PE Tech Report


Like this article?

Sign up to our free newsletter

Fuel Venture Capital adopts new funding structure for latest fund

Fuel Venture Capital, an early-stage investor in technology and digital companies, will raise money for its next fund using a new funding structure ​its says is positioned​​ to “transform the private markets landscape”. 

Institutional investors will be able to ​participate​ in the upcoming Fuel Venture Capital Flagship Fund II, which is aiming to raise $300 million, via The Fuel VC Note, a listed, centrally cleared transferable Note that can be sold and traded throughout its duration.  
Investing in the fund in this way enables the potential liquidity and transferability of a stake in an underlying asset class that has traditionally been illiquid, whilst any distributions from underlying liquidity events (eg IPOs) can still be passed through to investors in a tax efficient manner. This means investors can potentially exit their investments more easily and quickly, compared to traditional venture capital investments. 
Investors can purchase, value and custody the Fuel Note through their existing brokerage accounts. The structure also allows exclusive access to the fund with smaller investment minimums, making previously exclusive opportunities more accessible to a wider range of professional investors.  
The Fuel VC Note will invest directly into the Fuel Venture Capital Flagship Fund II with a discounted fee structure. Investors will gain a unique 1:1 exposure to the underlying fund, gaining exposure ​diversified across the ​global ​creative economy​.  
The fund will target disruptive technology companies that transform how businesses and consumers transact, consume, work and enjoy their life journey. The fund is already primed to invest in seven warehouse companies, all previously backed by Fuel Venture Capital funds. These are: Betr, RecargaPay, Soundtrack Your Brand, Curve, CookUnity, AEXLAB and Novopayment. 
Private equity platform Moonfare already uses various forms of feeder vehicles to give investors access to private equity and venture funds in a similar way, but Fuel Venture capital says the Fuel Note offers some unique features and advantages, including having a inga CUSIP/ISIN and be centrally cleared, via systems including Euroclear, Clearstream and DTCC. 

In addition, the pricing of the Fuel Note will be available via Bloomberg, SIX Financial, and the relevant Stock Exchange where it will be listed, adding an extra layer of transparency and accessibility to the investment process.

Like this article? Sign up to our free newsletter