Deep Dive Presentations

Each week our analyst team reviews an emerging trend. In it, we outline macro-trends, industry sub-sectors, key influencers and luminaires, market leaders, and potential investment opportunities.

Access This Week’s Deep Dive Replay: Gene Therapy

We are not soliciting investment. This presentation is only to provide information on the given topic. Investing in Venture Capital has Significant Risk.

NO AMOUNT OF DILIGENCE OR DIVERSIFICATION CAN ELIMINATE THE RISK THAT INVESTORS IN EARLY STAGE PRIVATE DEALS MAY LOSE THEIR ENTIRE INVESTMENT.   BEFORE INVESTING ANY AMOUNT, IT IS IMPERATIVE TO REVIEW THE PRIVATE PLACEMENT MEMORANDA OF EACH OF ISELECT FUND – ST. LOUIS, LLC, ISELECT FUND B – ST. LOUIS, LLC AND EACH PORTFOLIO COMPANY TO UNDERSTAND THE UNIQUE RISKS FOR EACH COMPANY.  RISK FACTORS TO CONSIDER, INCLUDE BUT ARE NOT LIMITED TO THE FOLLOWING:

  • BY SUBSCRIBING TO AN INVESTMENT IN ISELECT FUND, AN INVESTOR WILL NOT DIRECTLY OWN PORTFOLIO COMPANY SECURITIES.  INSTEAD, PORTFOLIO COMPANY SECURITIES WILL REMAIN UNDER THE OWNERSHIP AND CONTROL OF THE FUND.
  • INVESTMENTS BY THE ISELECT FUND IN PORTFOLIO COMPANY SECURITIES ARE ILLIQUID AND WILL NOT BE TRANSFERABLE FOR THE FORESEEABLE FUTURE.  INVESTORS WILL HAVE NO WAY TO LIQUIDATE THEIR INVESTMENTS FOR A SUBSTANTIAL PERIOD OF TIME.
  • ALL PORTFOLIO COMPANIES ARE EARLY STAGE COMPANIES AND THERE IS SIGNIFICANT RISK THAT EACH PORTFOLIO COMPANY WILL FAIL AND INVESTORS WILL LOSE ALL OF THEIR INVESTMENT.
  • THE OFFERING PRICE FOR PORTFOLIO SECURITIES IS DETERMINED BY EACH PORTFOLIO COMPANY. THERE IS NO THIRD PARTY VALUATION OF THE OFFERING PRICE FOR SUCH SECURITIES.
  • MEMBERS OF ISELECT FUND’S INVESTMENT COMMITTEE AND SELECTION COMMITTEE MAY BE ACTIVELY INVOLVED IN BUSINESSES WITHIN THE SAME INDUSTRIES AS SOME OF THE PORTFOLIO COMPANIES.  THERE CAN BE NO ASSURANCE THAT THE SELECTION COMMITTEE’S VIEW OF A PORTFOLIO COMPANY (OR OTHER COMPANIES NOT SELECTED TO BECOME PORTFOLIO COMPANIES) WILL NOT BE INFLUENCED BY ONE OR MORE MEMBER’S PERSONAL BIASES FOR OR AGAINST A PARTICULAR COMPANY.
  • THE SALE OF SECURITIES BY ISELECT FUND AND EACH PORTFOLIO COMPANY WILL NOT BE REGISTERED UNDER FEDERAL OR STATE SECURITIES LAWS. SUCH OFFERINGS WILL NOT BE REVIEWED BY THE SEC, ANY STATE SECURITIES COMMISSION, FINRA OR ANY OTHER REGULATORY AGENCY.
  • INVESTMENTS IN THE  PORTFOLIO COMPANIES ARE SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK. IN GENERAL, FINANCIAL AND OPERATING RISKS CONFRONTING THE PORTFOLIO COMPANIES CAN BE SIGNIFICANT.   A LOSS OF PRINCIPAL IS POSSIBLE. THE TIMING OF PROFIT REALIZATION IS HIGHLY UNCERTAIN. ADDITIONAL CONSIDERATIONS INCLUDE LESS LIQUID MARKETS AND LESS AVAILABLE INFORMATION THAN IS GENERALLY THE CASE IN PUBLICLY TRADED SECURITIES, AS WELL AS LITTLE OR NO GOVERNMENT SUPERVISION OF THE PORTFOLIO COMPANIES’ DEALINGS, AND THE LACK OF AUDITED FINANCIAL STATEMENTS.  EARLY STAGE AND DEVELOPMENT STAGE COMPANIES OFTEN EXPERIENCE UNEXPECTED PROBLEMS IN THE AREAS OF PRODUCT DEVELOPMENT, MANUFACTURING, MARKETING, FINANCING AND GENERAL MANAGEMENT, WHICH, IN SOME CASES, CANNOT BE ADEQUATELY SOLVED. SUCH COMPANIES OFTEN DO NOT GENERATE REVENUE OR SUFFICIENT REVENUE TO COVER THEIR EXPENSES. THEREFORE, SUCH COMPANIES MAY REQUIRE SUBSTANTIAL AMOUNTS OF FINANCING WHICH MAY NOT BE AVAILABLE THROUGH INSTITUTIONAL PRIVATE PLACEMENTS OR THE PUBLIC MARKETS. MOREOVER, ADDITIONAL FINANCING COULD HAVE A SIGNIFICANT DILUTIVE IMPACT ON A SUB-FUND’S OWNERSHIP INTEREST IN A PORTFOLIO COMPANY.  NO ASSURANCES CAN BE GIVEN THAT ANY OF THE PORTFOLIO COMPANIES’ PRODUCTS WILL BE SUCCESSFULLY MARKETED AND/OR SOLD IN SUFFICIENT VOLUME TO GENERATE A PROFITABLE OPERATION. THE PERCENTAGE OF COMPANIES THAT SURVIVE AND PROSPER IS SMALL.
  • FEES PAYABLE TO ISELECT FUND AND/OR BROKER DEALERS WHOSE CLIENTS PURCHASE INTERESTS IN ISELECT FUND WILL REDUCE THE RETURN TO INVESTORS.  BY INVESTING DIRECTLY IN PORTFOLIO COMPANIES, INVESTORS WILL AVOID PAYING A MANAGEMENT FEE AND CARRIED INTEREST TO ISELECT FUND AS WELL AS ANY APPLICABLE BROKERAGE COMMISSIONS OR FEES.