Joey Ghost
4.7K posts

Joey Ghost
@thejoeyghost
i go viral @thebirdhouse • $10M+ generated for clients. Teaching you how to write content that converts.



We launched USVC yesterday and it was one of the most fun days of my career Thousands of people ended up subscribing for literally tens of millions of dollars While most of the reception was positive, there was some interrogation on a few important topics: 1 - The USVC fee structure 2 - The Investment Strategy 3 - Support for International Investors Let's talk about them The USVC Fee Structure If you have followed me for any amount of time, you'll know this is a personal topic for me. I've frequently complained about fees in financial services. From VC funds to wealth advisors, I've taken no prisoners in calling these out. The last venture capital fund I ran was the only VC fund I know of that raised more than 50M and didn't charge a penny of management fees. So how much does USVC actually charge and why it is so much? USVC costs 2.5% all-in to investors today There are some misconceptions based on reading our prospectus, including: - A 3% sales load Platforms that offer USVC could charge this if they wanted, but we don't. If you buy on USVC.com as everyone yesterday did, you pay no sales load. - Underlying fund fees Early investments from USVC have been in funds that have their own fees, and these fees are paid by USVC. However, these management fees are already included in the net expense ratio of 2.5%. In time, I'm planning to move a meaningful chunk of the portfolio to be direct investments in startups on the cap table which will have 0 underlying fees or carry. The 2.5% fee is inclusive of everything, including our management fee. - The advertised 3.61% today Right now, even though you pay 2.5%, it costs us 3.61% to service this product. There are two big reasons for this - the underlying fund fees (which we're working to improve with direct investments) and the fact that operationally running these types of funds is very expensive. We've decided to absorb the fees excess of 2.5% for at least the first year. During the time, we're going to make more efficient investments and wait for economies of scale to kick in on operational costs. Now... you may ask: isn't 2.5% still very expensive? The answer is... it depends. Top venture capital firms charge that just on their management fees, and force you to pay that for 10 years. And then they charge 20% of profits on top of that! We charge no carry on our direct investments at all, which makes this 2.5% fee attractive for the asset class. It's ironic to call this a cash grab when we are subsidizing this product out of our pocket to keep the fees in line I encourage everyone to go read the full disclosures and prospectus at usvc.com. Stay tuned for Part 2 later today on Investment Strategy
















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