AVC Fund Updates > AVC Fund Valuation
Acronym Venture Capital Fund Valuation
Ballast Rock is offering Acronym Venture Capital Fund 1 (“AVC1”) because it offers thesis driven early-stage investing in a diversified portfolio of high growth companies, with a top-flight VC partner delivering their years of experience and market access.
Although there is no guarantee these portfolio companies will attain their growth targets, below is a table of AVC1’s current holdings and the latest implied valuation of each based on the most recent completed capital raises of these portfolio companies:
Although there is no guarantee these portfolio companies will attain their growth targets, below is a table of AVC1’s current holdings and the latest implied valuation of each based on the most recent completed capital raises of these portfolio companies:
AVC1 is still in the deployment stage of the fund. Although venture capital investing is a highly speculative business, to date the existing AVC1 investments are performing well; 4 out of 7 of the portfolio companies have already had higher valuation rounds compared to when Acronym made its initial investment, with two more portfolio companies currently in the process of raising their next round. As an incentive to invest, Ballast Rock investors will invest in the fund at the original basis (i.e. the original 1.0x valuation). Past performance is no guarantee of future results. Please read the complete offering documentation before investing to learn more about the fund, its investment objectives, and the risks of investing.
Investing in Startups
When an early-stage high growth company raises additional capital to continue to grow, they either raise an up-round or a down-round. An up-round means the company’s implied valuation after the new raise is higher than it was at the prior raise round. A down-round means the company’s implied valuation after the new raise is lower than in the prior round. There is no guarantee that such early-stage companies will be able to raise the capital they need to operate successfully.
As an investor, you want your portfolio companies to have up-rounds as it usually means the company has positive growth and momentum and bodes well for future funding as well as a profitable exit. Down-rounds are not always fatal, but they are not looked upon favorably.
Investing in Startups
When an early-stage high growth company raises additional capital to continue to grow, they either raise an up-round or a down-round. An up-round means the company’s implied valuation after the new raise is higher than it was at the prior raise round. A down-round means the company’s implied valuation after the new raise is lower than in the prior round. There is no guarantee that such early-stage companies will be able to raise the capital they need to operate successfully.
As an investor, you want your portfolio companies to have up-rounds as it usually means the company has positive growth and momentum and bodes well for future funding as well as a profitable exit. Down-rounds are not always fatal, but they are not looked upon favorably.
Have more questions?
If you would like to learn more about the team, the Sunbelt strategy, and investing in a Ballast Rock fund, please contact us via email by clicking the button below or IR@ballastrock.com.
