With the rapid development of venture capital and private equity investment, more and more investors are paying attention to collaborative fund investment. Collaborative Fund is a leading venture capital firm focused on supporting founders. Understanding how to invest in Collaborative Fund can help investors better participate in this field. This article will summarize key information about investing in Collaborative Fund from aspects of fund profile, investment strategy, portfolio companies, investment process and investor qualification.
Collaborative Fund key fund information overview
Collaborative Fund was founded in 2010 by Craig Shapiro. It is based in New York and San Francisco, managing over $500 million in assets. Collaborative Fund focuses on providing seed and early stage funding for companies across various sectors like consumer internet, healthcare, education, real estate, etc. The fund aims to support mission-driven founders who utilize business as a solution to solve global issues.
Collaborative Fund investment strategies and preferences
Collaborative Fund doesn’t have a single thesis but provides flexible capital to support founders based on specific contexts. It prefers to invest in seed and early stage companies, with initial checks around $500k to $2 million. The fund looks for world positive businesses that have potential for outsized financial returns. It focuses on disruptive companies that can address big problems through technologies like AI, robotics, synthetic biology, etc.
Overview of Collaborative Fund portfolio companies and exits
Collaborative Fund has invested in many renowned companies across different industries. Its consumer internet portfolio includes Instagram, Kickstarter, Reddit, etc. Healthcare portfolio has companies like Oscar Health, Nurx, Forward, etc. Education portfolio includes Andela, MasterClass, Lambda School, etc. Other major investments include Beyond Meat, Opendoor, Impossible Foods, etc. Notable exits include Instagram, Oculus, Cruise Automation, etc.
Collaborative Fund typical investment process
The Collaborative Fund investment process starts with an initial call to understand the vision and metrics of a company. If there is interest for further discussions, the fund will conduct team meetings and on-site visits. Due diligence across business model, market outlook, and financials will be performed. If the investment team recommends moving forward, a term sheet will be created. After legal and financial review, the transaction will be closed.
Investor criteria to invest in Collaborative Fund
To invest in Collaborative Fund, investors need to be qualified purchasers with either individual or joint net worth greater than $5 million. For entities, investment is open to those with greater than $25 million in investible assets. Collaborative Fund requires a minimum commitment of $1 million from its limited partners. Investors can expect management fees of 2-2.5% and carried interest around 20%.
This summarizes key information regarding investing in Collaborative Fund across aspects like fund profile, investment strategy, portfolio, process and investor criteria. Understanding these can help investors better participate in this emerging venture capital and private equity fund.