What is a Rolling Fund?

Rolling funds are a new breed of investment, but the concept is straightforward.
Also known as subscription funds, rolling funds were rolled out by AngelList in
February 2020, and have grown exponentially. Structured as limited
partnerships, each quarter (or series) a new fund is offered, but the terms of the
new fund are basically identical to the former fund. This pattern continues for as
long as the fund operates. “Rolling” refers to the fact that these funds remain
open to new investors each quarter. In a rolling fund, managers do not need as
much capital to start investing because they can continue marketing to new
investors.

The Hazic Fund Services Offering

Hazic Fund services offers opportunities for new fund managers to start a rolling
fund. Its structure includes all necessary legal documents. We have also
partnered with leading a law firm; tax CPA’s, marketing agencies, auditors (if
necessary) and technology providers.
Email us to find out more: info@hazic.com

Are rolling Funds only for Venture Investing

No, in addition to Venture capital rolling funds can be used for a variety of
investments including real estate and direct lending.

Rolling Funds vs. Traditional Venture Capital

Let’s start pointing out the differences between a rolling and traditional venture
capital fund by examining the required funding – and that difference is stark.

To start investing $300,000 quarterly for four years, a “traditional fund” must
come up with $5 million. The rolling fund? Just $315,000. This does not include
applicable fees.
With a rolling fund, fund managers can get started with relatively little capital.
There is a tremendous advantage for fund managers in that money is raised by
quarters, rather than an intensive effort fundraising taking a year or more..

Minimum Subscriptions

Each rolling fund manager determines the minimum quarterly subscription
amount. While some rolling funds offer minimums as low as $1,000 per quarter,
these are the exception. A typical rolling fund quarterly subscription minimum is more in the range of $6,250 per quarter, for a total of $25,000 annually. Other funds may charge $25,000 per quarter, or $100,000 annually, as a minimum, and some demand more than that.

Rolling Fund Fees

Hazic fee structure for rolling funds is simple

– Starting at $500 per month we charge a flat rate per month per series*
– Type of investment vehicle and number of investors effect pricing
– Set up fee of $10,000(included legal)

* Minimum commitment of 6 series