Allocate Letter from the Founders

Modernizing private markets investing through inclusivity and transparency

Our reflections, learnings, and what we look forward to in 2024.

As we look forward to another year, we also find ourselves reflecting on the incredible year that was. Alongside the Allocate team, we are grateful for your continued support and encouragement since our inception 2.5 years ago.?

Our mission:

Our mission at Allocate is to modernize the private investment space by providing the engagement layer between supply (fund managers) and demand (investors). While the private markets are significant today, they remain inefficient, and notably, the infrastructure is inadequate to enable family offices, wealth advisor firms, and individuals to invest successfully without friction.?

Currently, we pair curation (through vetted fund originations) with purpose-built software tools to ensure investors have all of the resources needed to build world-class private portfolios.?

Our path to transforming the private markets:

Many know this story already, but we have been deeply passionate about the private sector and built our respective careers around it before Allocate. While we are both based in Silicon Valley and have benefited from the proximity to some of the great investors and founders, we come from first-generation immigrant families who instilled the values of entrepreneurialism, determination, and inclusivity within us.

United by our shared values, we have worked with each other for nearly a decade, and during this time, we have experienced the inefficiencies and inequities that exist in the private markets, notably in venture capital. On the investor side, only a tiny population of individual investors have been able to participate in venture similarly to institutions. We feel strongly that the odds for success in the asset class have been tilted unnaturally against these individual investors who typically do not have the same resources, networks, or balance sheets of large institutions. Transforming private markets will require a robust and elegant experience that bridges individual investors with high-quality fund managers by:

• Enhancing inclusivity by the largest pool of investors by number (individuals) to participate on the same level playing field as larger investors. Through our originations, community, and/or educational programs, we believe all qualified investors should have access to all the tools necessary to succeed. We provide this through our platform designed for RIAs to use for their own clientele as well as global family offices directly.?
• At scale, allowing fund managers to seamlessly discover, onboard, and manage individual investors.?
• Driving more transparency by providing investors with a better way to evaluate, invest, and manage private opportunities. For those already active in the private markets, the amount of friction related to signing up for new opportunities, tracking performance, and gaining access to the most attractive opportunities is non-trivial.

Our progress:?

Today, as part of the originations business, where we source and vet high-quality opportunities, we have had more than $500MM deployed through the platform. We are now close to deploying new products on the Allocate platform that enable investors to evaluate and manage their entire private investment portfolios.?

To help fund our mission, we have raised over $33MM from partners such as M13, Tusk Venture Partners, Fika Ventures, Ulu Ventures, Basis Set Ventures, Urban Innovation Fund, Signal Fire, and Broadhaven, amongst many others.?

What's in store for 2024:

In addition to building out our overall technology platform, fostering community and education is critical to our mission.?

Over the past two years, we've convened thought leaders across venture capital, private wealth, and family offices to provide thought leadership, insight sharing, and network creation. We are doubling down on this through:

• A larger, venture-focused family office summit (our Beyond Summit) to bring together 100-125 family offices and thought leaders from around the world. In 2023, 85 family offices from 12 countries joined us, along with speakers such as Mark Suster of Upfront Ventures and media entrepreneur and hotel heiress Paris Hilton.?
• The launch of the Allocate Institute, a structured educational program focused on providing access to research, information, and content related to venture capital and private market investing. To learn more about Allocate Institute and to apply to be a member of the Allocate community (free of cost), click here.?
• Specialized virtual and in-person events focused on macro and micro trends within the private markets.?

Thank you to every member of the Allocate community for being part of this humbling journey with us. As we usher in 2024, we look forward to continuing this journey and building together.

Ad lucem ("to the light")

Hana and Samir

DISCLOSURE

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