Chisos Fund II is Now Open
We’re proud to formally announce that our Fund II is open! Now, accredited investors can finally invest directly into individuals.
The economy is changing. our unique approach to entrepreneur capital positions us to take advantage of key market shifts, including:
- Big Players, Strong Opportunities: Established venture capital firms are moving to fund startups at increasingly earlier stages, while keeping their old playbook. This has twin benefits of bringing attention and awareness to the need for early stage capital, while also leaving opportunities for disruptive approaches.
- Move toward Entrepreneurship: Individuals are increasingly moving to become entrepreneurs and startup founders. Rates of new business formation are set to break records in 2021; we’re likely to see more than 1.5M new business applications this year. Many of these businesses are likely to be hiring their first employees this year, too.
- The Creator Economy: Signals indicate that 2022 will be the year of the creator economy. These new entrepreneurs will need capital, but existing funding approaches consistently fail to serve creators. The early players in this space have an opportunity to build a moat.
Chisos has pioneered structured investment terms called a Convertible Income Share Agreement that let us invest in founders and creators as early as Day 1 of their entrepreneurial journey.
We do this by taking an Income Share Agreement, which is well-established in the education space, and combining it with a SAFE agreement. This looks like a debt-equity hybrid, and it’s designed to adjust depending on how the founder chooses to grow their business.
We’re starting with offering the CISA to entrepreneurs, both startup founders and those businesses with longer, slower growth paths. In the future, we’re expanding to serve creators (artists and influencers) as well as athletes looking to monetize their name, image, and likeness.
We’re able to invest pre-traction and before pre-seed with checks of $15-50K, providing founders with flexible access to capital, and investors with an asset that delivers both cash flow yield and equity exposure.
Our Fund I portfolio includes 13 founders. So far, across all Chisos CISA investments:
- 53% of portfolio founders made ISA payments.
- 73% of the portfolio is female or minority founders.
- Fund I investors received their first payments within 1 year of the fund opening.
With the opening of Fund II, we’re growing the number of founders and entrepreneurs we can fund. Beyond the unique combination of yield and equity upside, investors also have the opportunity to engage directly with the portfolio companies as mentors, advisors, beta testers, and even participate in follow-on rounds.
Fund II will be both larger and more diversified, targeting opportunities with scalable and capital efficient businesses in industries such as software/apps, marketplaces, food/beverage, gaming, media and e-commerce.
Investors interested in participating in Fund II can benefit from:
- Equity exposure to the portfolio of founders via the SAFE
- Cash flow yield due to the ISA component
- Backing a portfolio of 100+ diverse and underestimated founders
We have 99 investor slots in this fund. We want an inclusive LP base, so we will be progressively raising the investment minimums for individuals who are accredited investors using the schedule below.
- $10,000 (FILLED)
- $15,000 (FILLED)
Please note that the minimum investment amount for Family offices and institutions is $250k.
Our self-service investor portal is available for you to explore on Securitize. You can learn more about the opportunity, view our detailed documentation, and make a commitment here.