The Legacy Funds®
The Problem
- Approximately 2/3 of all venture capital invests in 3 metro-regions.
- Entrepreneurs NOT in those communities struggle for funding and consequently, search for funding elsewhere.
- Economic benefits of innovation are NOT geographically distributed.
86 of the nation’s largest 100 metros have either seen their share of the national (digital service jobs) sector go sideways or actually shrink since 2010.
– Brookings Institute
Why Entrepreneurs Care
-
Funding
Startup CEO’s now have a defined, transparent path to funding and no longer have to search for funding outside of their hometown.
-
Time
With a clear path to funding, entrepreneurs can dedicate more time to building their business and fostering relationships with those that care about their success rather than spend an exorbitant amount of time trying to entice investors.
-
Access
Entrepreneurs should be visible to local investors in a way that rewards transparency and execution. A local funding vehicle provides entrepreneurs with access to investors that care about investing in their community.
Why Community Leaders Care
-
Community Foundations
Empowered to attract and serve donors of multiple generations that want to increase their impact on their communities, principally through Place Based Impact Investing.
-
Family Offices
Want a better way to allocate their “legacy capital” that is more economically rewarding for their community and themselves.
-
Civic Minded Citizens
Need a solution to confirm their role as leaders in contributing to their community’s economic growth and vibrancy.
Solution
The Legacy Funds platform is designed to mobilize the enlightened capital into regionalized ecosystems and reward the innovators, while providing a transparent, meritocratic path to funding. We make it easy to be part of the solution.
Branded Network of Funds
Scalable
The Legacy Funds will provide a technology platform (‘Venture-as-a-Service) and brand to license standardize, localized, venture funds around the country.
Turn Key for General Partner
Each licensed fund will leverage the cloud-based infrastructure of
- Fund Administration
- Investor Relations
- Company & Portfolio Analytics
and other resources to eliminate the burden of fund formation and management.
More Startups Supported
As a result, more investors in more communities can leverage the funding infrastructure to support innovation in the communities they care about.
SIFT® Method of Venture Portfolio Construction
Smart® IR
An expectation of proper transparency from startups seeking investment before funding, leveraging the research that confirms the link between transparency and startup performance.
Index Fund-like structure
Leveraging the research showing 100 companies equally weighted is the optimal seed fund structure.
Filtering
Rather than merely picking companies, we filter them for funding based on consistent, transparent milestones that de-risk the selection for the fund without adverse signals of over-weighting or under-weighting investments.
Tax Optimization
Inclusion of both QSB §1244 and §1202 to optimize the after-tax risks and returns.
Regionalized Funding Portals
Local Focus
Each Legacy Fund will be established in specific regions (states, cities, towns), availing local entrepreneurs an on-line, transparent path to funding in their most localized Legacy Fund.
Clear Funding Path
The Legacy Funds will present a transparent and efficient path to funding for entrepreneurs. The criteria to qualify for funding will be clearly outlined, thereby eliminating most of the subjectivity associated with current funding processes.
Follow On Funding
Due to the required use of AngelSpan’s best in class Investor Relations Service, the funded entrepreneurs will also have a built-in list of investors (the Limited Partners) that will have access to the Monthly Updates – should those investors want to invest directly in the startup outside the fund.
Research
QSBS Funds
Solving The Funding Gap
This white paper describes how The Legacy Funds provides a more efficient path to funding for more startups and investors have access to venture funds that can deliver better risk-adjusted, after tax returns.
