The iSelect Approach for Accredited Investors
There is a disconnect in the startup funding ecosystem. You want to diversify your investments but do not have the opportunity to choose. Most ordinary Americans only learn about new venture opportunities when they have an IPO. Years after the company started. Without the option to invest earlier.
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.
iSelect solves this problem by managing the diligence burden for investors, providing diversification by allowing a smaller investment in many early-stage companies. Providing you the choice to decide on your terms.
A Portfolio of Venture Investments
iSelect is one of the first investment vehicles that affords accredited investors access to an evergreen portfolio of venture investment opportunities. Each thoroughly vetted by a committee of successful entrepreneurs, domain experts, and professional venture investors. iSelect manages the sourcing, diligence, and ongoing efforts with the investments. Accredited investors in our fund choose from several investment strategies that meet their expectations. Creating a portfolio of opportunities is a common strategy used with large investors. With iSelect, accredited investors can get the same form of diversification at a price point suitable for their needs.
Each company in the iSelect portfolio is subjected to an extensive due diligence regime. This takes the hard work of vetting potential investments off of fund investors. Once selected for review by our Venture Team, likely companies are studied by an industry-specific Selection Committee composed of independent entrepreneurs, business executives, world-renowned scientists and researchers, and accomplished venture investors in market niches including Healthcare, Agriculture, and Technology 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:
- Is the venture commercially ready for business?
- Does the venture have the ability to create entry barriers necessary for a sustainable competitive advantage?
- Is the management team capable of growing the business responsibly?
- 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 of these criteria are not accepted to the iSelect platform.
Our investors also have access, subject to non-disclosure requirements, to all of this research in the form of a summarized and packaged diligence file made available to investors and their financial advisors for each venture investment in the iSelect portfolio. Post-investment, companies provide regular reports so that investors can monitor the progress of their portfolio, all to help accredited investors more easily evaluate, understand, and manage their personalized series of early-stage venture securities.
How to Invest
iSelect works with investors and/or their financial advisors to help create a diversified portfolio of venture investments. This is one of many investment strategies for growth, retirement, and wealth preservation. Each individual’s situation, though, is different. By identifying and investing in only the most promising early-stage companies, investors support the work of intelligent, innovative entrepreneurs and may reap the potential reward of investment returns over time.
- Must be an accredited investor comfortable with a hold period that can be as long as seven years or more.
- The typical minimum investment in iSelect is $50k, no less than $5k per company.
- iSelect investments can be held in a retirement account, a regular brokerage account, or a trust. The Fund is structured for investment by individual investors, family offices, retirement plans, and institutional investors.