SumuFund files for registration of public fund that will allow millions of Americans to invest in startups.
Columbus, OH, May 05, 2015 –(PR.com)– When it comes to startup investing, the team at SumuFund likes to ask, “What if?” SumuFund announces today that it has formally registered with the Securities and Exchange Commission to become a public, non-traded, closed-end fund that will focus on investing in startups. The launch of SumuFund will bring new startup investment opportunities to millions of Americans.
“The first question our team tackled was: What if startup investing could be open to everyone?,” says SumuFund Founder Will Zell. Traditionally, only high-net-worth individuals and institutions, or what are known as qualified accredited investors, have been able to invest in startups.
But SumuFund will be open to both accredited and suitable non-accredited investors. “SumuFund’s innovative financial structure will open startup investing opportunities to millions of Americans,” says Zell. He notes that SumuFund is a distinctly different approach to equity crowdfunding than the JOBS Act. When it comes to startup investing, Zell says, “SumuFund offers the best scenario for both investors and startups.”
The SumuFund team next posed the question: What if there was a professionally managed fund that allowed individuals to invest in a portfolio of startups — like a mutual fund for startups? “Mutual funds make life easier,” says Zell. “They simplify investment decisions and diversify risk over an entire portfolio.” SumuFund provides this same benefit for startup investing; it will be a professionally managed public fund that will allow investors to invest in a portfolio of startups. However, SumuFund’s model will eliminate many of the fees typically associated with public funds, allowing more investment capital to be directed to startups.
Central to SumuFund’s strategy is their team of experienced Wall Street investors and entrepreneurs who know how to find the best investment opportunities. “Thorough due diligence is a key factor to successful startup investing,” says Flavio Lobato, Managing Partner at SumuFund and IKOVE Capital Partners and formerly at Liongate Capital Management and Goldman Sachs & Co. “SumuFund’s team knows what it takes to build a successful startup, and when to invest in one.”
SumuFund will also provide valuable services for entrepreneurs. “Access to a wide network of investors, mentors, and business advisors is a powerful feature of equity investing — but with that can come big challenges,” says Zell. SumuFund will be responsible for regulatory disclosures, and will help manage relationships with investors. This will free entrepreneurs up to focus on what they do best: building successful companies.
“SumuFund is the best option for non-accredited investors to begin investing in the next great startups,” says Zell. The SumuFund registration has been filed with the SEC and will go through a review and commenting period, typically lasting 90-120 days. Once approved, investors will be able to invest in SumuFund directly through its website. SumuFund invites investors and entrepreneurs to visit www.sumufund.com and start asking: “What If?”
The securities to be offered by SumuFund may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
SumuFund will also be at the Collision Conference, May 5-6, Las Vegas.