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Zell Capital is an investment company registered under the Investment Company Act of 1940 that seeks to maximize our portfolio’s long term total return by investing in early stage startups, seeking capital gains on our equity investments and ordinary income from our debt investments. We are pioneering a new type of investment fund, Access Fund, which provides an opportunity for all to invest in a venture capital fund.
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Zell Capital Overview
Traditionally, only wealthy individuals and institutions have access to invest in funds that invest in startup companies, also known as venture capital funds. This is because traditional venture capital funds are private funds that are not subject to the same regulatory reporting requirements of registered funds. Investing in private venture capital funds involves a lot of risk, and there are investor protections in place, such as accredited investor standards, to protect investors who may be unfamiliar the risks.
Zell Capital is pioneering a new model that transparently educates investors about the risks of startup investing while providing a fund investment opportunity that is accessible to all investors, not just the wealthy.
We call this new type of fund an Access Fund.
Our fund is registered under the Investment Company Act and is subject to regular reporting and disclosure. This enables us to have fund investors beyond what traditional private equity and venture capital funds can have. In fact, with a minimum investment of $1,000, our fund is highly accessible for most investors.
Investing in startups involves a high level of risk. This is because startups are illiquid investments. When you invest cash to purchase shares of a startup company there is no easy way to sell those shares after purchase. This means if a startup company, or a fund that invests in startups, goes out of business, you could lose all of your investment. This is different from publicly traded companies. For example, if you invest cash to purchase shares of a publicly traded company, you can typically sell those shares very quickly if needed, limiting the risk of loss of your investment. In contrast, buying shares in publicly traded companies is considered a liquid investment. The lack of liquidity in startup investing underscores the need for investors to perform due diligence and understand that when they invest, there is a chance that all of the investment capital could be lost. Generally, investors likely invest only a very small percentage of an investment portfolio into these types of speculative, high risk investments.
So, why do it all?
Early equity ownership is a great tool for wealth creation that exists in our society. Receiving shares of ownership at founding, or shortly thereafter, in companies that experience high growth can generate significant financial returns. However, these investors can also lose their entire investment if the company fails.
The venture capital industry exists to provide investors a passive investment opportunity into early equity ownership of startups through fund-based strategies. Due to the risks of startup investing a fund-based model can be ideal for investors where their investment is diversified across a large number of companies, reducing the risk of full loss of capital.
Zell Capital offers this passive investment opportunity for the first time to all investors through our Access Fund. Our fund approach brings innovation and access for the first time to investors who have historically been locked out of this investment opportunity.
Please take time to explore our website to learn more about the team and culture at Zell Capital. Also please ensure that you perform due diligence and seek advice from your financial advisor before making an investment. Investing in Zell Capital is a long-term commitment and subject to certain risks.