Investors
Our investors are successful individuals and entities with significant industry expertise and a passion for building successful businesses.
The Cottonwood model provides for frequent and continuous interaction between the fund managers and our investors. What’s unique about Cottonwood Technology Fund can be summarized in three areas:
- Pledge fund structure- Investors pledge capital versus committing to a blind pool. In a traditional blind pool the manager calls the capital and investors are bound to invest. In a pledge structure, investors select the each investment and the commitment on a deal by deal basis.
- Deal-by-deal option – Investors can pick and choose what deals they invest in, and capital is called only for the deals each investor selects. Cottonwood’s managers and investment committee screen and approve deals prior to seeking participation from pledgors.
- Unique relationships and deal flow – Cottonwood has excellent relationships with the research institutions and the entrepreneurial community throughout the region.
FUND ECONOMICS:
- Focus on early and seed stage investments
- Target Investment: $500K - $1M (per deal) with equal amount from syndicate partners
- Management Fee: 2.5% (for first 4 years)
- Closing Costs: Capped at 1% of Fund
- General Partnership Contribution: 1% of each investment
- Carried Interest: 15%
LEADING PLEDGORS:
- Hunt Holdings, LP
- Los Alamos National Bank
- Azoulay Family Trust
- Merrion Oil Company
MINIMUM PLEDGE:
- $500,000
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