Invest in venture-backed companies
Invest in trading cards
High Risk
4/5
Investing in Sweater's Cashmere Fund, like any venture capital investment, carries inherent risks. These risks include market volatility, economic conditions, and challenges specific to the companies in which the fund invests.
High Risk
4/5
Investing in trading cards on Alt involves market risk, liquidity risk, uncertainties in authentication and grading, regulatory changes, operational risks including cybersecurity threats, and risks related to the physical storage and insurance of assets.
Minimum Liquidity
1/5
Sweater provides biannual redemption windows for investors to access their investment before the end of the investment term. However, there may be restrictions and limitations on the redemption process.
Moderate Liquidity
2/5
Alt enhances the liquidity of trading cards through the Alt Exchange and Alt Liquid Auctions, enabling quick and efficient buying and selling of authenticated, graded cards stored in the Alt Vault. Bi-weekly auctions provide regular opportunities for transactions, while Alt Lending allows users to access cash without selling their assets.
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Not Predictable Return
N/P
Returns on trading card investments via Alt are influenced by the rarity, condition, and market demand for specific cards, making them highly variable. While some cards may see substantial appreciation, others might not perform as well, reflecting the speculative nature of alternative investments. Investors should adopt a long-term view and be prepared for fluctuations, as significant returns are possible but not guaranteed.
Long-term Investment
1-5 years
Sweater's Cashmere Fund is designed for long-term investments, but they provide biannual redemption windows for investors to redeem a portion or all of their investment.
Long-term Investment
5+ years
The investment time horizon for trading cards on Alt is typically long-term.
Who can invest
United States
Any U.S. resident over the age of 18 with a Social Security Number (SSN) is eligible to invest in Sweater's Cashmere Fund.
Who can invest
International
To invest on Alt, individuals must be at least 18 years old, provide a current address, a Social Security number for U.S. residents, and a valid government-issued photo ID for both U.S. and international users. Alt is inclusive of international investors, accepting payments from 76 additional countries.
Moderate Volatility
3/5
The assets on Sweater's platform, including the investments made by the Cashmere Fund, can be subject to volatility.
Moderate Volatility
3/5
Trading cards on Alt are subject to volatility due to factors like changing market demand, the rarity and condition of the cards, and broader economic trends. This niche market's limited buyer and seller base can lead to significant price fluctuations, making the value of these assets potentially change rapidly and unpredictably.
Regulation and audits
SEC Regulated
Sweater operates under SEC regulations, allowing them to accept investments from non-accredited investors.
Regulation and audits
Not Regulated
Alt adheres to regulatory requirements by verifying the identity of all users, a step that aligns with legal standards for financial technology platforms. Although specific audit details aren't provided, such platforms typically undergo periodic audits to ensure compliance with financial regulations and cybersecurity standards.
Insurance
No
Specific details about Sweater's insurance policies are not available on their website.
Insurance
Yes
Alt offers insurance for trading cards stored in its vault, safeguarding investors' assets against theft, damage, and loss.
Payouts
No Recurring Payouts
According to Sweater's website, the Cashmere Fund does not pay dividends to investors.
Payouts
No Recurring Payouts
Trading cards on Alt do not offer dividends. Instead, the potential financial benefit for investors lies in the appreciation of the asset's value over time, with returns realized through capital gains upon sale.
Withdrawals
Investors in Sweater's Cashmere Fund can redeem their investment during biannual redemption windows. However, there may be restrictions or limitations on the redemption process.
Withdrawals
To get their money back, investors on Alt can sell their trading cards through the Alt Exchange or Alt Liquid Auctions. Once a sale is processed, the funds are credited to the seller's account, from which they can be withdrawn. The time and price at which cards sell may vary based on market demand and card rarity.
Extra Fees
No
Sweater's Cashmere Fund charges a fee of up to 2% for redeeming investments during the semi-annual redemption windows.
Extra Fees
Yes
Alt charges no fees for vaulting services for cards graded by supported companies, while charging $5 for each unsupported graded and ungraded card. Sales transactions on Alt's marketplace incur a tiered selling fee based on the card's final sale price: 10% for sales up to $7,499, 8% for sales between $7,500 and $9,999, and 5% for sales of $10,000 or more.
Taxes
Annual Statement
Venture funds, like Sweater's Cashmere Fund, generally provide tax reporting support to investors.
Taxes
Tax Form
Alt supports tax reporting for investors by issuing 1099-K forms to those who meet specific criteria: being a verified Alt customer, filing taxes in the US, and receiving payments over $600 in a calendar year. This ensures compliance with tax obligations by reporting to the IRS and relevant state tax authorities.