The Quest to Make VC Investing More Accessible

By: Anneken Tappe · September 22, 2023 · Reading Time: 3 minutes

The Raise

The venture capital industry is traditionally exclusive and closed off to many investors. Bay Area-based startup Allocate is trying to change that by enabling wealth advisers and family offices to invest in venture capital funds.

Allocate just raised $10 million in new funding from investors including Gopher Asset U.S., Intera Investments, M13 Ventures, and various family offices, adding to the $23.5 million Allocate previously raised.

With this fresh capital, the startup aims to help venture funds diversify their limited partner base.

How Allocate Works

Allocate assesses hundreds of fund managers before selecting between 20 and 50 venture firms to partner with. These partnerships open up the investment opportunities to its customer base: investment advisors and family offices without existing relationships with fund managers or the means to make million-dollar commitments.

Allocate’s customers have invested more than $485 million already. The company currently charges an investment fee, and plans to charge subscription fees starting next year.

Accessible VC Investing

Venture capital investing is a volatile game with more failures than wins. But, if investors hit a homerun, it has the potential to make up for all of the failures — and then some.

Due to the elevated risk, investors in VC funds tend to be large institutions. But Allocate helps to make the asset class more accessible by reducing the time needed to evaluate fund managers, identifying the most promising opportunities, and minimizing fees and minimum investments.

But Allocate isn’t just a fund of funds. The company also helps clients avoid higher minimum investments and access a wider variety of funds that match their preferences.

While Allocate has broadened access to venture capital funds, it isn’t available to retail investors yet. In order to use the platform, you have to go through a family office, RIA, or private bank.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender