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With a little creativity, anything is possible — hedge fund investing for previously unqualified investors included.
Sliced Investing, a startup that graduated from Y Combinator’s accelerator in August, helps investors do just that, and it announced today that it has raised $2 million in new funding.
Here’s how Sliced works: Accredited investors get to pick from the company’s curated and thematic funds (equities, real estate, etc.) and invest as little as $20,000. Traditionally, these funds require much larger minimum investments, usually in the six figures, so Sliced is making them accessible to investors with smaller checkbooks. In fact, the company said back in August that about 80 percent of accredited investors can’t afford these hedge fund minimums.
Once enough investors have chosen to put money into a fund, enough to meet a certain threshold, Sliced invests the pooled money into the fund. That’s also where it gets its name, “Sliced” — from pooling smaller tranches (French for “slice”) into hedge funds. It’s a bit like what AngelList is doing with syndicates, but for hedge funds.
Sliced makes its money by taking small cuts from the profits customers make from their Sliced investments.
The startup raised its funding from Khosla Ventures, Data Collective, TriplePoint Venture Growth, and others. Sliced was founded in 2014 by Akhil Lodha and Mike Furlong and is based in San Francisco.
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