Florida entrepreneur tries a unique way to generate venture capital
Edgar Arvelo’s crowdfunding project will finance his new hedge fund.
To attract investors, Arvelo has launched an Indiegogo campaign, which can be viewed at the Indiegogo site.
“I’m going to need support from the Indiegogo community contribute to make this venture successful,” he said. “This way I can avoid cold calls to potential investors who are not truly interested in this project.”
Arvelo has suggested that other individuals who use crowdfunding to provide start-up funding for their businesses might be better served by investing in his hedge fund. He plans to focus on these projects as potential investors.
“My hedge fund may be a source of capital to take them to that next level,” he said.
Most hedge funds charge fees to their investors. The sales load is usually 10 percent, the annual management fee is 1 percent and the incentive fee (based on new profits) is generally 20 percent. As a perk for Indiegogo investors, Arvelo will waive 10 percent sales load and the 1 percent annual management fee.
“This way I don't make money unless I make our investors profit,” he explained.
In order to get the hedge fund started, Arvelo is estimating that he needs $130,000. This money will go toward the company website (www.newwealthfundsonline.com), an office, furniture, salaries for five salespeople, management software and utilities. The budget does not include a salary for Arvelo.
Currently a life and health insurance agent in Florida, Arvelo was formerly a federally-licensed securities dealer. He feels strongly that his business background will enable him to run a highly profitable hedge fund. Financing from Indiegogo will ensure that those who are investing have a sincere interest in establishing this fund.
“Usually people who need to finance great ideas seek money from friends, home equity loans and venture capitalists,” said Arvelo. “Those sources are risky. What I plan to do is seek Indiegogo and other crowdfunding projects that have potential and provide venture capital for those companies. I then plan to list that company on the stock market as a hugely profitable exit strategy for the hedge fund investors.”
For additional information, visit www.indiegogo.com/projects/hedge-fund-start-up or contact Arvelo at firstname.lastname@example.org.
YHWH Trade, LLC
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