For Investors

Zell Capital is an investment company registered under the Investment Company Act of 1940 that invests in startup companies across the United States. We are pioneering a new type of investment fund, Access Fund, which allows all investors, not just accredited investors and institutions, to invest in venture capital funds.

for investors

Menu

Zell Capital Overview
Forms & Literature
Investor FAQ’s

Investor FAQ's

You should consider an investment in us to be a long-term investment and you will likely pay a premium over NAV for your Shares during the Initial Offering Period. Venture stage companies, like the companies we intend to invest in, often require several years to appreciate in value and may not appreciate at all. However, we will incur expenses related to our operations from the outset. Therefore, we expect that our NAV will decrease based on the ratio of operating expenses compared to capital raised, until we begin to realize a return on our investments.

As such, if we were to sell our shares at NAV, rather than the Initial Offering Price, during the Initial Offering Period, early investors in us would experience dilution in the value of their shares as our expenses drive down our NAV, as compared to later investors who could take advantage of the lower offering price to avoid expense related to our operations. In contrast, we believe that the fixed Initial Offering Price during the Initial Offering Period will help ensure that all investors during the Initial Offering Period share ratably in the initial offering expenses.

Notably, investors will likely pay a premium over NAV when purchasing Shares, which premium may be more significant as our operating expenses drive NAV down during the Initial Offering Period. However, any difference between the $20.00 purchase price and NAV is expected to represent that investor’s proportionate coverage of fund operating expenses retroactive to the launch of the Company. We believe that the fixed Initial Offering Price during the Initial Offering Period, subject to any adjustment to ensure we are not selling our Shares below NAV, is an essential feature of our Access Fund model to ensure that investors are paying their proportionate share of the initial operating costs and to avoid diluting the Shares of early investors.

An Access Fund is an investment company registered under the Investment Company Act of 1940.  The purpose of an Access Fund is to open up private market fund investment opportunities to all investors, not just accredited investors.

Any individual in the United States that is at least 18 years old can invest in Zell Capital. We cannot receive investment from non-US citizens at this time. 

The initial minimum investment into Zell Capital is $1,000 and any subsequent investment minimum is $240.  We highly suggest you consult your financial advisor to determine the right investment amount. Because startup investing is high risk, investors typically invest a very small amount of their portfolio into this type of opportunity. Please review the Prospectus before investing.

Investing in Zell Capital is a digital process. Click on the Create Investor Account button and you will be taken to a page to confirm you have performed due diligence and are aware of the risks related to investing in Zell Capital. When you click on “Create Your Investor Account” a new browser window will open taking you to the account portal managed by US Bank, our fund administration service provider. Here you will create your investment account, connect your banking information and indicate the amount you will be investing. At this stage no funds will be withdrawn from your banking account.

During our initial offering period each share in Zell Capital has a fixed price of $20. It is important however that each investor understands the difference between the sales price and the Net Asset Value (NAV) of the fund. 

At the end of each month we will calculate the Net Asset Value of the fund and you will receive an email within five days that provides a summary of your investment along with the most recent Net Asset Value. At this point you will confirm your investment and funds will be withdrawn from your banking account. Shares will be issued to you and the investment process will be complete.

For information about the risks relating to investing in Zell Capital, please read our prospectus.

Yes. US entities can invest into Zell Capital.

To invest as an entity select “As an entity” in the “How Will You Invest?” question on the form to create your investor profile. You will be taken to a DocuSign application to complete and submit. Once submitted US Bank will review and confirm your investor account is created. At this stage, however, no funds will be withdrawn from your banking account.

During our initial offering period each share in Zell Capital has a fixed price of $20. It is important however that each investor understands the difference between the sales price and the Net Asset Value (NAV) of the fund. 

At the end of each month we will calculate the Net Asset Value of the fund and you will receive an email within five days that provides a summary of your investment along with the most recent Net Asset Value. At this point you will confirm your investment and funds will be withdrawn from your banking account. Shares will be issued to you and the investment process will be complete.

For information about the risks relating to investing in Zell Capital, please read our prospectus. 

The Fee and Expense table in the prospectus includes nuances that are important to understand. Please read our Fees and Expenses Explained for an overview of what investors can expect to incur.

There is no current market for you to sell your shares in Zell Capital, and there is no guarantee that there will ever be a market for you to sell your shares. Your investment returns will come through distributions generated from investment gains of the fund.

Zell Capital will primarily invest in seed and early-growth stage companies, also known as venture capital. Returns will be generated when we sell our shares in the future. A typical holding period of our investment into each startup will be at least seven years.

Secondarily, we will invest through debt and debt-like instruments into seed and early-growth stage companies. We expect these investments to generate ordinary income which will be distributed to investors based on our requirements as a Regulated Investment Company (RIC).

The Company has a Distribution Reinvestment Program that will enable investors to choose between receiving distributions in cash or reinvesting distributions into the fund. Investors can select their preference in the “Distribution Options” tab in their investor account.

We invest in seed and early-stage startup companies that have potential for capital gains on our equity investments and ordinary income from debt and debt-like investments. The stages we invest in are seed and series A. 

The companies we invest in are generally technology or technology-enabled. 

Zell Capital is registered under the Investment Company Act of 1940, as amended. As a publicly registered fund we are required to file regular updates with the SEC and provide certain information, including disclosures about our investment activities and risks related to our offering. 

Access to all filings will be conveniently available to our investors and can also be found on our SEC Filings page.

The best investors in startups are those that can provide meaningful support beyond capital. Startups need support in many areas including customer introductions, product feedback and promotion. Investors in Zell Capital will become part of our community to support our startups in every possible way. 

Before investing you should carefully consider the fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which you can find at www.zellcapital.com/prospectus or by contacting US Bank at 1-888-484-1944. Please read the prospectus carefully before you invest. 

An indication of interest in response to this advertisement will involve no obligation or commitment of any kind. 

Our investments in what we believe to be rapidly growing venture-capital-backed emerging companies may be extremely risky and we could lose all or part of our investments.  Significant risks of investing in venture capital backed emerging companies are: these companies may have limited financial resources, limited operating histories, and have generally less predictable operating results. Because they are privately owned, there is generally little publicly available information about these businesses.  Also, early-stage and development-stage companies have a high rate of failure and often experience unexpected problems.

We plan to focus a significant portion of our investing in technology companies, which may cause the value of our interests to be susceptible to factors affecting the technology industry and therefore subject to greater risk than an investment in a fund that invests in a broader range of securities.

The marketplace for venture capital investing has become increasingly competitive, making it difficult for us to locate an adequate number of attractive investment opportunities.

Because our investments are generally not in publicly traded securities, there will be uncertainty regarding the value of our investments, which could adversely affect the determination of our net asset value.

One of the key elements of our structure as an Access Fund is the potential for investors of the type we expect to attract to provide expertise to our portfolio companies in various areas. There is no guarantee that any of our investors will, in fact, have expertise that would be useful for any of our portfolio companies, or if they have such expertise, that they would have any interest in working with our portfolio companies.

We have identified only a few specific investments that we may make with the proceeds from this offering. As a result, this may be deemed to be a “blind pool” offering and you will not have the opportunity to evaluate historical data or assess any investments prior to purchasing our Shares. 

There can be no assurance that the results predicted or targeted will be attained, and actual results may be significantly different from the statements on this website. Also, general economic factors, which are not predictable, can have a material impact on the reliability of our targeted results.

 Investing involves risk.  Loss of principal is possible.

Investing in our shares involves a high degree of risk. Before buying any shares, you should read the discussion of the material risks of investing in our shares in “Risk Factors” in the prospectus, a summary of which is also found here.  Our shares will not be publicly traded, and you will have very limited liquidity, may not be able to sell your shares, and may not receive a full return of your invested capital, regardless of how we perform.

Copyright 2021 © Zell Capital
Terms and Conditions | Privacy Policy | Phone: 614-505-2560 | Toll Free Investor Support – US Bank 1-888-484-1944 alternativefundsupport@usbank.com
Address:
175 S. Third, Suite 200
Columbus, OH 43215