We thank you for your interest in participating in the Nucleation fund. We are pleased to now provide some additional information about Nucleation Capital and the areas that we are focused on for our investments. Thank you for your interest in this emerging venture fund which is leveraging a state-of-the-art rolling fund technology platform to enable us to give a broader group of sophisticated (and accredited) investors exclusive access to an entirely new asset class—namely innovations happening in advanced nuclear and deep decarbonization.
Aiming to appeal to a more select group of investors with knowledge and expertise in the technical areas of nuclear energy, clean energy and decarbonization science, we seek to provide these discerning investors with an opportunity to participate in a climate-themed venture capital vehicle that utilizes portfolio-like diversification to manage the overall portfolio risk of these individually high-risk private ventures, doing incredibly heroic work developing these critical technologies. It is the availability of this technology platform that enables us to allow our individual investors to allocate assets into this unique pronuclear cleantech fund in a way that right sizes their level of exposure in Nucleation Capital in proportion to their overall portfolio and risk preferences.
About Rolling Funds
While venture capital is all about market disruption, rarely has the venture capital industry itself been disrupted. AngelList has done just that, with the introduction in February, 2020 of its Rolling Funds product, a technology-empowered platform for bringing new funds to market. This offering enables the founders of new funds to engage in outreach to a much broader range of potential investors (the Limited Partners or “LPs”), while handling the important legal work of qualifying accredited investors and managing smaller investment amounts cost-effectively. This reduces hurdles for launching a fund and, once launched, frees the fund manager (the General Partner or “GP”) to spend most of their time connecting with entrepreneurs, investors, studying markets, building syndications and otherwise doing their business due diligence, rather than being obliged to spend a lot of their time managing legal, accounting and administrative tasks.
Emerging managers like Nucleation Capital can now develop a specialized fund offering and more easily reach out to those groups of individuals likely to appreciate the thesis and be excited by it. This facilitates the matching of the right kinds of investors to certain kinds of deals, rather than each GP being forced to spend the time to educate the same limited number of large, institutional LPs (i.e. those who manage pension funds, foundation and endowments), who may have little ability or interest in evaluating critical new technologies or contrarian markets. It also enables more accredited investors to participate in venture capital, at a lower level of commitment and therefore risk, rather than requiring a large commitment that is locked in place for ten years. We believe this new rolling fund platform enables the capital markets to operate more efficiently and address some of the egregious financing gaps that we have seen, especially in addressing technological solutions to climate change.
If you have just submitted your Subscriber Interest Form, we will be in touch with you shortly with a confirmation of your reservation to participate in the fund. Here are the standard terms. If you have asked for different terms, we will respond to those requests as well. Please be aware that requests for less than the minimums may mean that your subscription is placed at a lower priority.
- First investment quarter, Q1-21
- Minimum quarterly commitment: $25,000
- Minimum subscription period: 4 quarters but a longer period is encouraged for greater diversification
- Management fee: 2% / annum
- GP Carry: 20% carry (after the full return of LP principal, LPs get 80% of the ensuing profits and the GP gets 20%)
- Stage of investments made: Seed and Series A predominantly but not exclusively
- Pro rata allocations, with automatic rollover of any uninvested funds into subsequent quarter.
- Subscribers get priority access to any syndication SPV (Special Purpose Vehicle) offerings, where we enable investors to increase an allocation on specific deals.
Please see our current presentation deck
This link takes you to a compilation of scholarly reports which provide additional foundational support for our investment thesis.
We provide answers to some of the most common questions that we received from investors considering participation in the fund.
This link gives you access to more information about the legal documents that are required for participation in the fund.