What is SmartCapital Colorado?
SmartCapital Colorado is a portfolio of fast growth companies in Colorado. The portfolio contains approximately 25 startups, all with strong ties too or based in Colorado, with the potential to grow into large companies. When you view the portfolio you will be able to see the companies anticipated as well as information about those companies.
What is the process for SmartCapital for putting companies into the portfolio?
For companies to be considered for the portfolio, they must follow these investment principles:
- Strong ties to or headquartered in Colorado.
- Have revenue and trajectory to grow revenue with additional funding.
- Have a large identifiable market size that the company can expand into.
- Have a VC, accelerator, angel group, or other investment partner that is also investing or invested in the company to help with diligence.
After initial qualifications, companies are then assessed against one another to then select the companies for the offering.
What is the process of investing in the SmartCapital Colorado fund?
The SmartCapital Colorado portfolio is opening for initial funding on April 19th, 2019. At that time, accredited investors will be able to view the companies in the portfolio and then make the decision to invest in the portfolio.What are the main benefits of the SmartCapital Colorado Portfolio?
An investment in the portfolio may be beneficial for you if you:
- Seek to diversify your personal portfolio with a startup-investment vehicle focused primarily on startups.
- Seek to receive returns from high-risk, high-reward, long-term investments.
- Seek to preserve capital and are able to hold your investment for a time period consistent with our liquidity strategy.
We do caution potential investors that an investment in the portfolio will not meet investors' needs if they require immediate liquidity, guaranteed income, if they seek seek stable growth, or seek a short-term investment.Do I have to be accredited to invest in SmartCaptial Colorado?
Yes. Any investment opportunity will only be available to accredited investors.
I’m not in the U.S., can I invest in SmartCapital?
No. At present, the portfolio is limited to U.S. residents that are accredited investors.
Is there a maximum investment amount?
Yes. The initial maximum investment is $500,000. We may increase or decrease this as we see fit depending on the type of investor and our need to limit the maximum investment received from any investor to maintain our compliance with securities laws. What is the fee structure of SmartCapital Colorado?
SmartCapital Colorado pays a total management fee to fund's manager of 10% of the fund (equivalent to 1% per year for the estimated lifetime of a 10-year fund). The management fee is to cover fund operating and maintenance costs. In a more traditional VC fund, fees are typically 20% of the fund which makes the management fees for SmartCapital Colorado less than a standard VC fund. The management fee will reduce the cash available for investment and distribution. SmartCapital also receives the traditional 20% carry (standard in most VC funds) of future returns after the initial investment is returned to investors.Will I be notified of how the portfolio is doing?
Yes. We will provide you with periodic updates on the performance of your investment in the SmartCapital Colorado portfolio, which may include:
- An annual report
- A semiannual report
- Supplements to the offering, if we have material information to disclose to you
- Other reports that we may file or furnish to the SEC from time to time.
We will provide this information to you by posting in the SmartCapital Colorado app at https://colorado.capital, which you can log in to at any time. Also, this information may be provided upon request via email or U.S. mail.
I have more questions, who can I talk to about potentially investing in SmartCapital Colorado?
If you have more questions about the investment offering you should contact us by email at [email protected]