- A growing number of tech execs are starting so-called “rolling funds” which allow accredited investors to invest in the fund on a quarterly subscription basis, with the option to stop their quarterly contributions if they don’t like the way their money is being spent.
- Ex-Facebook employee Dave Morin was the first to generate buzz around the new venture model when news leaked in July he had quietly started Offlne Ventures with a host of tech heavyweights.
- Morin was followed by others like Gumroad CEO Sahil Lavingia and ex-Runkeeper CEO Jason Jacobs.
- Business Insider has put together a list of tech figures who’ve started rolling funds.
- Visit Business Insider’s homepage for more stories.
As we previously reported, subscription-based rolling funds are, all of a sudden, the vogue new way for the tech industry’s rich and famous to get involved in venture capital.
Introduced by AngelList earlier this year, rolling funds allow the people who invest in them to “subscribe” to the fund and make smaller payments on a quarter-by-quarter basis.
That also means they can stop contributing if they’re dissatisfied with how the fund’s partners spend their money. Rolling funds can only take on “accredited investors”— which are people or business entities who are wealthy enough to handle the risk if their investment doesn’t pay off.
“It’s very much crowdfunding for techies with capital,” a fund manager who had explored starting a rolling fund told Business Insider.
After news leaked in July that former Facebook employee Dave Morin had quietly started his own fund, a steady trickle of others followed him, like Gumroad CEO Sahil Lavingia, and former CEO of Runkeeper Jason Jacobs.
Check out who has started rolling funds and why below.
Starting a rolling fund? Got tips about startups or venture capital? Email Max Jungreis at [email protected], DM him on Twitter @MaxJungreis. or contact him on encrypted messaging app Signal at (907) 947-0299.