How should Entrepreneurs approach fund raising? Brand or NO BRAND?

Venture Capital (VC) provides financing to early stage emerging companies with high growth potential in exchange for equity / an ownership stake. The market is flooded with various funding options, so how should an Entrepreneur approach fund raising?

According to Pitchbook in 2024, 30 firms raised 75% of all capital raised by VC funds in the US. If you look at the Forbes Next Billion-Dollar Startups 2024, almost all the startups listed in there are being funded by Branded VCs. However, what are the advantages of working with a branded or non- branded VC?

Working with a branded venture capital fund, one that is well-known, reputable, and established in the industry offers several advantages for startups and entrepreneurs:

Easy Access to Large Pool of Capital

Branded VC funds have deeper pockets, enabling them to invest in multiple funding rounds (Seed, Series A, B, etc.), providing continued financial support a startup needs. They also have the ability to write bigger checks, which is an attractive feature especially if you are in certain capital incentive businesses like AI, etc. Plus a branded VC can easily open doors to other top-tier institutional investors.

Network Effect

Branded VC funds often have solid relationships with industry leaders, potential customers and partners. Entrepreneurs get attracted to this feature as it gives them a foot in the door when it comes to enhancing Sales. Established VCs often have a global footprint, which can help startups expand into new geographic markets with introductions and strategies.

E.g. Accel and other major investors supported Spotify, gained access to industry leaders and strategic relationships that facilitated its entry into multiple geographic markets. Leveraging VC connections, Spotify secured key partnerships with music labels globally, driving its dominance in the US, Europe, and other emerging markets.

Increased Credibility and Validation

Securing investment from a branded VC signals the market that your business has been vetted and validated by a trusted and experienced firm. This can attract other investors, customers, and strategic partners. Being backed by a top-tier VC also differentiates startups from competitors when seeking talent, customers, or additional funding. It positions the company as a leader or innovator in its space.

Expertise

Branded funds usually have experienced partners who provide mentorship, industry insights, and hands-on operational and other advice. They may assist with growth strategies, fundraising, financial planning, and market positioning. If pursuing an IPO, branded VC funds also have the experience guiding companies through the process and strong ties with investment banks. Branded VC firms have a track record of successful exits, such as high-value acquisitions or IPOs. This success enhances confidence from other investors and potential acquirers. 

Market Visibility

Startups backed by well-known VC firms often receive increased media coverage, brand recognition, and market trust. This visibility can attract customers, potential hires, and partnerships more quickly.

Competitive Valuation

Believe it or not, VCs often suffer from an emotion – FOMO. This herd behavior drives valuation of certain startups to a new level as their desire to invest in the next "unicorn" and avoid missing out on a potentially massive return opportunity. Startups with a significant buzz, strong teams, or disruptive business models can secure valuations that may exceed typical market metrics.

In summary, working with a branded VC provides more than just capital - it unlocks strategic advantages that can accelerate growth, enhance credibility, and pave the way for long-term success.

Working with a non-branded venture capital fund, a lesser-known or emerging fund, can also offer unique advantages, especially for startups that may not align with the priorities or conditions of established VC firms.

Willingness to Take Risks

Non-branded funds are often more open to investing in unconventional ideas, niche markets, or riskier early-stage businesses that branded VCs may pass on. Some smaller VCs are willing to wait longer for returns, providing startups with time to refine their products and scale sustainably.

Mission Driven

Non-branded funds may align more closely with founders’ long-term visions, offering patient capital and understanding the unique challenges of early-stage startups. They often prioritize building successful businesses over short-term returns. 

Easier to Secure Funding

Startups that struggle to gain interest from branded VCs due to industry focus, stage, or traction are more likely to secure investment from a non-branded VC. Lesser-known VCs may be more approachable, with fewer startups vying for their attention and funds.

Flexible Investment Terms

Non-branded VCs may be more willing to negotiate terms such as equity stakes, board seats, or liquidation preferences compared to larger, branded funds. They are often less aggressive in imposing control, allowing founders to retain more decision-making power.

Greater Focus and Attention

Smaller VCs typically manage fewer portfolio companies, meaning they can dedicate more time, attention, and personalized support to each investment. Founders often develop stronger, more collaborative relationships with non-branded VCs, fostering trust and mutual growth.

Opportunity to Build Together

Emerging VCs are often looking to build their reputation and track record. They may work harder to ensure their portfolio companies succeed, as the success of those companies directly contributes to the fund's brand growth. Startups benefit from this extra effort and collaboration.

Entrepreneur Friendly

Non-branded VCs provide flexibility for startups to experiment with unconventional or innovative business models. Further, studies show that approximately 40% of startup founders leave their companies before reaching IPO, sometimes due to board pressures or performance concerns. I personally believe, “if founders can start or build a company, they should be able to scale their business”. 

Faster Decisions Making Process

Smaller funds generally have fewer bureaucratic layers, leading to quicker investment decisions and faster access to capital. This agility can be critical for startups that need to move quickly in competitive markets.

Non-branded VC funds can provide flexibility, closer relationships, and greater risk tolerance, making them ideal partners for early-stage, niche, or unconventional startups. They often prioritize personalized support and sustainable growth over rigid expectations and short-term returns, enabling founders to maintain control and align with a partner who believes in their long-term vision.

In the end the decision boils down to who you are, what kind of a startup you have, and if you ultimately want to build your company with the person or the VC sitting on the other side of the table? Yes or No?

Source: Pitchbook, Little Experience, and ChatGPT

Learn more about Ms. Desai at www.nindesai.com

About Ms. Nin Desai: 

Ms. Nin Desai is an experienced fund manager and a technology geek. Her sweet spot is investing in disruptive technologies. Her experience spans all facets of mergers and acquisitions, and corporate finance including public offerings and private placements from private equity to investment banking and investment management. Her corporate finance transactions include RACK, LOOP, LQDT, DBTK, AMIS, SLRY, VOCS, OWW and others. Her M&A deal sheet includes the sale of Financial Profiles to EISI, Buyseasons to Liberty Media, sale of Sircon to Vertafore, and others. She holds an B.B.A and M.B.A in Finance / International Business from Loyola University of Chicago, and most recently attended leadership program in Private Equity and Venture Capital at Harvard Business School. 

Ms. Desai has been awarded 2015 CEO Of The Year – Illinois, for innovation and contribution to the Venture Capital & Private Equity industry by Acquisition International magazine and Private Equity Fund Manager to Watch for 2017 by Corporate America to name a few.

She has been featured in VentureBeat, Chicago Tribune, Chicago Sun Times, Forbes, Inc, WGN's After Hours with Rick Kogan, NBC Weekend Web with Charlie Wojciechowski, Bloomberg's Taking Stock, Crowdfund Insider, and CIO Review to name a few. 

The Perfect Relationship Between a VC and an Entrepreneur

 

“Being a successful VC boils down to the ability to make good investment, which comes from good judgment. Good judgment comes from experience and this comes after making bad investments.”

VCs come from different backgrounds, some have operating experience, while others have investment banking and / or a MBA. Just like there is no secret recipe for success, there is no set template on what makes a good VC. However, here are a few things to look for…

1. Vision

VCs like to invest in businesses that are globally scalable. An Entrepreneur might have a great idea but a VC will give him/er the vision to take the product to market, which requires a VC to be a dynamic thinker with business acumen and great conviction.

2. Mutual Trust and Respect

Venture Capital is a long term game and in order for you to survive the challenges that come along the way, there needs to be mutual trust and respect between VC and the Entrepreneur. It is said that opposites attract, find a VC that balances the scale when it comes to achieving common goals of progress for all parties involved.

3. Personality Traits

A relationship between a VC and a Company is parental, so make sure that the VC you pick is patient yet persistent. S/he is creative and a problem solver and also inspiring / motivating at the same time.

4. Resourceful

It is important that your VC has a network you can leverage while you embark on your journey towards growth, but more important to check if the VC is willing to invest the time and attention needed for your startup to succeed. One way to measure this is how many board seats does the VC hold, will they have enough time on their agenda to provide you the guidance needed for your startup.

5. Emotional Regulation

Being a VC is a tough job, which often makes a VC come across as cold hearted. However, the best VCs have emotional connections as well as positive relationships with their portfolio companies. They don’t let this affect their decision making when it comes to crunch time. The hardest part of being a VC is deciding whether to let your underperforming companies die gracefully, die-hard, or to put in the effort to help find a safe home for the company. Being too quick to let companies die leads to underperformance as a VC, but investing good money after bad can also quickly lead to little or no return. How you manage your follow-on investments, and how you help your worst companies without investing more capital, is a huge part of being a great VC.

Lessons Learned Along the Way...

 

As rightly said, launching a venture is about having a vision, turning that idea into reality, and then pursuing that dream. While the concept is simple and can be condensed in a line, the startup journey is long and there are many lessons to be learned along the way. Here are a few I encountered at NIN Ventures (or NIN.VC):

 

01. Remove your emotions

While it is hard to pursue a dream when you don’t have emotions attached to it. Stop thinking about your start up emotionally. Why? The startup world moves fast and requires you to fail faster and pivot into a better direction. Your emotions crowd your judgment when you get too attached to your dreams. Let loose and let the market guide you towards success. 

 

02. Sign better contracts

We have all heard of spit handshakes or stories of how a business plan was drafted on a paper napkin during a coffee conversation. While it might have worked in the past, beware and draft a legal agreement for all your partnerships. 

 

03. Premature scaling

Every startup dreams of becoming a Unicorn but, I have experienced, achieving too much success in the beginning may become a hindrance for future growth. 

 

04. Design a culture of winning

It is important to win in life, but build a culture of winning where you appreciate a team winning over individual wins. Make it your mantra to “always give advice in the best interest of the team over yourself”.

 

05. Consider how much you will need to educate the target market about your product before starting your business

It is not easy to take your idea to market even when there is a need for disruption in the industry. Make sure you are educating people about the problem you are solving and the time you will need before you take your product to market.

 

06. Don’t underestimate the power of marketing

Just don’t. 

 

07. Build you technology in-house

Outsourcing is an attractive cost saving option when you are building the framework for your technology, but it will cost you more time and money in the long run. Instead opt for a partner or hire someone full time that can better understand or has expertise in the area. 

 

08. Running out of money is game over

Don’t die. 

 

09. The blame game

Some businesses fail because they could not find a product market fit, while others made poor strategic decisions that ultimately led to their demise. Regardless, confront brutal facts and don’t burn bridges with your partners, customers, or anyone you might have encountered during your journey. If they were not the answer, they were a lesson or part of the lesson. 

 

10. Pick your mentors wisely

Who you look up to in life determines where you end up. Find people that genuinely want you to succeed in life and care for your venture. 

 

Having said all of this - “Will I spend my last dollar and all my hours to have this opportunity again?”. Yes - IT'S WORTH IT! Why? Life is not about what you want - it's about what you deserve. And if you don’t like what you deserve, keep your head down and work harder!!!

 

PS: This blog is still Work In Progress. I will update it as and when I have more to say. Thank you for reading!

 

For latest and greatest about me, visit www.nindesai.com

Rise and Fall of an Industry - How good ideas fail?

We have all heard of the magic mantra, “Failure is the stepping stone to success”. Such is the story of the Crowdfunding industry and NIN Ventures (or NIN.VC). 

Crowdfunding is a practice of funding a project or venture by raising contributions from a large number of people, typically via the Internet. The 2008 Financial meltdown led to a liquidity crises for entrepreneurs, companies, LPs and VCs. Fewer IPOs in the market means no exit for VCs, no returns for LPs, and as a result venture funds were on a decline. No new funds means less startup funding, higher unemployment, and slower economic growth. Thus, on April 5, 2012, the Jumpstart Our Business Startup Act (the JOBS Act) was introduced, enabling crowdfunding for “accredited” Americans. 

There are various types of Crowdfunding options; like donation, reward, lending, equity, royalty, and even hybrid versions. However, the two most popular types of Crowdfunding methods are Reward and Equity. For Reward based Crowdfunding, entrepreneurs pre-sell a product or service to launch a business, and some times even in return for gifts or thank you notes. For Equity Crowdfunding, the backer receives share of a company, usually in exchange of the money pledged. For NIN Ventures, it would be a limited partner interest in the NIN Ventures Technology (QP) Fund. This offering was made available online (www.nin.vc) via general solicitation and general advertising, which is permitted by Rule 506(c) as contemplated by Title II of the JOBS Act. 

Since its beginning, Venture Capital has been the domain of wealthy individuals and families. A typical LP base in a venture fund would be institutions, pension funds, endowments, family offices, etc. We are all indirectly invested in Venture Funds, but Crowdfunding is an attempt to bring Venture Capital directly to the retail investor by eliminating the middleman. If all other businesses that follow this route have succeeded, why and where did Crowdfunding fail? 

Since 2014, the Crowdfunding industry had grown from $16 billion to $34 billion (with roughly $8 billion in Reward and Equity) in 2015; and was doubling or more every year, and according to the World Bank estimates, Crowdfunding was predicted to have a global market of $96 billion by 2025 – 1.8 times the global Venture Capital industry. However, recent studies showed that while the Crowdfunding industry has managed to grow, the Venture industry has outgrown the Crowdfunding industry. As of 2022, the Crowdfunding industry was estimated to be $125 billion (with $19.79 billion in Reward and Equity) vs. $234 billion for the Venture industry. 

Here are a few reasons why I think Crowdfunding and / or NIN Ventures failed: 

01. Awareness 

Any new industry needs to be promoted and positive marketing generally adds fuel to that fire in order to gather public interest. The Government was quick to make changes in order to save the Economy but did not follow through when it came to properly marketing the concept. The Crowdfunding Companies fell short when they tried self-promotion. We are all aware of Environment or Unemployment issues but how many people have actually heard about the JOBS Act? 

 

02. Education 

Venture Capital provides financing to early stage emerging companies with high growth potential in exchange for equity / an ownership stake. The risks VCs take investing in disruptive technologies or business models yield higher returns to their limited partners (or investors). Since the beginning of the 20th century, venture capital has been the domain of wealthy individuals, families, and institutional investors. While many of us are indirectly invested in venture funds via our pension funds, etc., most people have knowledge or a portfolio that is limited to stocks, bonds, mutual funds, money market instruments among others. While there are multiple resources available on how to make a good judgment when making a venture capital investment, it is likely that 99% of the times the individual might be proven wrong. Blind pools of money or venture funds are not encouraged by the SEC as they are prone to fraud, when it comes to Crowdfunding. Many are also not aware of redemption and other liquidity issues including lack of interest in the secondary market. 

 

03. Media Interest 

This lack of knowledge is further fueled by limited interest in the Media for Crowdfunding portals and companies. Speaking from personal experience, general solicitation and general marketing for Venture Funds had never been attempted before NIN.VC, so the questions and awareness that a journalist had were limited to his / her past experience rather than focusing on Crowdfunding as a business or industry. 

 

04. Governance 

Entrepreneurs are brave and courageous bunch that are determined to change the way an existing industry functions. On that journey, they need a lot more than just financing. They need guidance or domain expertise, help with PR/marketing, recruiting, viable exit strategy, more often follow up financing, etc., which Crowdfunding portals are not able to support given they don’t get a say or board seat for their investments. 

 

05. Trust 

Given the majority of Crowdfunding companies or start ups don’t make it, most people are now focused on failures and a few highlighted fraud cases glorified by the media, which raises trust issues in an already heighted risky environment. 

The SEC has now approved Title III JOBS Act, Equity Crowdfunding for non-accredited investors, which allows any U.S. citizen, regardless of income, to make direct investments via a Crowdfunding portal. However, investment in venture funds is still limited to accredited investors. Given funds are a less riskier asset class compared to Crowdfunding in companies, perhaps it’s time to revisit their investor eligibility, alter the definition of an accredited investor, and make Crowdfunding available for everyone. Until then, are American people given the wrong kind of freedom when it comes to their investment decisions? What is your freedom of choice worth here?  

PS: Given the current circumstances, we would like to inform everyone that we have closed doors on our beloved NIN Ventures (or NIN.VC). However, we will be sure to follow up this article with the lessons learned during our journey and what is next in store for us? Thank you for your time and continued interest! 

Source: 

Masssolution 2015CF 

Vantage Market Research and Precedence Research 

Crunchbase

Investing:101 with NIN.VC

Venture Capital until now was the domain of the super wealthy and institutions, but NIN Ventures (or NIN.VC) is a unique and first of its kind crowdfunded technology venture capital fund for accredited investors who can invest in the NIN Ventures Technology (QP) Fund with a minimum amount of $100,000 using multiple investment options like self-directed IRAs, Defined benefit plan, or a regular checking / savings account. NIN.VC invests in Series & B rounds of disruptive technology companies.

1. What are the few main criteria to consider when investing in a venture capital fund?

The top three criteria any investor should look for in a venture fund is team, experience, and honesty / transparency. As far as returns are concerned, Technology focused funds generally tend to outperform USVC (United States Venture Capital) Index. Historically, USVC Index tends to outperform both USPE (United States Private Equity) Index and S&P 500. Also, unlike popular belief generally First time funds tend to outperform Non-First-Time funds and All Venture Capital funds.

2. Can you explain in detail how does venture capital returns compare to other asset classes?

Most people are familiar and have a three dimensional portfolio (i.e. stocks, bonds, and mutual funds), but if you look at Harvard and Yale’s portfolio, they a take a long-term approach and invest in alternatives like venture capital. E.g. Yale is currently the best performing endowment fund in the United States and its venture investments returns exceeds all other asset classes. Since 2008 to 2018, Yale has increased its asset allocation in Private Equity / Venture Capital from 20.2% to 33.1%, out of which 19% is venture capital, compared to 13.7% in 2014 and just 10% in 2013. Yale’s target venture capital allocation for 2018 was 18.0%, which exceeded the 5.5% actual allocation of the average educational institution. Yale’s venture capital portfolio is expected to generate real returns of 16.0% with risk of 37.8%. Over the past twenty years, its venture capital program has earned an outstanding 165.9% per annum. 

Yale Asset Type	Allocation	Return
Absolute Return	26.10%	4.80%
Domestic Equity	3.50%	6.00%
Fixed Income	4.20%	0.50%
Foreign Equity
Emerging Equities	8.50%	7.50%
Developed Equities	7.00%	6.00%
Leveraged Buyouts	14.10%	10.00%
Natural Resources	7.00%	6.40%
Real Estate	10.30%	5.50%
Venture Capital	19.00%	16.00%
Cash	0.50%	N/A
*As of June 2018

3. What are some of the hottest tech market segments you are currently looking at or investing?

NIN.VC invests in Series A & B rounds of disruptive technology companies. A disruptive technology is an innovation that changes an existing industry and also helps create a new market and value network, displacing an earlier technology or a way of doing business. Some of the sectors we are currently focused on are 3D printing, the 4th industrial revolution, cloud computing, virtual reality, financial services, education software to name a few. 

4. When should one start investing in a venture capital fund? When should one expect returns?

A typical investor base in a venture fund would be institutions, pension funds, endowments, etc. NIN.VC is a unique and first of its kind crowdfunded technology venture capital fund for accredited investors. While there are restrictions on who can invest in NIN Ventures Technology (QP) Fund, it is never too late to start investing in venture capital. One must be an accredited investor and verify themselves as an accredited investor to invest in the NIN Ventures Technology (QP) Fund. However, note that Venture capital is a long term investment and the life of the fund ranges from ten to sometimes twelve years with returns coming in as and when exits occurs in the form of an IPO or M&A, which could be five or seven years into the life of the fund.

*An accredited investor is an individual with an income of more than $200,000 per year, or a joint income of $300,000 in each of the last two years OR has a net worth exceeding $1m either individually or jointly with his or her spouse, excluding the primary residence. For an Entity, any trust, with total assets in excess of $5 million qualifies.

5. How can one invest in NIN.VC?

NIN.VC is a unique and first of its kind venture capital fund that is offered online. One can visit www.nin.vc and SIGN UP. Sign up is simple, first name, last name, email, password, and acknowledge you are on accredited investor. Once you sign up, you get access to our marketing materials (i.e. PPM, Investor Presentation, and Other suggested readings). You get invited to attend our events and calls. You can also schedule a one on one meeting with us at our office or online via skype. Once you decide to make an investment accept the risk and disclosure statement that will explain what venture capital investment is. The next step is to verify accreditation. Once that is in order, it’s only a matter of filling out subscription document and a W9 Form on www.nin.vc. The last step is payment and it’s as simple as selecting the payment method, and the amount you wish to invest.

FinTech Today: Crowdfunding

The United States Financial market is the largest and represents 7.3% (or $1.4 trillion) of U.S. gross domestic product. In 2015, the United States exported $119.6 billion in financial services and insurance and had a $46.7 billion surplus in financial services and insurance trade (excluding re-insurance, the financial services and insurance sectors had a surplus of $88.4 billion). The financial services and insurance sectors employed 6.2 million people in 2016. The securities subsector of the industry shows great potential for employment growth, with a 12% increase expected by 2018. At the end of 2016, 933,700 people were employed in the securities and investment sector.

Investment in the U.S. financial services industry offers significant advantage for financial firms. In 2015, at least 130 of Fortune's Global 500 companies have chosen to locate their headquarters in the United States to take advantage of its creative, competitive, and comprehensive financial services sector. The industry offers the greatest array of financial instruments and products to allow consumer to manage risk, create wealth, and meet financial needs. The five major subsectors in this industry are: banking, asset management, insurance, venture capital, and private equity.

Banking: As of the end of 2016, the U.S. banking system had $16.8 trillion in assets. It supports the world’s largest economy with the greatest diversity in banking institutions and concentration of private credit. In 2016, its net income was up 5.0% to $169.3 billion. 

Asset Management: The U.S. asset management subsector is unrivaled in its depth and diversity. U.S. asset managers are currently meeting the pension management needs of over 60% of the global retirement market.  Total U.S. retirement assets were approximately $26 trillion at the end of 2016. Moreover, if insurance assets and mutual funds are included, U.S. asset managers held nearly $51 trillion of long-term conventional assets under management in 2016, or over 47% of the global total for these funds.

Insurance: In 2015, the insurance industry’s net premiums totaled approximately $1.2 trillion. According to NAIC data, premiums recorded by life and health insurers accounted for 45%, and premiums by property and casualty insurers accounted for 55%. Additionally, about one-third of all reinsurance sold worldwide is bought by U.S. firms. International insurance companies are actively seeking business partnerships and collaborations with U.S. insurance companies.  

Venture Capital: The venture capital industry was created in the United States and our venture capital ecosystem continues to support many of our most innovative companies. In 2016, 253 venture capital funds raised $41.6 billion, a ten-year high, to deploy into promising startups. Venture Capital backed companies employ 38% of the U.S. workforce within public U.S. companies and account for 82% of private sector research and development since 1979. Annually, VC backed companies have historically generated revenue equal to 21% of U.S. GDP. (Source: Stanford University and NVCA)

Private Equity: U.S. private equity firms invested more than $644 billion in U.S.-based companies in 2016. The private equity industry in the United States comprises nearly 4,500 investment firms, operating U.S. based businesses in all 50 states. Companies backed by U.S. private equity firms employ 11.3 million people in the United States and 19.6 million people worldwide. In 2016, business services and consumer-related businesses attracted the majority of U.S. private equity investment. Source: The International Trade Administration (ITA), U.S. Department of Commerce

Over the years technology has changed the Financial Services industry and now FinTech has transformed into digital banks and banking software, payments and remittances, robo advisors and personal finance, block chain and digital currencies, and personal finance both business and consumer. While the total size of the US Fintech market is difficult to reconcile, it is likely between 0.5% and 1.5% of total financial services revenue as reported by the US Census. 

The 2008 Financial Meltdown led to a liquidity crises for entrepreneurs, companies, LPs, & VCs. Fewer IPOs in the market means no exits for VCs, no returns for LPs, and as a result venture funds were on a decline. No new funds means less startup funding, low employment, and slow economic growth. Thus on April 5, 2012, The Jumpstart Our Business Startups Act (JOBS Act) was introduced, which enables crowdfunding for all Americans.

Crowdfunding is a practice of funding a project or venture by raising contributions from a large number of people, typically via the Internet. The market is flooded with various types of crowdfunding options like donation, reward, lending, equity, royalty, and even hybrid versions. Since 2014 the crowdfunding industry has grown from $16 billion to an estimated $34 billion in 2015 and is doubling or more every year, and according to the World Bank estimates, crowdfunding will have a global market of $96 billion by 2025 - 1.8 times today’s global Venture Capital industry. The two most popular types of Crowdfunding methods are Reward and Equity. For rewards based Crowdfunding, entrepreneurs pre-sell a product or service to launch a business, and some times even in return for gifts or thank you notes. For equity Crowdfunding, the backer receives share of a company, usually in exchange of the money pledged. For NIN Ventures (or NIN.VC), it would be limited partner interest in the NIN Ventures Technology (QP) Fund. However, there is a major flaw with Crowdfunding in general; and that is what NIN.VC is solving. 

"I come from an Entrepreneurial family so I can speak on their behalf. Entrepreneurs are brave and courageous bunch that are determined to change the way an existing industry functions. On that journey they need lot more than just financing. They need guidance or domain expertise, help with PR/marketing, recruiting, viable exit strategy, more often follow up financing, etc., which Crowdfunding portals are not able to support.

On the other hand Crowdfunding exposed investors to a whole new asset class, which the normal population never had the knowledge or expertise to invest in. About 99% of startups fail, on top of that low minimum investments like $1,000 does not give them a say or a board seat, putting investors at high degree of risk.

At NIN.VC we solved all of those issues. NIN.VC provides diversification, we take board seat on all our investments and lend the necessary support that an Entrepreneur needs to build a business, like they would get at a traditional Venture Capital fund. And are also in a position to gauge and be a part of the valuation process when it comes to addressing dilution and follow up financing rounds. However, the most IMPORTANT part that investors cares about is the ability to direct invest and enjoy direct returns, which is not the case with a traditional venture capital fund."

NIN.VC is a Crowdfunded Technology Venture Capital firm offering membership interests under the JOBS Act & Regulation D of the US Securities Act of 1933. NIN.VC is a unique and first of its kind attempt to bring Venture Capital retail and give people the freedom to directly invest in a fund with an amount of their choice, which also leads to a better financial reward system. This offering is being made via general solicitation and general advertising, which is permitted by Rule 506(c) as contemplated by Title II of the JOBS Act. This rule came into effect Sep 23, 2013 and we were the first ones to go live with a website and videos about our fund. NIN Ventures also became the first venture fund to be seen on a billboard, which was followed by in taxi ads and other social media facilitated marketing. Learn more about us on Facebook, Twitter, LinkedIn, NIN Ventures TV, etc. 

NIN.VC invests in series A & B rounds of 3D printing, the 4th industrial revolution, ad tech, financial services, education software, and other disruptive technology companies. During the postwar period, recessions and recoveries, were mostly matters of business cycles. When demand recovered, GDP growth resumed, and employers hired again. But for the past two decades, this pattern has been broken. Innovation and investing in new technologies and startups is the solution to job creation – but are we creating jobs at the cost of the consumer and in return damaging our economy?

Currently, the US Asset Management market is $51 trillion, and the global alternative asset market is approximately $8 trillion and expected to be $14 trillion by 2020, according to PwC. Crowdfunding is estimated to have a global market of $96 billion by 2025. While there a huge potential for growth in this space, currently majority of crowdfunding investors are pouring their money investing in companies exposing themselves and the American Economy to a high degree of risk, with a 90% start up failure rate. Recently, the SEC approved Title III JOBS Act, Equity Crowdfunding for non-accredited investors, which allows any U.S. citizen, regardless of income, to make direct investments via a Crowdfunding portal. However, investment in a fund like ours is still limited to accredited investors. Given funds are a less riskier asset class compared to Crowdfunding in companies, perhaps it’s time to revisit their investor eligibility, alter the definition of an accredited investor, and make Crowdfunding available for everyone.

With NIN.VC, we would like to truly democratize venture capital. E.g. Yale is currently the best performing endowment fund in the United States. Since 2008 to 2016, Yale has increased its asset allocation in Private Equity / Venture Capital from 20.2% to 30.9%, out of which 16.2% is venture capital compared to 13.7% in 2014 and just 10% in 2013. In general, most people have a three dimensional portfolio (i.e. stocks, bonds, and money market), but if you look at Harvard and Yale’s portfolio, they a take a long-term approach and invest in alternatives like venture capital.

NIN Ventures Technology (QP) Fund is an opportunity for "accredited" individuals / firms to invest in venture capital for a minimum amount of $100,000 using multiple investment options like self-directed IRAs, defined benefit plan, digital currencies (E.g. Bitcoin, Litecoin, Dogecoin), or a regular checking / savings account. An accredited investor is an individual with an income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income OR have a net worth exceeding $1 million, either individually or jointly with his or her spouse, excluding the primary residence, qualifies as an accredited investor. For an Entity, any trust, with total assets in excess of $5 million qualifies.

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About Ms. Nin Desai: 

Ms. Desai heads NIN.VC, a Crowdfunded Technology Venture Capital firm. Her experience spans all facets of mergers and acquisitions, and corporate finance including public offerings and private placements from private equity to investment banking and investment management. Her corporate finance transactions include RACK, LOOP, LQDT, DBTK, AMIS, SLRY, VOCS, OWW and others. Her M&A deal sheet includes the sale of Financial Profiles to EISI, Buyseasons to Liberty Media, sale of Sircon to Vertafore, and others. She is a Microsoft Certified Systems Engineer (MCSE) and has a technical diploma in E-commerce by IBM, holds Series 7 and 63 licenses from NASD. She holds an B.B.A and M.B.A in Finance / International Business from Loyola University of Chicago, and most recently attended leadership program in Private Equity and Venture Capital at Harvard Business School. 

Ms. Desai has been awarded 2015 CEO Of The Year – Illinois, for innovation and contribution to the Venture Capital & Private Equity industry by Acquisition International magazine and Private Equity Fund Manager to Watch for 2017 by Corporate America. NIN.VC has been the recipient of several awards including Wealth and Finance International Magazine's "Best Technology Venture Capital Fund - Illinois" for the Alternative Investment Awards, the "Best Crowdfunded Technology Venture Capital Fund - US" for the Fund Awards, and “Leaders in Private Equity – Illinois” by Corporate Vision magazine to name a few. 

NIN.VC has been featured in VentureBeat, Chicago Tribune, Chicago Sun Times, Forbes, Inc, WGN's After Hours with Rick Kogan, NBC Weekend Web with Charlie Wojciechowski, Bloomberg's Taking Stock, Crowdfund Insider, and CIO Review to name a few.