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I skimmed the prospectus far enough to get to the 5.75% load. Site has nice graphic design motif, not necessarily a good sign. I would expect the big dogs to get the profits from likely IPOs seeking "late stagefunding," whatever that is meant to include. I don't do very well with concepts I think I understand. Since I don't think I really understand this one (I'm pretty clear on 5,75%, tho), believe I'll stay on the porch.
Forget the load. This is the least of its problems.
The valuation of these companies in the secondary markets are completely ridiculous to make sense, if that is what these funds are buying and don't come with liquidation preferences of late stage VCs that protect their capital at ridiculous valuation.
The arrangement to co-invest with VCs turns this into a VC fund and if there is no transparency on the process ripe for conflicts of interest investing. The returns on late stage funding aren't that great because a lot of the companies fail to have any exits and a lot of companies have too high valuations by that stage.
If you do not understand how venture capital works and how the valuation of private companies work and have no transparency into the fund's portfolio strategy and investments, stay away. If you do understand it, I don't need to tell you to stay away.
thanks guys. I own GSVC/SVVC/KIPO and this might be a better way. I don't like load funds at all but if you can get a late stage pre-ipo like TWTR @ 20, you will do well for the most part.
Comments
The valuation of these companies in the secondary markets are completely ridiculous to make sense, if that is what these funds are buying and don't come with liquidation preferences of late stage VCs that protect their capital at ridiculous valuation.
The arrangement to co-invest with VCs turns this into a VC fund and if there is no transparency on the process ripe for conflicts of interest investing. The returns on late stage funding aren't that great because a lot of the companies fail to have any exits and a lot of companies have too high valuations by that stage.
If you do not understand how venture capital works and how the valuation of private companies work and have no transparency into the fund's portfolio strategy and investments, stay away. If you do understand it, I don't need to tell you to stay away.
Regards,
Ted
The fact that they are coming out with a retail mutual fund feels very toppy. Plus, what cman said.