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Yieldstreet To Launch Venture Capital Platform Giving Investors More Alternative Investment Opportunities

October 7, 2021 • 2 min read

Venture capital investing offers exposure to private companies during their historically fastest growth periods and greatest potential to generate returns

NEW YORK–(BUSINESS WIRE)–Yieldstreet, a leading digital alternative investment platform driven to help millions of people claim financial independence by unlocking access to previously unattainable investments, today launches a new venture capital focused platform, with plans to ramp up available offerings over the coming months. Retail investors can now gain exposure to private companies disrupting existing sectors or creating entirely new ones. Typically, during this private stage, companies see fast growth as their products and technology commercialize and allow for scale.

“Expanding asset classes available on Yieldstreet is yet another advance that we are making to break the exclusive grip that the ultra-wealthy and institutions have as wealth-creation strategies,” said Michael Weisz, Founder and President of Yieldstreet. “Times are changing. They no longer have a lock on harder to access markets such as venture capital. With technology, education and the access that Yieldstreet provides, retail investors have another option to generate new sources of returns outside of public markets, in this case, through venture capital.”

Trends in the financial industry reflect investors’ increasing awareness and desire for alternative investments. In September, an SEC panel, the Asset Management Advisory Committee, unanimously voted that the SEC should support making it easier for retail investors to access private funds. Returns on venture capital in 2020 were more than 50% and have averaged 32% over the past 25 calendar years¹. Returns are expected to continue to be an attractive investment option with the pandemic accelerating innovation and people’s reliance on technology and tech-enabled services. Global venture funding exceeded $300 billion in 2020² and through the first half of 2021 global venture funding has already reached $288 billion, suggesting even further momentum³.

“We’re excited that Yieldstreet is offering its members access to venture capital investing. As a leading venture capital and private markets investment manager, we’re encouraged by the expanding access to what we believe is an important sector,” said Jim Lim, Partner at StepStone Group, one of the largest global private markets investment firms with over $109 billion in assets under management as of June 30, 2021, $24 billion of which comprise venture capital and growth equity assets. StepStone Group, which recently acquired leading venture capital platform Greenspring Associates, manages several venture capital fund-of-funds, later stage direct investment funds, secondary funds, diversified growth funds, and several customized strategies.

Cambridge Associates, CA US Venture Capital Index as of 12/31/2020
Crunchbase, Global 2020 Funding and Exit https://news.crunchbase.com/news/global-2020-funding-and-exit/
Crunchbase, Global VC Funding 1H 2021 Monthly Recap https://news.crunchbase.com/news/global-vc-funding-h1-2021-monthly-recap/

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¹ Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

² Represents an net annualized return, using an internal rate of return (IRR) methodology, with respect to the matured investments shown in your Portfolio experience, utilizing the effective dates and amounts of subscriptions and distributions to and from the investments, net of management fees and all other expenses charged to the investments.[read more]

³ "Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. “Term" represents the estimated term of the investment; the term of the fund is generally at the discretion of the fund’s manager, and may exceed the estimated term by a significant amount of time. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.

⁴ Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.

⁵ Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.

⁶ The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments, excluding our Short Term Notes program, weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including July 18th, 2022, after deduction of management fees and all other expenses charged to investments.

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⁹ Statistics as of the most recent month end.

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