Wealthsimple Venture Fund I

Invest in top-tier venture capital and growth equity

Venture capital and private equity is no longer just for the super-rich. Find out if adding holdings in high-growth potential, pre-IPO companies to your portfolio with Venture Fund I is the right move for you.

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Invest like a billionaire without a billion dollars

Until now, top-tier venture capital and private equity investments were reserved for the ultra-wealthy and ultra-connected. We've made it so more Canadians can access these opportunities, starting with a minimum investment as low as $5,000.

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Potential for outsized returns

Since 2000, venture capital has produced an average return of 12% net of fees — higher than the average returns of the TSX (7%) and the S&P 500 (8%).*

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Best-in-class fund management

The Wealthsimple Venture Fund I is offered through a partnership with Accolade Partners — one of the top-performing fund-of-fund managers.

Accolade has consistently delivered top quartile returns over the past 20 years.*

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Get in on the ground floor

Invest in funds managed by legendary firms such as Accel, Andreessen Horowitz, and Kleiner Perkins.

Their past investments include Instagram, Stripe, Airbnb, and Instacart.

FAQs

Venture Fund I is different from other investments Wealthsimple offers. While it’s an exciting opportunity, it isn’t suitable for all investors. The recommended minimum investment in the fund is $5,000 at a maximum of 10% of your investable assets. Any investment in the fund is illiquid, meaning it can’t be sold at the current market price and is best for investors with about a 10-year time horizon. The survey will help determine if an investment in Venture Fund I is a fit for your investment goals.

Private assets like venture capital offer the potential for high returns, and can be a good diversifier to traditional equity-concentrated portfolios. These assets are less liquid, but investors have historically been compensated for taking this risk. Many clients have long enough investing horizons to make this risk/return profile attractive.

Like all investments, nothing is guaranteed.

Since 2000, venture capital has produced 12% returns on average, versus 8% for the S&P 500, and 7% for the TSX (all net of fees). However, funds in the top quartile have returned 24% on average (net of fees), and Accolade Partners has consistently performed in the top quartile for the past 20 years.**

With any investment, your capital is at risk. The value of your portfolio with Wealthsimple can go down as well as up and may result in significant investment losses. Past performance of an Accolade fund or other security or strategy is no guarantee of future results. Read our investment risk disclosure for more information.

Private investing is not right for everyone. An investment in Wealthsimple Venture Fund I and any underlying Accolade fund is illiquid, meaning that it cannot be readily sold at a current market price.

Assets that are less liquid generally carry more risk — particularly the risk that you won’t have access to the money if you need it. This type of investment is typically suitable for investors who have a long enough (approximately 10 year) horizon to make this risk/return profile attractive.

There are a couple other things to consider: the amount you’re investing, and how much of your total investment portfolio is being allocated to private assets.

There are some fixed costs associated with private investments, which can eat into returns at small dollar levels. That’s why our advisors typically recommend an investment of around $5,000 at minimum. We’re also capping our clients’ allocations at 10% of their investable assets to make sure they have enough flexibility to meet any unexpected cash flow needs that come up.

If you’re interested in this investment opportunity, a Wealthsimple portfolio manager will discuss it with you, will update your “know-your client” information on file with Wealthsimple and will determine whether the updated investment portfolio is suitable for you.

Most of the contributions will be invested in venture capital and growth equity managers, and will be allocated primarily to technology and healthcare companies.

On the venture capital side, your money will be invested across the venture lifecycle: seed stage, early stage, and expansion stage. We expect most of the capital will be invested in three managers with long track records of strong performance: Andreessen Horowitz, Accel Partners, and Kleiner Perkins. The underlying Accolade funds will allocate to about 10 venture managers in total.

Growth equity capital will be invested in two types of firms. The first are founder-led, bootstrapped software businesses that are at or near profitability. These firms need capital to grow and reach their full potential, and are typically minority investments. The second are companies with strong business models in fragmented industries.

These firms may grow with add-on acquisitions to increase scale, and operational improvements, with hands-on private equity managers that assume control of the businesses.

Space in the Wealthsimple Venture Fund I is limited and it will operate on a first-come, first-served basis. That said, we’re always working on ways to make investment opportunities like Venture Fund I accessible to all Canadians.