Do you agree? There’s nothing more thrilling than watching the young, edgy startup that you’ve helped fund, leap forward and grow wings. If you share that dream, then we’re a good match. Welcome to OurCrowd First.

How does it work? The OurCrowd First early-stage fund leverages the efficiency and ease-of-use of the world-class OurCrowd equity crowdfunding platform. The fund is raised on OurCrowd on an annual basis, and is set up with a traditional Limited Partners/General Partners structure.

Because of its dynamic, aggressive nature, unique value proposition, and reputation in the investor community, investor demand for OurCrowd First has been strong and the fund has been oversubscribed in the past. Nonetheless, OurCrowd is all about giving access to global investors. It’s in our DNA. And so our aim is to include a much wider investor-base than do most funds.

Aligned with our crowdfunding mindset, we are also deep believers in “crowdbuilding” — we welcome the support of our investors in helping our companies succeed: introducing them to potential partners, connecting them to customers, or helping them with feedback from experts they know in relevant sectors.

To learn more about investment in OurCrowd First, including investment terms, minimum investment size, fee structure, and current availability, register as an accredited investor on the OurCrowd platform here. An OurCrowd team member will reach out to discuss with you the current status of the fund.

Seed Investing: Fund Size and Returns

Seed-stage investments can often offer investors attractive opportunities as later stage startup valuations become more expensive. However, larger funds often struggle because the market does not produce sufficient exits of the necessary scale to return the value of the fund. Research indicates that smaller funds, such as OurCrowd First, consistently outperform larger early stage funds (Prequin; ThomsonOne).

As funds get smaller, however, other problems emerge. The management fees from small funds are often insufficient to support a professional team required for thorough due diligence and quality business development and mentorship. Likewise, small funds rarely have the financial firepower to meaningfully participate in subsequent portfolio funding rounds, and their stake can be dramatically diluted over time.

OurCrowd First has been structured to address both problems. The fund is small in size, but is owned by the OurCrowd General Partnership and is fully supported by OurCrowd’s experienced investment team, 10,000-strong community of accredited investors for critical crowdbuilding business development capabilities, established mentor program, operational infrastructure and more.

Additionally, the fund is structured in a way that allows us to offer the fund’s preemptive rights directly to our LPs on a pro-rata basis. Furthermore, follow-on rounds for OurCrowd First portfolio companies are envisioned to be raised on the OurCrowd platform, ensuring that these preemptive rights will not be lost and improving the likelihood that these portfolio companies will successfully raise their Series A.