For investors who are financially strong and stable, there is a new investment fund in the town. Millionaire and angel investor Balaji S Srinivasan has announced the launch of his new venture – Balaji Fund.
Balaji S Srinivasan took to X and announced that his new investment venture is backed by millionaires like Naval Ravikant, Brian Armstrong and Fred Wilson. He also said that one should only invest if they are financially strong and capable of affording the hefty subscription fee.
Announcing the same on the social media platform, Balaji wrote, “I have a new fund. Naval, Brian Armstrong, Fred Wilson are backers. I’m also putting in my own money. I’ll be seed investing in every promising company. Especially startup societies & network states. The fund is for accredited investors.”
According to the details of the Balaji Fund, the subscription amount has been set at over USD 10,000 quarterly, which comes out to ₹8.33 lakhs every three months. The subscription period for the fund is 10-16 quarters.
Balaji Fund: Risks, fee and other details
The quarterly price of subscribing to the Balaji Fund is ₹8,33,243. Srinivasan launched this fund with the effort of seed investing in startups and new ventures across several industries. However, he advised that only those should invest who have a high income and financial stability.
The investment and return in this fund is long term, and the backer founder himself has described the investment as “high risk”. The fund structure is mentioned as follows –
Fees: 2.5% management fees
Carry: 25% graduated to 30% after 3X returned
Commitment: $10K per quarter minimum, 10 quarters minimum
Through this new fund, subscribers will be able to seed invest in industries such as crypto/web3, deep learning, augmented reality and virtual reality, genomics, quantified self, autonomous robotics, network states, and frontier technologies.
They will start seeing profits once the firms seeking seed investments boom. The start date of the subscription is January 1, 2024 with a management fee of 2.5 percent in the first 10 years.