How will The Cashmere Fund get access to invest in private companies?
Members' funds will be pooled and used to invest in companies across a variety of industries in one of three manners:
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direct equity stakes: this will apply primarily to Seed, Series A, and Series B companies;
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secondaries (which occur when founders and early employees sell their founder or preferred shares on a secondary exchange): this approach will target later stage companies;
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co-investment in other VC funds (especially targeting emerging managers): this method will use a "fund of funds" structure and be capped at a maximum 15% of AUM.
This multi-pronged strategy will allow us to create a fully diversified fund across a variety of industries, stages of growth, and risk profiles.