
SUMMARY
In our conversations with potential investors, we’ve found that many misperceptions persist about VC investing. Here are the top three:
- I’m not wealthy enough to invest in venture capital. Millions like you are.
- I can’t get into good deals. You can, and we make it easy.
- VC is too complex and time-consuming. It’s not. We do the heavy lifting.
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True venture-backed startups
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Co-investing with well-known VCs
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Accessible fund minimums
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Your professionally managed VC portfolio
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Myth 1: I’m not wealthy enough to invest in venture capital.
Let’s start with one of the most widespread myths pertaining to venture capital: You think you’ll need to cut a check for millions of dollars to participate in the asset class. If you only read the financial headlines, it’s easy to see why you’d think this is true. Traditional venture firms do typically cater to institutional investors, the ultra-wealthy, and family offices with millions or billions to invest. However, Alumni Ventures will build you a robust venture portfolio for as little as $25K. Some funds have a $50K minimum.
AV’s mission is to democratize venture capital for accredited investors from all backgrounds and experience levels — including those who have never before invested in startups via VC, angel investing, or other means. Accessible fund minimums mean you can get started in venture in a meaningful way, with a professional portflio of 25+ investments, at a level you are comfortable with. Some new investors start near the fund minimum their first investment but increase their allocation to the asset class as they get more comfortable and experience the many benefits of investing with AV.
Myth 2: I can’t get into good deals.
Many venture investments hinge on a complex, multi-layered network of entrepreneurs, investors, and stakeholders. For individuals whose portfolios are solely built around publicly traded assets, these networks can seem intimidating and impenetrable.
This myth is one of the core misconceptions that AV was founded to address. While other venture firms depend on just a few high-dollar investors, Alumni Ventures is democratizing venture capital to bring our entire community to the table, providing access to investment opportunities that would otherwise be out of reach of the average investor.
First, co-investing alongside well-known, strong lead venture firms is a core tenet of our investing philosophy. We almost exclusively invest in the same companies, in the same rounds, on the same terms as the “who’s who” of VC firms, such as Andreessen Horowitz, Greylock, and Sequoia. That means YOU are investing on these terms with these firms.
Further, we value our community as our major strength in deal sourcing. AV taps into its powerful network of 600,000+ subscribers and community members — plus our 175+ full-time employees working on your behalf — to source and vet investment opportunities and conduct due diligence before investing
Myth 3: Venture capital is too complex and time-consuming.
Putting together a venture portfolio from scratch can be difficult. Often investors end up with limited, undiversified portfolios. This can make the process of owning a venture portfolio appear overly complex, time-consuming — and ultimately unrewarding. That’s why we’ve developed an experience for our customers that streamlines and simplifies the entire process.
“I have sought out many avenues to become a venture capitalist. The idea of writing outsized checks coupled with finding the right companies to invest in always eluded me until Alumni Ventures came along. The thorough due diligence and entry point provided by AV have removed those previous barriers. As an entrepreneur, I am learning more about building companies now than ever before.”¹ – AV Investor
With AV, you don’t need to source, vet, or select each investment personally. Our team builds portfolios for you, diversified by sector, stage, geography, and lead investors. All investments within your funds are subject to AV’s rigorous due diligence and vetting processes, striving to ensure that each investment offers the potential for promising returns. All of our funds are 10-year funds, and there’s only one check to write. It’s as easy as selecting a portfolio that aligns with your priorities and committing to it. And, to keep your AV experience as stress-free as possible, we don’t send surprise bills or have numerous capital calls.