The Unicorn Index Fund (UIF) is a venture index fund that tracks an overlying index of the Top 50 US-domiciled venture-backed private companies including, SpaceX, Stripe, and Fanatics. The UIF provides investors exposure to a basket of sought-after brand names in a low-fee, liquid vehicle.
OPEN charges a 2% management fee and no performance fee - significantly cheaper than traditional VC fees of 2% & 20%.
OPEN plans to hold 30-40 of the top 50 constituents as determined by the Unicorn Index.
OPEN is purchasing these securities on the secondary market, where many companies are trading at significant discounts to last primary round.
Historically, pre-IPO is a great time to buy
Late-stage venture capital investments typically generate higher returns than any other stage in the asset life cycle.
On average, participating in private markets results in a 66% gain on investment six months after IPO, while purchasing at close on first IPO trading day results in a 1.4% loss.*
Mean Annualized Returns 6 Months After IPO
*Source: Manhattan Venture Partners, Pre and Post-IPO Returns Analysis. May 9 2022.
With all that in mind, would you rather own fund units in:
Traditional VC Growth Fund
Fees: 2% Management Fee, 20% Carry
Holdings: 7-8 of the largest 50 Unicorns
OPEN Unicorn Index Fund
Fees: 2% Management Fee, 0% Carry
Holdings: 30-40 of the largest 50 Unicorns