Miami-headquartered Fuel Venture Capital, a $700 million Fund, an early-stage investor in technology and digital companies, has launched the next fund using an innovative, new funding structure.
Closes transferable note
Institutional investors will be able to participate in Fuel Venture Capital Flagship Fund II, which is aimed to raise $300 million, via The Fuel VC Note, a listed, centrally cleared transferable Note that can be sold and traded throughout its duration.
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 note will be issued by S1Series Designated Activity Company (DAC), an Irish section 110 tax status company, which has been sponsored by London-based Sequence Capital and structured by Lynk Capital Markets, a fintech platform for the creation and distribution of alternative investments.
A unique feature of the Fuel Note is that it will have a CUSIP/ISIN and be centrally cleared, via central clearing systems, including Euroclear, Clearstream and DTCC. This eliminates the need for KYC/AML, application forms, wire transfers and tax forms, such as W8-BEN Forms, streamlining the investment process further for investors.
Targets disruptive tech companies
Fuel Ventures Capital’s note is aimed to transform the private market landscape. 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 backed by the VC funds include Betr, RecargaPay, Soundtrack Your Brand, Curve, CookUnity, AEXLAB and Novopayment.
“We believe that the Fuel Note will be a game-changer in the private markets space, offering investors a new level of accessibility, liquidity and transparency,” said Jeff Ransdell, Founding Partner and Managing Director of Fuel Venture Capital. “We are excited to be at the forefront of this innovative funding structure and look forward to its successful launch. We believe it will transform the private markets landscape.”
“This will make it easier and more efficient than ever before to access the private markets,” said Maggie Vo, Managing General Partner and Chief Investment Officer of Fuel Venture Capital. “It’s our goal at Fuel VC to democratize the process of investing in private market transactions and this will make it possible.”
