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Building a Case for Investing in Startups

After deciding to get more involved in startup investing, the next step for a serious investor is to plan for
diversification. Diversification is a fundamental strategy for hedging risk in any asset class. Spreading
investments across different sectors and stages can statistically decrease structural risk and improve the
ROI of the overall portfolio. With OurCrowd’s Portfolio Reserve, accredited investors can easily build
diverse startup portfolios.

About Portfolio Reserve

Portfolio Reserve is similar to a self-directed mutual fund of startups, with a few important caveats.
Portfolio Reserve is a way to pre-fund an escrow account and simplify the investment process. Investors
choose a default allocation amount for new deals and maintain full discretion over their investments.
Portfolio Reservists receive VIP treatment and are never put on a waiting list for oversubscribed investments.
The minimum to open a Portfolio Reserve is $100k with allocations starting at $5k per company.

Primary Benefits

  • Build a startup investment portfolio with minimal paperwork
  • Reserve a spot in every new investment - even the highest-demand opportunities - while retaining the right to opt out of any investment
  • Start with a minimum $5K investment per startup for greater diversity

Watch the video below to learn more about how Portfolio Reserve works. To speak to an OurCrowd representative, please fill in the form to the right.

How It Works

FAQS

How does it work?

For investors seeking to build a diverse startup portfolio, Portfolio Reserve is a way to pre-fund an escrow account and simplify the investment process. Investors choose a default allocation amount for new deals and maintain full discretion over their investments.


What is the minimum? 

The minimum to open a Portfolio Reserve is $100k. Allocations start at $5k per company.


Who decides in which companies I invest, and how much I invest?

Portfolio Reservists are automatically allocated into every new company in which OurCrowd invests. When an investor opens a Portfolio Reserve, they decide up front their default allocation for the investment. With proper notice, they can change this amount per investment. 


Do you invest in every deal? If so, how much does OurCrowd invest?

OurCrowd diligences, curates, and ultimately invests in roughly 2% of the deals we see at a pace of roughly one new investment per week. We invest our own funds into each deal.


Is allocation guaranteed for every deal? What about follow-on rounds?

Portfolio Reservists are not automatically reserved allocations in follow-on rounds and need to inform their Investor Relations contact to opt into the investment.


How long do I have to decide on a new investment?

Investors have a 7-day opt-out period to decide if they do not want to participate in a new investment opportunity. 


Is there a difference in fees for Portfolio Reserve?

No, Portfolio Reserve is a tool to simplify the investment process. Your investments are in individual companies. You can find more information on OurCrowd¹s fee structure on the website: www.ourcrowd.com. 


In the event of an oversubscription, what happens to my investment?

Portfolio Reservists are never put on a waiting list. In the event that one of our companies is oversubscribed, Portfolio Reservists are guaranteed at least a minimum, pre-defined allocation.


What if I don’t like a company?

Investors can cancel the deal online or notify their Investor Relations representative by sending an email stating the preference to opt out of the particular deal. If the notification happens on a phone call or in person, the Investors Relations contact will email the verification of this request to the Portfolio Reservist. 


Can I increase my account later on? 

Yes. Once investors’ Portfolio Reserve funds have been fully allocated and deployed, they receive a notification asking whether to refill the active balance.


Do I collect interest on my funds once transferred?

Investor funds remain in a non-interest bearing escrow account (JP Morgan Chase) until deployment. Funds are reserved and allocated into new companies at the time of launch on the OurCrowd platform.


What if I want to cancel the account?

If you decide to cancel your Portfolio Reserve or would like a refund of the unallocated balance, OurCrowd will return your funds within 30 days.


How does this save me time and make investing easier?

You sign one set of documents and make one wire transfer. This would save you time (and money) on completing documents and wiring for individual deals. 


What kind of documentation do I need to provide and sign?

If new to OurCrowd, there are standard documents required to complete. For Portfolio Reserve, there is one document which needs to be signed on a once-off basis. 


See here for the full Terms and Conditions.
Still have questions? Contact us.

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