in an effort to help accredited investors to more easily evaluate, understand, and manage their personalized series of early-stage venture securities.
How to Invest
iSelect works with investors and their financial advisors to help create a diversified portfolio of venture investments, and is an effective investment strategy for growth, retirement and wealth preservation. By identifying and investing in only the most promising early-stage companies, we are able to not only support the work of smart, innovative entrepreneurs, but also reap the reward of potential investment returns over time.
- Must be an accredited investor who is comfortable with a hold period that can be as long as 5-7 years or more.
- The minimum investment in iSelect is $50k, no less than $5k per company.
- Each investor, in conjunction with their financial advisor, can select which companies to invest in, and how much to invest (subject to the $5,000 per company minimum).
- iSelect investments can be held in a retirement account, a normal brokerage account, or a trust, and the Fund is structured for investment by individual investors, family offices, retirement plans, and institutional investors.