1st Q2 Featured Founder | Sweater

The 1st New Majority founder currently fundraising from YOU this quarter.

Meet the future of venture capital investing with this week’s Featured Founder, Sweater!

Sweater

First, some context: 

• 🙁🫰Breaking into investing can be difficult – information about investments, especially private companies can be complex and opaque and accredited investors in the US must have at least $1m net worth or have earned $200k+ in the past two calendar years (Source: SEC). Not you? Read on.

• 🤯📈Historically, privately held companies funded by VCs have had up to a 32.4% annual return rate, compared to the S&P500’s 9.1% annual average (Source: Sweater). But, most investors don’t have access to this exclusive “VC asset class.”

• 😄🌐Legacy crowdfunding sites like Wefunder, StartEngine, and Republic have carved out a niche by appealing to the investment-curious, who may not have previous investing know-how or the assets to become accredited investors.

  • 🍯Crowdfunding generates around $17.2b per year in North America, and this number is growing! (Source: Fundera)

  • ☄️🙌On crowdfunding sites, potential investors can learn about available startup offerings, educate themselves on the basics of investing, and – crucially – can invest as little as $100 in the company of their choice!

  • 🔀🆚But, investors have to dedicate the lump sum of their choice to one startup at a time, and there aren’t easy mechanisms for individuals to track the performance of their investment.

• 🧩💰That’s where Sweater comes in! Sweater is bridging the gap between traditional VCs and crowdfunding with their model Cashmere Fund.

  • 🫵For everyday investors: Through the Sweater Investor App, everyday investors can access the Cashmere Fund’s portfolio with a $500 minimum investment. Investors buy shares in a Sweater “public VC fund” at a price determined by the fund’s current Net Asset Value (NAV). Traditional VC funds are only open to accredited investors, “public VC funds” are open to the everyday investor. 

Tell me more: 

Sweater is a first mover in creating a platform for everyday investors to build their investment portfolios with a “public VC fund” aka vetted private early-stage start-ups. Sweater launched their first fund, the Cashmere Fund, in 2022. Future plans include becoming a platform for other “public VC funds” offering personalized fund management services and infrastructure as Sweater partner funds.  

THE DETAILS

Industry: FinTech, SaaS

Impact: Reduced Inequalities (SDG 10)

Team Diversity: Woman Co-Founder