• The Profit Sharing Agreement

  • Profit Sharing Agreement Overview

    • Cohort members that participate in one of VU's Investor Accelerators equally share in the financial upside across the opportunities their cohort selects to invest in during each quarter.

     

    • The Profit Sharing Agreement is given in exchange for the cohort members efforts during the Investment Apprenticeship, where they focused on deal sourcing, doing due diligence, investment evaluation, participating in weekly Partner Meetings and Management Meetings, Investment Committees, and securing allocations in investment opportunities.

     

    • The future value of the Profit Sharing Agreement is tied to the performance of the opportunities the cohort selects to invest in during the quarter, and has the potential to be worth none, some, all, or more than the total cost of participating in the Investor Accelerator. VU targets venture capital investment opportunities that return ~10-100x and real estate investment opportunties that return ~1.5-4x, and there is no guarantee of returns on any investments.

     

    • No additional capital or investment is required per cohort member to receive the Profit Sharing Agreement. The only requirement is a cohort member's active participation in the Investment Apprenticeship.

     

    • You do not need to be an accredited investor to receive the Profit Sharing Agreement.

     

    • Accredited Investors: If a cohort member or VU alumni is an accredited investor, and there is availability in an investment round that VU participates in, and at VU's discretion, the cohort member or VU alumni may co-invest in the investment. If a cohort member who is an accredited investor invests in a opportunity that was selected by their cohort to invest in, then there are no management fees and no carried interest on their investment.

     

    VU offers this benefit to current cohort members because a large number of individuals that participate in VU's Investor Accelerators are angel investors, family offices, and emerging fund managers, and want to co-invest in the opportunities that they are involved in.

  • "Build Equity In Your Education"

     

    With a traditional university, college, masters, or MBA program your tuition is a 100% sunk cost, is time consuming (1-4 years), and does not guarantee you will gain any relevant work experience for getting a career in the venture capital or private equity industry (only praying for internships of unknown quality).

     

    At Venture University individuals in the Investor Accelerator gain high quality VC/PE investment work experience over 3-12 months and "build equity in their education" by receiving a Profit Sharing Agreement which has the potential to be worth none, some, all, or more than the cost of the program.*

  • Financial Upside: Example

    Below is an example provided for explanatory purposes only.

    Actual amounts and results may vary per cohort.

    Investment Fund: A Venture University cohort of 40 individuals invests in 5 companies, investing $1,000,000 across the five companies ($200K per company). Venture University contributes $150K in Apprenticeship Program Capital to the Investor Syndicate and $850K is contributed by VU's LPs (accredited investors) to the Investor Syndicate.

     

    Five Investments: The Investor Syndicate invests in five companies at $200K each ($30K per company from the Apprenticeship Program Capital and $170K per company from VU's LPs.

     

    Future Outcome: At some point in the future, the five portfolio companies either die or have liquidity events via acquisitions or IPOs, and return 0x, 1x, 2x, 6x, and 20x capital invested, for a total return of 5.8x capital invested, turning $1M into $5.8M.

     

    Profit Sharing:

    • Apprenticeship Program Capital: Based on this scenario each of the 40 individuals that participated in Venture University's VC/PE Investment Apprenticeship Program would receive $15K, sharing 80% of the profits from the Apprenticeship Program Capital, returning 1x the cost of the Investment Apprenticeship Program.*

    Below Is A Financial Model Of The Above Profit Sharing Examples

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  • Disclaimer: *Foreign nationals participating in Venture University's program in the United States are not able to receive the profit sharing agreement as part of the Investor Accelerator unless they have a J1 Visa or other type of Visa allowing them to work in the United States. Individuals participating in Venture University's Investor Accelerator program outside of the United States are able to receive the profit sharing agreement. Individuals that participate in and complete the Investor Accelerator receive a profit sharing agreement that is tied to the future performance of the investments made during the program. Individuals that participate in Venture University's programs do not receive an equity stake in Venture University's investment funds or an equity stake in any of Venture University's portfolio companies. If an individual that participates in the Investor Accelerator is an accredited investor, then at Venture University's sole discretion, the individual may be allowed to, but is not required to, nor have any obligation to, invest in Venture University's investment fund or a portfolio company through Venture University's investment fund. There is no guarantee of any return of capital or profits from the investments made, as the risks of investing are high, the future outcomes from the investments are unknown, and could result in a 100% loss of invested capital in the portfolio companies, or result in a small or significant amount of profits for individuals in the Investor Accelerator which will be recognized as income and be taxable.

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