Investor Sign-On and Capital Commitment Process
The VPF will be available through the Equitybee platform in the main directory listing of available offers. Click the VPF tile to view the offer page and reserve your allocation. You will be prompted to complete your investment account and review/sign the investment documents. Once approved by the Broker Dealer, you will be approved for the investment. Upon closing of the Fund, the wire instructions will be shared through the platform.

-  Target fund life: 5 years
-  Investment period: ~12-18 months
-  Annual Management Fee: None
-  Brokerage Fee: 5% applied when capital is deployed to each underlying investment
-  Carried interest: 10% applied at the VPF level
-  Minimum commitment per investor: $100,000

A liquidity event is an acquisition, merger, initial public offering (IPO), tender offers, or any other event at the company that allows shareholders to cash out some or all of their shares.

Following a successful liquidity event, the VPF will receive its principal, interest, and a portion of the stock value. When a liquidity event occurs at a price per share less than the investment price per share, VPF first receives all available funds to recoup the original investment amount. The employee will not receive any proceeds in this event. The employee has the option to settle in either cash or shares after the end of any applicable lockup period. If VPF receives shares after a liquidity event, the Manager will first sell the shares before distributing cash to investors. The VPF will distribute any aggregated proceeds quarterly.

Equitybee is a marketplace to bring investors and employees needing stock option funding together.
Equitybee gives investors access to these startup companies by funding employee stock options.
1. Investors provide capital
2. Employee uses capital to exercise stock options
3. After a successful company liquidity event, employee pays investor:
- Principal Investment
- Any accrued annual interest
- Percentage of total value at time of liquidity event

Secondary trading involves buying or selling shares outright, while Equitybee facilitates the funding of employee stock options (via a variable prepaid forward contract) rather than purchasing shares. The secondary market allows VC funds and other shareholders that invested in the company in the earlier stages the opportunity to realize their investment before a potential initial public offering (IPO). So, venture investors or company employees are selling earlier investments at later stage valuations. When investing in a secondary, you directly own equity in the company and are represented on the cap table.

Investing with Equitybee allows you to invest in later stage companies, but at earlier stage valuations, via vested employee stock options. The investment is in the form of a variable forward contract, and at the time of a successful liquidity event, the employee pays the investor the relevant proceeds. You own an interest in the forward contract, not in the underlying stock. The employee retains ownership of the equity throughout the process, but may choose to settle the contract  in publicly traded shares after a liquidity event.

Secondary funds buy and sell shares through secondary transactions (see Secondary vs Equitybee above)The main differences between VPF and a traditional secondary fund are:
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- Investment Access: Traditional secondary funds usually acquire shares from early investors / founders / executives, which is a time-consuming process that requires company and board approval involving ROFR provisions. As a result, secondary funds enjoy very limited investment access. On the other hand, VPF will fund startup employees' stock options through the Equitybee platform using variable prepaid forward contracts, which allows VPF to  gain exposure to virtually any startup in the market without needing company/board approval.

- Discount investment price:VPF will leverage Equitybee’s unique investment framework that allows for entry prices that are typically more compelling relative to those of secondary funds (e.g., Equitybee's historical median discount is ~76% relative to a company’s most recent preferred share price).

- Investment strategy:VPF will target a largely diversified portfolio of 120+ companies, whereas typical venture secondary funds will target more concentrated portfolios of ~20 companies. However, research shows that larger portfolios (100+ companies) tend to (1) increase the likelihood of generating higher returns and (2) decrease the dispersion of returns. Note that venture secondary funds will typically target net IRRs of 15%-20%.

Traditional VCs typically have a handful of partners, who only have so much bandwidth to perform due diligence on target companies, then they take board seats and provide ongoing support to their portfolio companies. The amount of exposure is often capped such that any one VC fund may have to the broad startup industry.
These constraints generally limit the portfolio size to about 10-30 companies. But with the Venture Portfolio Fund and using Equitybee’s unique investment structure, investors can access a broadly diversified fund, gaining exposure to top startup companies at earlier valuations.