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Hedgeable Helps Investors Add Venture Capital Exposure with New Fund

Hedgeable Helps Investors Add Venture Capital Exposure with New Fund

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Thanks to the new venture fund from Finovate Best of Show winner, Hedgeable, the company’s accredited clients will be able to put money to work in the same venture capital markets typically available only to the wealthiest investors.

Writing at the Hedgeable blog, company co-founder and “Master Sensei” Michael Kane called the company’s first venture fund, Hedgeable Venture Fund I, “another piece to the puzzle in our quest to democratize the private wealth market.”

“The ultra-wealthy have been able to invest in venture funds like Andreessen Horowitz or Union Square Ventures for years,” Kane wrote. “The result has been lower portfolio risk, and larger portfolio growth.”

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Hedgeable Co-founder and “Master Sensei” Michael Kane demonstrated the NEXT platform at FinovateFall 2015 in New York.

With Hedgeable’s new venture fund, accredited clients will be able to invest as little as $1 in hundreds of privately held firms. The fund is managed by Hedgeable, which dramatically reduces or even eliminates the need for investors to do their own due diligence. There is no additional management fee and venture fund investments are factored into client’s total asset allocation, along with other alternative investments such as real estate, gold, and bitcoin. Investors must be accredited as Hedgeable clients in order to participate in the fund.

In his blog post, Kane showed how even a 3% exposure to venture capital since 1989 would have significantly outperformed a portfolio invested 100% in the S&P 500. Hedgeable says it will provide its accredited clients with similar exposure by “leveraging funds and syndicates” from equity crowdfunding platforms such as AngelList and CircleUp to “attempt to replicate that index level of venture exposure.”

Founded in 2009 and headquartered in New York City, Hedgeable demonstrated its NEXT platform for RIAs, banks, credit unions, and more at FinovateFall 2015. In addition to being a Best of Show winning Finovate alum, Hedgeable was a member of Yodlee Ynext’s fall 2015 incubator class.