This is your last chance to join Altea at $1,500 per year. The price will increase to $2,500 after next Friday.
If you activate your membership and don’t think you’ve got value out of Altea within three months, we’ll gladly refund your fee.
Table of Contents
Previous Deals – New Tricks
SignalRank Index
SignalRank is raising funds to invest in high-potential Series B companies using proprietary algorithms. It aims to transform investing in unicorns at Series B with a systematic approach.
Deal Basics:
- Investment Size: $5m per quarter
- Minimum Investment: $500k for individuals – $25k via Altea SPV
- Potential IRR: 25%
- Distributions: Preferred equity with 1.1x liquidation preference (10% hurdle) and 80% distributions thereafter. Management carry rises to 30% after 2.5x MOIC
- Deal Type: Private Equity/Venture Capital
- Deal Duration: Target 2025 IPO, with a secondary opportunity if there is no IPO by 2029
What’s Changed
Big update on this one, as CEO Keith Teare plans to take SignalRank public. Quote from Keith:
We are planning to list Signalrank on the NYSE. The process will take 6-18 months.
The catalyst is Destiny’s (DXYZ) listing, which you can think of as a much poorer version of an index for private companies (they own common stock on forward contracts from employees, mainly in SpaceX and Stripe).
Despite their limits, they are trading at 3-4x book value. They opened at 25x book value. Retail investor’s appetite for a private market index seems high.
Signalrank is the Rolls Royce version of the idea. We are now the third most prolific B investor in high-quality B rounds and eighth in all B rounds over the past 12 months, and our algorithms are performing super well.
Keith is working with Blackrock to get this over the line.
The upshots are:
- This is (probably) the last time shares will be available at $25
- He needs commits by June 30 (that’s nine days from now)
Watch my Q&A with Keith:
If you want to get in on this, please let me know asap so I can pull together commits.
We had about $125k interest in this before, and if we can pull that up to $500k, I’ll put together an Altea SPV to make it happen.
New Deals
Sweater – A Platform Powering Public VC Funds
Sweater Inc., a fintech platform aiming to democratize access to private venture funds, is seeking to raise $1.2 million.
Deal Basics
- Investment Size: $1,200,000
- Minimum Investment: $10,000
- Potential IRR: Target multiples are 10x-20x
- Deal Type: SAFE (Fintech, Venture Capital Platform)
Deal Overview
Sweater Inc. offers a unique fintech platform that enables retail investors to access private venture capital funds, traditionally reserved for ultra-high-net-worth individuals. Utilizing their proprietary technology, Sweater connects banks, celebrities, universities, and venture capitalists with America’s 150M+ retail investors. The company has previously launched Cashmere, the world’s first D2C VC fund, and is expanding to include multiple funds covering various asset classes.
Future Deals
Last week, I asked for EOIs for the deals below. Lots of feedback and interest in cash-flowing agave farmland and tequila barrels but less for a traditional wine opportunity. Make sure to add your name to any of the below if you didn’t do that already last week.
- A wine or champagne SPV targeting 12% to 15% returns – I’m interested in this.
- Cash-flowing agave farmland targeting 16% to 27% returns – I’m interested in this.
- Cash-flowing tequila SPV with annual distributions targeting 30%+ returns – I’m interested in this.
And as promised, we’re working on new opportunities to make sure Altea doesn’t become a boozy, art-loving two-trick pony.
We’re currently working to secure opportunities in both film and litigation finance. Read up on our deep dives into:
If the above sounds interesting, click the “I’m interested in this” button below.
- We’re speaking with two different sponsors in the film finance space, specifically looking at horror films, which bring the highest ROI of any genre. I’m interested in this.
- We’re still early in identifying opportunities, but it’s the most-requested asset class. We should have something good teed up within a few weeks. I’m interested in this.
Investor Field Trips
We should have a page put together for the Nashville trip next week. We’ve already locked in some killer guests and speakers.
Nashville
A music-themed investing adventure to Music City, USA.
- Est. dates: October 21 – 25
- Est. cost: $7,000 – $9,000
That’s it for this week. Any questions, comments, or suggestions, please shout.
Cheers,
Wyatt, Stefan, and John
