Invest in startups and venture funds
Invest in farmland
Investments
$10,000
The minimum investment amounts on the OurCrowd platform are as follows: $10,000 for individual company investments, $5,000 per company with a $25,000 balance transfer for a Portfolio Select Account, and $50,000 for investing in OurCrowd funds.
Investments
$15,000
The minimum investment on AcreTrader varies by listing, generally starting at $15,000, with some past deals ranging from $3,000 to $100,000. This range is determined by factors such as the size of the offering and the price per acre.
High Risk
4/5
Investing via OurCrowd carries risks, including the potential loss of capital, market fluctuations, and limited liquidity. Early-stage companies may not succeed, leading to a total or partial loss.
Moderate Risk
3/5
Investing in AcreTrader involves risks like casualty, condemnation, and eminent domain, common to real estate investments.
Minimum Liquidity
1/5
Investments on the OurCrowd platform are generally illiquid, as they involve early-stage, privately-held companies. Liquidity events, such as a sale or IPO, may take several years, and there is no guarantee or secondary market for trading these investments. Investors should be prepared for long-term commitments without immediate liquidity options.
Minimum Liquidity
1/5
AcreTrader investments are considered illiquid, meaning investors should be prepared to hold their investments for the specified duration. While it may be possible to sell shares in a private transaction after this period, there is no established market for them, making resale uncertain.
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Not Predictable Return
N/P
Returns on investments in OurCrowd's early-stage companies and venture funds are highly variable and unpredictable. While there is potential for high returns, given the speculative nature of startup investing, there's also a significant risk of loss.
High Return
9.4-30.3 %
The returns from investing in AcreTrader vary, with historical examples showing realized internal rates of return (IRR) ranging from 9.4% to 30.3% over holding periods between 1.7 and 4.2 years. These variations highlight the potential for both moderate and significant returns, depending on the specific investment and market conditions.
Long-term Investment
5+ years
Investments through OurCrowd typically require a long-term commitment, often spanning several years to over a decade, due to the nature of startup and venture fund investing.
Long-term Investment
3-10 years
AcreTrader investments target hold periods of 3 to 10 years, though this can vary based on market conditions and sale opportunities. Properties may sell earlier or extend beyond the target period, depending on whether favorable buying offers arise or if market conditions dictate a longer hold.
Who can invest
International
OurCrowd investments are open to accredited investors as per local regulations, which vary by country. However, residents of Cuba, Iran, Lebanon, North Korea, Syria, and the Crimea Region of Ukraine are excluded from investing through the platform.
Who can invest
United States
Investing on the AcreTrader platform is limited to accredited investors, as defined by SEC regulations. Non-U.S. citizens can invest if they are legal residents of the United States.
Moderate Volatility
3/5
Assets on OurCrowd, being early-stage and privately-held companies, are highly volatile. Their valuations can fluctuate significantly due to market dynamics, competition, and operational risks.
Moderate Volatility
3/5
Farmland assets on AcreTrader typically exhibit lower volatility compared to stocks and bonds, offering a more stable investment option due to the steady demand for agricultural products and the land's intrinsic value.
Regulation and audits
SEC Regulated
OurCrowd complies with the regulations of each country it operates in, adhering to laws governing accredited investors and investment platforms. It is subject to regulatory oversight, ensuring transparency and investor protection. While not specified, financial audits and compliance checks are likely part of its operations to meet legal and financial standards, maintaining trust and reliability among investors.
Regulation and audits
SEC Regulated
AcreTrader is regulated by the Securities Exchange Act of 1934, SEC rules, FINRA rules, and state laws, reflecting its commitment to transparency and investor protection. As a registered Broker-Dealer, it must adhere to strict financial standards, undergo regular audits, and comply with ethical practices to maintain its standing and ensure the security of its investors' assets.
Insurance
No
OurCrowd does not offer insurance for investments on its platform. Investments in startups and venture funds are inherently risky, with no insurance protection against losses.
Insurance
Yes
AcreTrader does not explicitly mention specific insurance coverage for investments on its platform. Generally, real estate investments, including farmland, are insured against risks like natural disasters and fire to protect investment value.
Payouts
No Recurring Payouts
Investors on OurCrowd typically do not receive dividends from their investments in startups and venture funds, as these are growth-focused and aim for capital appreciation. Profits are usually reinvested to fuel further growth.
Payouts
Dividends
AcreTrader may distribute net cash from annual income to investors after operating expenses, typically once a year in December. These distributions, based on pro rata ownership, are not guaranteed. If distributed, funds go to the investor's AcreTrader wallet or, for SDIRA or IRA accounts, to the custodian.
Withdrawals
Investors on OurCrowd can get their money back during a liquidity event such as an IPO, acquisition, or sale of the company.
Withdrawals
Investors can typically get their money back when the property they've invested in is sold at the end of its expected hold period, which may range from 3 to 10 years.
Extra Fees
Yes
OurCrowd's fee structure includes a 2% annual management fee for the first four years, capped to cover investment management costs. Additionally, there's a 4% upfront administration fee for direct SPV expenses, with the possibility of extra reimbursement set off from returns upon distribution. Carried interest entails a 20% fee on profits up to 5x the invested amount, escalating to 25% for proceeds exceeding 5x.
Extra Fees
Yes
AcreTrader charges investors initial closing costs around 2% of the offering value and an annual 0.75% servicing fee of the land's value for management. The primary revenue comes from a 5% commission on the farm's sale, charged to the seller. There are no “carried interest fees.” Fee structures vary by deal, so reviewing offering documents is recommended for specifics.
Taxes
Annual Statement
OurCrowd offers investors an annual statement, which is essential for tax reporting. This statement details the year's financial activities, aiding in accurate tax filings.
Taxes
Tax Form
AcreTrader aims to provide K-1 tax forms electronically by early March, although delays can occur due to external reporting needs. Tax treatment varies: gains on land sold within a year are taxed at ordinary income rates, while longer holdings are taxed at capital gains rates. Depreciation on buildings or equipment may affect taxes.