California Venture Capital has developed an investment methodology that can secure all or part of an investment against potential loss or diminution in value. As a result, we’re able to implement capital structures that reduce risks and volatility, protect against downside losses, while generating attractive yields.
- We collateralize the return of invested capital irrespective of the performance of companies on the California Venture Capital Platform.
- A portion of each investment is allocated to acquire hedge assets that mature for up to 100% of the original investment.
- Companies on the California Venture Capital platform utilizes insurance-based securities issued by American insurance companies rated “A-” or better by S&P Global Ratings (previously known as Standard & Poor’s.)
- Investment upside is generated by the performance of portfolio companies and maturity of the hedge assets.
- Our structure assures that the worst-case scenario for any investor is the return of originally invested capital.; and creates a self-liquidating transaction for the issuer.
Investors can substantially mitigate investment and operating risks in virtually any investment while advancing opportunities for attractive long-term risk-adjusted Returns on Investment (ROI) and Annualized Returns (IRR).
California Venture Capital structures and strategies enable companies and potential investors to calibrate and mitigate financial and operating risks, reducing their overall costs of capital, equity dilution, fund subsequent financing rounds, while creating self-liquidating repayment transactions.
California Venture Capital can help non-profit organizations to build sustainable endowments from charitable contributions and fund self-liquidating loans to support operations that preserve their capacity for service and giving while expanding opportunities for financial support.