Sweater, which is focused on becoming the VC fund for everyone, explains that it’s building the first venture capital fund that everyone can invest in—accredited or not. The company is currently in the midst of a funding round on StartEngine.
According to the offering page, Sweater is raising equity capital at a pre-money valuation of $48.49 million. As of today, over $430,000 from 397 investors has been raised.
Sweater says its mission is to democratize the entire venture capital ecosystem “by sewing a tight-knit community that brings investors, founders, and the companies they’re building closer together.” Sweater claims to be the first platform to make venture capital accessible to anyone.
The company enables the ability to launch your own Sweater-powered fund or invest now with Sweater’s Cashmere Fund.
Sweater notes that investing in VC opportunities may “produce higher returns compared to other asset classes.” The company adds that many of the companies we use every day are “a result of venture capital funding and now you can support the companies of tomorrow.” The company points to data on private funds that “typically outperform public markets, with VC funds producing an average annual return of 32.4% since 1995 compared to the S&P’s average annual return of 9.1%.”
As noted by Sweater, venture capital can be “a way to diversify your investment portfolio.”
As explained by Sweater, it’s a distinct asset class “that doesn’t always move in lockstep with traditional investments like stocks and bonds.”
Sweater explains that it is navigating the Accredited Investor shortcoming by using a fund structure called an “interval fund.”
The pilot fund Cashmere has provided funding for 33 companies and generating over $13.3 million in assets under management (AUM) with 5,500 investors.
The requirement for investors is a $500 minimum investment.
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