Many of the companies that meet our targeting criteria see significant success. However, these companies are rare and opportunities to invest in them, prior to IPO, are highly competitive.
Historically, the types of opportunities that the club targets were largely reserved for some of the world’s leading venture funds. However market developments over the last decade have allowed smaller sophisticated investors to participate in their investment rounds.
While only a smaller percentage of companies, particularly across a portfolio of companies, will reflect these returns, we believe that our club strategy targets those companies with a higher likelihood of generating these types of returns. Still, factors like timing, business conditions, economic conditions and market conditions could vary returns significantly. Adjustments in the timing of the investments below would cause positive or negative changes in the return profile and investments in private companies, albeit late stage private companies, are generally risky and speculative in nature with a possibility of the loss of all or part of principal and a lack of liquidity.