The world of venture capital investing is a relatively small one, and relationship-based to boot. Family offices and accredited investors are eager to get involved in high-quality funds, but face hurdles like access to fund managers.
Enter Allocate. The company, founded by Samir Kaji and Hana Yang in February 2021, is developing an approach to venture capital fund investing that provides a way for investors of any size to participate.
On Thursday, the San Francisco-based company announced it raised $5 million in seed funding from a group of backers including Urban Innovation Fund, Tusk Venture Partners, Basis Set Ventures, Liquid2 Ventures, Fika Ventures, Ulu Ventures and Anthemis Group.
The pair met as Kauffman Fellows, both with backgrounds in financial services. By the time they met, Yang was working in the nonprofit world, and said they began talking about the friction between the nonprofit and venture capital worlds. Then Yang joined Kaji at First Republic Bank to work together and continue the conversation.
Kaji, citing a Boston Consulting Group report, estimated there are between 8,000 and 11,000 global family offices and nearly 17 million accredited investors that currently control some $42 trillion in assets.
They saw the issue as it related to supply and …read more
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