VC 2.0 Proposal

Background

The High Net Wealth Individuals (HNWIs) are not being well served. The fees charged by the wealth managers are high and lack of transparency. The wealth managers also could not provide diverse investment opportunities, while they are increasing the minimum investable assets requirement, leaving a large portion of the HNWIs underserved.

On the other side, the crowd-funding platforms are not aligned with either the investors or the start-up founders due to their transaction-based revenue model.

Therefore, to solve this problem, a new type of VC is needed. We proposed a new VC called WeFund, which raises funds from HNWIs like crowdfunding platforms and conduct due diligence and deal flow like traditional VCs. Like any other VC, WeFund will charge 2 (mgmt fee) + 20 (carries) from the investors.

The value added by WeFund for the HNWIs are its access to early-stage startups and its investment research and analysis capabilities from the dedicated experienced professional team. The value of WeFund to the start-ups are another source of funding with potentially faster process, no charge for fundraising (comparing to crowdfunding platforms that collect % of funds raised from start-ups), and all support they can get from other VCs.

To review the proposal, please click the presentation below. This is for academic research and discussion ONLY. It is not a REAL project.

Download (PDF)

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