Assess their risks, liquidity, investments, returns, timeframes and other terms
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Invest in startups and venture funds
The minimum investment amount for Streitwise is $3,515, which is based on a Net Asset Value (NAV) of $7.03 per share.
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.
Investing in Streitwise involves risks such as market fluctuations affecting real estate values, limited liquidity with a one-year lockout period and potential for delayed redemptions, discounts on early redemption reducing investment value, concentration in specific real estate markets, reliance on management's decision-making, regulatory changes impacting operations, and sensitivity to interest rate changes.
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.
Streitwise's Redemption Plan offers investors a structured way to sell their shares back to the company, starting after a one-year lockout period. Redemption before five years involves a discount, with full NAV redemption available after five years.
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.
Streitwise has offered an average annualized dividend yield of 7.3% since 2020. Future dividends depend on factors like tenant quality and maintenance costs, and cannot be guaranteed.
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.
Streitwise targets long-term investments, ideally over five years, to avoid early redemption discounts and maximize returns. There's a one-year lockout period, emphasizing the long-term approach.
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.
Streitwise is open to both accredited and non-accredited investors, including international participants, with some investment limits for non-accredited investors to ensure their financial safety. International investors can join with certain conditions and may face delays in processing.
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.
Assets on the Streitwise platform, mainly commercial real estate, typically show lower volatility compared to stocks or cryptocurrencies, due to the slower pace of value changes in real estate. However, factors like economic shifts, interest rate changes, and market conditions can still cause fluctuations, albeit over longer periods.
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.
Streitwise is regulated under Regulation A+ of the JOBS Act, allowing it to sell securities to both accredited and non-accredited investors with SEC oversight. Although not specified, companies under this regulation typically must submit audited financial statements annually, conducted by independent firms, ensuring transparency and compliance.
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.
Streitwise has not specified the types of insurance it holds for its operations or properties. Typically, real estate investments are covered by property, liability, and business interruption insurance.
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.
Streitwise pays dividends quarterly, about 10 days post-quarter end, offering payment via check, direct bank transfer, or through a dividend reinvestment program.
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.
Investors can request to redeem their Streitwise shares after a one-year lockout period, with redemptions processed quarterly. Early redemptions (before five years) face discounts, while shares held for five years or more are redeemed at 100% NAV. Quarterly redemption limits may delay processing.
Investors on OurCrowd can get their money back during a liquidity event such as an IPO, acquisition, or sale of the company.
Streitwise charges a straightforward 2% annual fee on investments, taken from dividend payments, not the principal. There are no additional or hidden fees, making its fee structure transparent and investor-friendly.
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.
Streitwise provides a Form 1099-DIV for tax reporting by January 31 each year, detailing dividends which may be taxed as return of capital, capital gains, or ordinary income.
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.