TLDR:
- Sweater is raising equity capital at a pre-money valuation of $48.49 million on StartEngine.
- The company aims to democratize the venture capital ecosystem by allowing anyone to invest.
Sweater is in the process of building a venture capital fund that is accessible to everyone, whether accredited or not. The company is currently conducting a funding round on StartEngine, with a pre-money valuation of $48.49 million. So far, they have raised over $430,000 from 397 investors. Sweater’s mission is to create a tight-knit community that connects investors, founders, and the companies they support.
They claim to be the first platform to make venture capital accessible to anyone, offering the opportunity to launch a Sweater-powered fund or invest in Sweater’s Cashmere Fund. Sweater highlights the potential for higher returns with VC investments compared to other asset classes. They emphasize that many everyday companies receive funding from venture capital and offer the chance to support the “companies of tomorrow.”
Sweater discusses the outperformance of private funds, with VC funds averaging a 32.4% annual return since 1995, compared to the S&P’s 9.1%. They also note venture capital as a way to diversify investment portfolios, with returns that don’t always correlate with traditional investments like stocks and bonds.
To address the Accredited Investor requirement, Sweater employs an interval fund structure, with their pilot fund Cashmere already having funded 33 companies and generated over $13.3 million in assets under management with 5,500 investors. The minimum investment requirement for investors is $500.
