VentureCrowd

Despite rising rate hikes in a bid to tame inflation, fixed income securities? role in your portfolio hasn?t changed. In fact, fixed-income products can be a vital defense during times of economic uncertainty, particularly for long-term investors looking to diversify and offset riskier assets.

Fixed income investment can offer crucial balance and additional income to your portfolio, something that is even more important in the face of today?s high inflation and rising cost of living.

In FY23, where we?re tipping out of all the asset classes, fixed-income investments with strong running yields will reign supreme. Property and equities are not far behind. Certainly, after years when yields remained near zero, fixed income securities proved to be an attractive and attainable source of steady, reliable income.

What is fixed-income investing?

Fixed income is an investment approach focused on capital and income preservation. Fixed income securities broadly refer to investments that have three basic elements underpinning them: a fixed rate of return, for a fixed period of time, on a fixed schedule.

Fixed income is a broad asset class that includes government bonds, municipal bonds, corporate bonds and asset-backed securities such as mortgage-backed bonds. They're called 'fixed income' because these assets provide a return in the form of fixed periodic payments.

Fixed income investing can potentially provide investors with benefits such as assets with a focus on capital preservation, income generation and diversification. Investors should look out for the following factors if they want to invest in fixed income investments:

? The rate of return

? The term of the investment

? The security

? The payment schedule (choosing one that suits you best)

At VentureCrowd, we prefer higher-yielding fixed-income products and generally invest in those that offer between 9% and 15% p.a. These are usually paid monthly for a 12 to 18 month period. That means during the investment term, you will receive a monthly income, and then at the end of the term, the investment amount is returned to you.

Potential benefits of fixed income

There are many reasons why you should consider fixed-income products when rates are rising and inflation is high:

1. To mitigates losses during market downturns

The most important role of fixed income in a portfolio is to mitigate losses in market downturns. This is because fixed-income assets are generally less sensitive to macroeconomic risks, such as economic downturns and geopolitical events.

Investing in a broad range of fixed income securities with different investment terms and durations helps to avoid interest rate risks.

For investors with portfolios containing a significant portion of listed and private equities, or other asset classes, allocating a portion of their investments to fixed income securities is an effective way to diversify their portfolios during market downturns.

2. Capital preservation

Fixed income can provide capital stability. The principal is returned to the investor when it matures, making this investment an effective capital preservation strategy.

3. Steady income generation

Most of the investment return for fixed-income products is coupon income. Coupon (or interest) payments can help generate a steady source of income.

Investment types to consider

To diversify and mitigate risks, investors may consider high-yield income securities. Obviously, higher return rates come with additional risk. However, when you have 12-month term deposits paying around 3.5% and the Consumer Price Index (CPI) currently over 6%, you are basically losing money unless you?re earning over 6%. So we are expecting higher-yielding fixed income securities to grow in popularity over the next 12 months.

Fixed income securities can also be backed by real estate assets. One of the most commonly understood options is a First Mortgage Fund. This type of investment allows wholesale investors to diversify their portfolios by backing a residential development project with a target return of 12% p.a paid monthly in arrears on an 18-month term and with a loan-to-value ratio (LVR) of around 70%.

At VentureCrowd, First Mortgage Fund loans generally pay between 9% to 12%. When you?re talking about property, it?s a very tangible asset that may be a draw card for investors who like to see their money contributing to the literal building of an asset! Better yet, the property capital stack provides multiple ways to enter the property market AND earn a fixed income.

We also offer multiple fixed-income options including:

?Preference Shares at 12% p.a.5

?Preferred Equity at 15% p.a.6

?First Mortgage at 12% p.a.7

Explore what?s on offer at VentureCrowd

At VentureCrowd, our goal is to offer you access to high-yield and purpose-driven investment opportunities across a range of investment categories.

To offset risk and supplement your income during times of rising rates and inflation, fixed-income investments in property could give you the stability and reliable income you?re looking for. It?s also a good option for investors who want to diversify their portfolio and gain exposure to the many growing sectors in real estate.

VentureCrowd's Property Ventures offer a diversified portfolio of property investments so you can safeguard your nest egg.

Carrara, Qld investors can earn 12% p.a. paid monthly or compounded for 24 months. Invest in one of Australia's strongest growth suburbs with 37.4% capital growth last year.

Offering a strong rental yield at 5.4% p.a., outperforming Sydney, Melbourne & Brisbane,this property fund enables wholesale and pre-approved investors to earn passive income and receive monthly distributions, investing in preference shares in an architecturally designed project in Carrara, QLD.

Glenvale Property Fund with a target of a return of 12% p.a. (net of fees). Glenvale is located in Toowoomba?s western corridor and is a rapidly emerging rural community zone.

The region has seen steady population growth over the last few years and is expected to continue growing by 1,700 new residents each year over the next decade.

As a result, there's over $13 billion of planned infrastructure in this sunshiny gem. This investment allows wholesale investors to diversify their portfolio by backing a residential development project being completed in Glenvale, Toowomba QLD.

If you?re already well versed in fixed-income securities, explore our equity product Cannon Hill, Qld with a target ROI of 40%, min 18 month term. Development Approvals are in place for 45 apartments over four stories, with the project having an estimated completion by March 2024.

Located in a high-growth area with an undersupply of residential properties, the suburb vacancy rate is currently 0.9%, seeing rent increases by $40 average per week (12%) over the past 12 months* (*Source: Broad Property Research and Advisory Research report)

This venture enables wholesale and pre-approved investors to purchase equity in the development of an architecturally designed, multi-residence apartment project in sought-after green-belt suburb, Cannon Hill, Qld.

Whichever level of the property capital stack you?re comfortable with, our aim here at VentureCrowd is to empower you to back what you believe in and access impactful property investments that allow you to diversify your portfolio.

View our VC property deals and book a call with one of our Property Capital Managers today.

Just like with startup investing, real estate investing has different investment layers with different risks and returns?

While real estate is a natural go-to for many new investors wanting to maximise returns and reduce risks, there are many ways to break into property investing.

And because every real estate investment is unique, it?s important to understand how real estate investing can look depending on how you invest, when you enter the market and the deal type you invest in.

In commercial property development such as what we do here at VentureCrowd, deals are broken down into 3 primary layers, each with different investment types, returns and risks attached to them ? and those different investment levels are referred to as the property capital stack.

Once you get your head around the capital stack, it?s a lot easier to evaluate and manage real estate investment risks and projected returns. Not sure where to begin? Fret not, because here?s how it all breaks down.

What is the capital stack?

The property capital stack describes the capital investment layers for financing, developing and operating a commercial real estate investment.

The capital stack defines who has the rights (and in what order) to the income and profits the property generates throughout the hold period and upon sale.

Importantly, it also defines who has rights to the actual asset in case of a default on the loan that?s not secured.

When investing in real estate through an online marketplace, platform or other means, getting clear on the capital structure of any given development and the associated risks and rewards helps you diversify your portfolio in an optimal way.

Essentially, the stack?s structure and your place within it as an investor will determine how and when you will get paid and whether you have the ability to take control of the underlying property.

In a nutshell, your position within the stack shows your exposure level and also the level of your expected return.

How the property capital stack works

The real estate capital stack is structured into three main components:

1. The acquisition stage

At the bottom of the capital stack we have equity.

Common equity holders have the highest risk in the stack as they?re in first and paid last. Common equity holders require the highest return to compensate for such risk and have the potential to enjoy very high rewards.

Unlike debt investors, equity investors target a Return on Equity (RoE) which typically translates into higher returns than the other two investment levels.

However, this level carries more risk. For example, common equity holders aren?t guaranteed to receive periodic payments or even their principal back and their investments are generally illiquid. At VentureCrowd, equity projects tend to target a Return On Equity between 30-40%.

2. The civil works stage

Preference Equity/Mezzanine Debt is the next position in the capital stack. It is a fixed income security that offers passive recurring income for investors.

This level forms the middle of the stack. Mezzanine debt is not secured by the property but by a pledge of the ownership interest.

Because mezzanine debt is repaid after First Mortgage Fund (FMF) debt, it carries a slightly higher risk profile but is considered less risky than a common equity investment because the site value is higher after DA approvals and acquisition.

As such, investors can expect to earn higher returns than they would gain with FMF. At VentureCrowd, we tend to offer between 12 to 15% returns on our preference level investments.

3. The construction stage

In VentureCrowd property deals, First Mortgage Fund is another debt-based or fixed income security that pays regular passive income to investors.

It sits at the top of the real estate capital stack, and is home to the highest priority debt, meaning in the event of a default, FMF investments are backed by a registered mortgage and are paid out first.

If a property performs well and generates cash flows sufficient to pay periodic debt service payments, then debt holders will get their full periodic payment before any other capital contributors.

Because of this, First Mortgage Debt is considered to have lower risk. Traditionally first mortgage investments can range from 6 to 9%.

In our case, because of our focus on high-growth areas like South East Queensland, our first mortgage fund often allows for a 12% target return.

Why does the property capital stack matter?

The property capital stack is important for two main reasons. From a property developer?s perspective, the way the capital stack is structured will influence a deal?s overall profitability. From the investor?s perspective, understanding the capital stack can help them to determine where and when to invest.

hose seeking ?safer? investments at lower yields can choose to invest in low-leverage debt, while those investors chasing higher returns may want to invest in common equity.

What to consider when investing in commercial property deals

Understanding how a property developer distributes cash flow in each layer of the property capital stack will better position you to understand whether the intended return is worth the risk you take on.

In commercial real estate, if you are less tolerant of risk as an investor, then FMF debt is generally the most secure position in the capital stack.

Note that while risk decreases as you move up the capital stack, so does the potential return. There is no ?good? or ?bad? position within the stack, as long as you are aware of the potential return compared to the risk.

You also have the opportunity to invest in projects at each level to diversify your portfolio. Our Cannon Hill project, for instance, provides the opportunity for an equity (high return, first in, last out) stake. Our Carrara project is a level 2 investment and our Glenvale project is now at the FMF stage.

In reviewing crowdfunded real estate investments, an important part of due diligence is to understand the terms of the investment, including where you, as the investor, will sit in the capital stack. It?s also important to factor in the current investment environment.

During a bear market such as we?ve experienced in 2022, where there?s high inflation, investors tend to gravitate towards fixed-income securities to take advantage of subsequent higher interest rates, so that?s something to bear in mind (pun intended).

However, when you consider regional growth, it?s worth looking at projects at each layer of the property capital stack to optimise your overall returns.

About VentureCrowd?s property deals

Here at VentureCrowd, we raise capital for property development projects across the different stages of the property capital stack. Some projects will involve all capital stack investment layers and some will only have one or two. It really depends on the project.

If you?re interested in property investment, the Queensland property market is a great place to start. Driven by affordability, lifestyle and work flexibility, regional property prices have on average climbed 15.2% (versus 9.4% in capital cities) over the past 12 months.

Current property development projects we have on offer include:

? Toowoomba (First Mortgage) - Targeting 12% p.a. paid monthly

? Carrara (Preference Shares) - Targeting 12% p.a. paid monthly

? Cannon Hill (Equity) - Targeting 40% ROI

Whichever level of the property capital stack you?re comfortable with, our aim here at VentureCrowd is to empower you to back what you believe in and access impactful property investments that allow you to diversify your portfolio.

View our VC property deals and book a call with one of our Property Capital Managers today.

Southeast Queensland: Undervalued & Undersupplied Investment Destination

A strong economy and a strong future. That?s what we?re predicting for the southeast Queensland Region (SEQ).

The ?Golden Triangle? made up of the Sunshine Coast, the Gold Coast, Brisbane, Ipswich and Toowoomba marks a golden opportunity for investors with an extra 1.5 million people expected to move to the region by 2041.

Having one of the highest investment into infrastructure rates in Australia, Queensland?s southeast?s economic growth is about to shift into overdrive, and that is going to make the region very attractive for investors in new business and the property sector.

Let?s have a look at what?s accelerating this growth and what investment opportunities will exist in the next few years.

Vital infrastructure

On the 21st of March this year, the $1.8 billion City Deal was signed for southeast Queensland, with funds going toward vital infrastructure projects in the region. This includes a new $450 million Gabba Brisbane Metro Station, a $150 million Innovation Economy Fund and $70 million for digital connectivity projects.

Other key infrastructure projects for 2022-2023 include:

? $285.8 million for the southeast Queensland Liveability Fund

? $105 million for resource recovery infrastructure to develop a region-wide waste management program

? $1.121 billion for the Brisbane to the Gold Coast (Kuraby ? Beenleigh) Faster Rail Upgrade

? $27.2 million for three business cases for upgrades on the Bruce Highway between Anzac Highway (between Anzac Avenue and Caboolture Bribie Island Road)

? Infrastructure projects in the State that are currently under construction are anticipated to support about 20,500 jobs over the life of the projects.

Queensland Premier Annastacia Palaszczuk said the project will prepare southeast Queensland for the 2032 Olympic and Paralympic Games, ensuring the region is well-equipped to host a projected 500,000+ tourist influx as well as support sustainable growth over the coming decades.

Going for gold

The announcement that Brisbane will host the 2032 Olympics is a defining moment for the future of southeast Queensland.

Hosting the Olympics can really elevate a city?s profile on the global stage and attract new foreign investment, entertainment and sporting events, and increase net migration.

We believe that Brisbane?s Olympics win will boost the Queensland economy and open a range of new opportunities for investors into new business as well as into the property development sector.

Brisbane and southeast Queensland have been on the rise for some time and we believe the announcement really cements the opportunity for the region to come into its own over the next 10 years.

For a cost of $5 bn, KPMG is forecasting the 2032 Olympics will inject $8.1 billion into the Qld economy, $17.6 bn into the wider Australian economy and will create 100,000 new jobs.

Other forecasts indicate that there will be:

? $8.6 billion in increased export opportunities,

? over $20 billion in international tourist expenditure,

? nearly $700 billion spent on infrastructure projects in the region, INCLUDING: building new venues and upgrading existing ones, building new athlete villages in Brisbane, the Gold Coast and the Sunshine Coast; and upgrading road and rail networks linking the SEQ locations that will be venues for Olympic sports.

? Whenever you inject that level of funding into any region to accelerate major city-building projects, the attraction of the region as a place to live and work increases materially and it creates a ripple effect throughout the local economy which can be very powerful, and we believe that will be the case for SEQ.

In addition to that, you?ve got the power of positive consumer and community sentiment ? which is very difficult to measure but is an incredibly important element of economic stimulus.

An undersupplied & undervalued property opportunity

On the property side, the SEQ housing market is already undersupplied and is forecasted to remain undersupplied for at least the next few years. With the Olympics only a decade away, we expect there to be an even greater increase in net domestic migration in the region and that will put even more pressure on an already undersupplied housing market.

This can be good news for property investors because it means price growth is likely to continue to be strong for some time. But, it also means that SEQ will need a lot more stock and therefore, investors should expect a whole range of new residential property development projects to come online across the region over the next few years in order to meet rising demand.

At VentureCrowd we?re proud to be part of this growth story, enabling our crowd of investors to back a community-focused property project in Toowoomba and soon will be launching a new project coming soon to Albany Creek with 47 lot townhouse development over 2 freehold land lots, complemented by June 2024.

Venture capital

Finally, onto venture capital; SEQ is becoming one of the most active startup ecosystems in the country and boosted by some of the largest startup investments and exits in Australia?s history.

The SEQ region is also home to some of the nation?s leading accelerators, incubators and university commercialisation divisions who are doing some really great work across healthtech, foodtech, biotech, agtech and a number of other really interesting areas. An example is the LuminaX HealthTech accelerator backed by the VentureCrowd HealthTech Fund.

When you add affordability, lifestyle and the fact that remote working has become commonplace, we expect that more and more founders will choose to base themselves in the sunshine state.

VentureCrowd offers our crowd access to impactful property investments that allow you to diversify your portfolio. Find out more about our VC property deals and book a call with one of our Property Capital Managers today.

With real estate crowdfunding (also known as property crowdfunding), numerous investors contribute small amounts to purchase property or property development projects. A crowdfunding platform, like VentureCrowd, facilitates this, vets investment and development projects and brings investors together.

Traditional property investment requires a considerable amount of capital. Pooling funds from many investors makes property investment far more accessible. Investors can enter the property market from as little as $100 or $1,000 depending on the platform.

VentureCrowd’s financial services licences for property investment
The VentureCrowd corporate group includes two subsidiaries that each hold a separate Australian Financial Services License (AFSL). These are:

VentureCrowd Pty Ltd, holding AFSL No.503381 which includes, among other things, an authorisation to operate a crowd-sourced funding platform under the new equity crowdfunding amendments to the Corporations Act 2001.

Guardian Securities Limited, holding AFSL No.240506 which includes, but is not limited to, an authorisation to operate retail managed investment schemes registered with ASIC and to act as a Responsible Entity.

Collectively these valuable AFSLs enable VentureCrowd to provide a comprehensive range of financial services to investors.

How real estate crowdfunding works

With real estate crowdfunding you look for investments online, sign paperwork to invest in properties and development projects, transfer funds, and monitor how investments are going. If you choose a reputable platform like VentureCrowd, you’ll have access to vetted investments rather than having to do time-consuming due diligence on investment options.

Property investments usually involve three parties: the sponsor, the platform, and the investor. The sponsor is the person or company who oversees the investment, buys the property, manages the property and/or development, and arranges for the eventual sale. 

The crowdfunding platform is where sponsors and investors come together to raise capital. The platform evaluates projects and sponsors, ensures investors and deals meet requirements, and checks for compliance and regulatory issues. 

The investor is the party who contributes funds and receives income and/or a profit when the property sells at a profit.

How we do real estate crowdfunding at VentureCrowd

At VentureCrowd, we offer a unique approach to real estate crowdfunding whereby our property team comprises developers and end-to-end property managers to oversee the development of a project. This enables us to manage the quality and feasibility of a project, from the selection of land development all the way through to the construction and eventual sale of the property. 

On VentureCrowd, you invest in a fund that's managed by VentureCrowd under one of our two Australian Financial Services Licenses, or you invest in a proptech company that we are capital raising for.

We manage the investment on your behalf, so you don't need to deal with an underlying company. You simply monitor and manage your investment through your VentureCrowd investor dashboard, and we report back regularly to let you know how the project is progressing and pay returns into your nominated bank account.

VentureCrowd funds differ from many other funds because we enable you to invest in specific projects, rather than a range of projects selected by a fund manager.

Property development project selection at VentureCrowd

When you invest through VentureCrowd’s platform, you save yourself from having to do exhaustive research and vetting. Our property experts conduct in-depth research and hand-select all property deals. 

There are basically six fundamental property market drivers we look at when deciding whether to invest in a particular suburb and we commission independent reports to substantiate those:

• Economics and employment
• Population growth and demographics
• Infrastructure investment and government spending
• Supply and demand
• Location and lifestyle factors
• Affordability and the availability of money

What are the different levels or stages of the property capital stack?

Property investing has different investment layers with different risks and returns.

At VentureCrowd, we refer to 3 commercial property development investment layers. These comprise the property capital stack where each layer has a different investment term, return and risk attached to it.

When investing in real estate through an online marketplace, platform or other means, understanding any given development’s capital structure and associated risks is key to diversifying your portfolio optimally.

Essentially, your position in the stack determines when you will receive payments and whether you have any controlling interest over a property.

Learn more about the Property Capital Stack below.

What are the different levels or stages of the property capital stack?

1. The acquisition stage

This stage usually involves an equity raise, ordinary shares. Unlike debt investors, equity investors target a Return on Equity (RoE) which typically translates into higher returns than the other two investment levels. This level carries more risk, however.

2. The civil works stage

During the civil works stage, development funds usually offer mezzanine or preferred equity to investors in a series of tranches. These are fixed income securities that offer passive recurring income to investors. Mezzanine debt is not secured by the property but by a pledge of the ownership interest. It carries a slightly higher risk profile, but it is generally considered less risky than a common equity investment because the site value is higher after DA approvals and acquisition.

3. The construction stage

In VentureCrowd, First Mortgage Fund is another debt-based or fixed income security that pays regular passive income to investors. It sits at the top of the real estate capital stack and is home to high-priority debt—debt that would be paid out first in case of default. Because of this, First Mortgage Debt is considered to have a lower risk profile than other types of debt.

What are the benefits of real estate crowdfunding?

Enter the property market with less outlay

With real estate crowdfunding, you don’t need to be a professional investor to invest. This enables a wider group of people who want to invest in property but may not have the funds to do so directly or who may want to diversify their property investments with smaller amounts of money. At VentureCrowd we are passionate about democratising investment so we can collectively make a bigger impact and enable more people to invest.

Diversify your investment portfolio 

Since you don’t need to invest large amounts of money in a single investment project, you can diversify your investments over a few projects to spread your risk and enter the real estate market without having to purchase a property outright. Investors also aren’t limited to local or regional investments. Via real estate crowdfunding platforms, you can invest in projects practically anywhere.

Earn passive income 

With real estate crowdfunding you can earn passive income from your investments. With equity investments, you can earn rental yields and then a share of the profits should the development sell at a profit. With fixed income investments, you earn regular interest over the investment term and then your principle is returned to you upon completion of the project or upon sale. That said, you should always consider the risks of the property investment you want to back so you are clear on what could happen to your funds should something go wrong.

The platform manages the fund

With real estate crowdfunding the platform manages the fund so you don’t have to. While there is typically a small fee for this, it enables you to simplify your investments while still receiving regular returns.

Your investing experience is digitised 

Crowdfunding platforms are generally accessible and easy to navigate. You can access your account 24/7 and some platforms even offer mobile apps. You can contact the team when you need extra support and most platforms provide regular project updates.

You can earn higher-yield returns

On platforms like VentureCrowd, you can earn higher-yield returns than in term deposits. While higher returns are never guaranteed, at VentureCrowd we generally target returns between 9 and 12% p.a. for fixed income investments, whereas a term deposit will generally earn you around 1.5 to 4% p.a.

You can invest with flexibility 

When you can diversify your investments you can choose to invest across both equity and debt investments to maximise returns and minimise risk. Equity investments typically offer a capital upside, are first in and last out of a project so the investment terms are longer, have fewer fees and hold more risk. Debt investments offer a fixed return based on your investment amount, have shorter terms and are less risky because they are property-backed securities. They may, however, have more fees.

What are the drawbacks of real estate crowdfunding?

Real estate crowdfunding is an alternative investment option

Real estate crowdfunding is considered an alternative investment option compared to more mainstream options like investing in the stock exchange or buying a house outright. As such, many people don’t know about real estate crowdfunding or they are wary of how it works. At VentureCrowd we aim to provide a transparent investment process and good-quality information on crowdfunding to help investors learn about this alternative investment type.

You pay platforms fees 

Most crowdfunding platforms charge fees to manage your investments. These are typically between 1 and 3% of a paid asset’s value. On VentureCrowd we clearly lay out our fees on our deal pages and in information memorandums about each property investment.

The asset you invest in is illiquid

When we say an investment is illiquid, we mean you cannot cash out during the term of the investment. While you can expect regular returns in most cases (depending on the investment terms), your principle may be tied up for longer if a property sale is delayed. For instance, equity investments may be tied up for up to 10 years, while debt investments may only be tied up for two years. At VentureCrowd we aim to keep terms relatively short for our investors and offer different tranches to minimise the term lengths and optimise returns.

There may be tax implications 

It’s important to understand how any investment may affect your taxable income before you invest. The investment Information Memorandum for any project should include information on tax implications but it’s always a good idea to seek independent advice from your accountant.

How to get started with real estate crowdfunding?

First, do your research on the various crowdfunding platforms to ensure you’re comfortable with the terms, the company and the projects you want to invest in. Property (and equity) crowdfunding is a fairly new investment option, so it pays to be vigilant. Any investment carries risks, so consider choosing a platform that complies with legislation, has robust project selection criteria, due diligence processes and an excellent reputation.

Whichever level of the property capital stack you’re comfortable with, our aim here at VentureCrowd is to empower you to back what you believe in and access impactful property investments that allow you to diversify your portfolio.
View our VC property deals and book a call with one of our Property Capital Managers today. 

EnGeneIc aims to raise $20 million in bridging funding, until the IPO market reopens and the company can pursue a Nasdaq listing next year.

The company, founded in 2001 by former CSIRO scientists Jennifer MacDiarmid and Himanshu Brahmbhatt, who still serve as co-CEOs, has created a new way of delivering cancer drugs that is more potent and less toxic than existing treatments.

EnGeneIC Dream Vector, its patented biotechnology is designed to carry antibody-targeted, non-living nanocells directly into tumour cells, which then attack the cancer and trigger an immune response by activating natural killer cells (which detect the nanocells? bacterial origin), without damaging healthy cells.

The technology is a method of delivery, which can be combined with existing therapies such as chemotherapy drugs.

The company, was awarded The AFR?s most innovative in the health industry this year, has clinical and preclinical work underway using its platform to target some of the most aggressive and deadly cancers, including pancreatic, mesothelioma and glioma.

Its most progressed work is in pancreatic cancer, in which a phase 2A trial has been completed in Australia and another is under way at Memorial Sloan Kettering Hospital in New York.

EnGeneIC is also applying its nanocell technology to a COVID-19 vaccine that is safe for immunocompromised people, and early studies suggest it protects people from all variations of the virus. It has phase one trials at hospitals in Melbourne and Sydney.

The $20 million raise will include a $2 million crowdsourced equity funding component via VentureCrowd, which is almost complete.

The funding is being raised on the same terms as its 2021 round, giving the business a $US184 million post-money valuation.

EnGeneIC has already been granted investigational new drug status by the US Food and Drug Administration for its pancreatic cancer trial.

What is EnGeneIC?

EnGeneIC is a biotech company with a proprietary EDV? nanocell platform for the targeted delivery of chemotherapeutics and functional nucleic acids in cancer. Their patented technology makes cancer treatment more potent and far less toxic.

Beyond oncology, EnGeneIC?s EDV? has the potential to be used in vulnerable COVID-19 patients and other future viral pandemics, with the company having begun human trials in Australia for this purpose.

This presents a unique opportunity for wholesale investors wanting to increase their allocation prior to IPO or dive in to gain a new allocation while the opportunity presents itself.

Explore more about EnGeneIc here.

As a high-net-worth individual, volatility can be stress-inducing. However, there’s no reason to panic. 

While investors can’t control a volatile market or unforeseen events occurring somewhere in the world, they can control their wealth preservation strategies to protect their portfolios. 

Market volatility is an inherent part of investing, and high-net-worth individuals must be prepared to navigate periods of economic uncertainty. In this article, we will provide strategies for wealth preservation during volatile markets, including hedging, diversification, and investing in safe haven assets like gold and property.

Understanding Volatile Markets

When used in the context of investing, volatility refers to the amount of uncertainty or risk related to the size of changes in a security’s value. The bigger and more frequent the price swings, the more volatile a market is said to be. Lower volatility means that the value of the asset may change steadily over time while higher volatility means the value can change dramatically over a short period of time.

So what causes market volatility?

Volatile markets are primarily driven by economic or policy factors including interest rate hikes and extreme weather events. Political instability and other global events, like the recent global pandemic or war in Ukraine, can also lead to market volatility. 

Market volatility is a normal part of long-term investing. While it can be unnerving, investors that accept volatility as an integral part of investing can better prepare themselves for when it happens. For example, the market volatility that comes with bear markets can directly impact high-net-worth individuals as they watch the value of their portfolios plummet. However, this often spurs investors to rebalance their portfolio using a handful of strategies that allow them to capitalise on the situation. Let’s explore these strategies, below. 

Hedging Strategies

While it might sound like a term used in gardening, “hedging” is a useful investing practice that every high-net-worth investor should know about. 

In the stock market, hedging is a risk management strategy employed to offset investment losses by taking an opposite position in a related asset. Put another way, investors hedge one investment by making a trade in another. When someone decides to hedge, they are insuring themselves against a negative event’s impact on their finances.

Hedging techniques generally involve the use of financial instruments known as derivatives. Two of the most common derivatives are options and futures. With derivatives, you can develop trading strategies where a loss in one investment is offset by a gain in a derivative. A classic hedging example involves a company that depends on a certain commodity. For example, airlines buying oil futures several months ahead. Without hedging, airline operators would have significant exposure to volatility in oil price changes. One simple strategy is to buy current oil contracts which lock-in fuel purchases at today’s prices. This is advantageous if it is predicted that oil prices will rise in the future. 

There are various hedging strategies, and each one is unique. It’s important to understand that hedging is a strategy used to reduce potential risk. Therefore, a reduction in risk always means a reduction in potential profits. So if the investment you’re hedging against makes money, you have generally also reduced your potential profit. However, if the investment loses money, and your hedge was successful, you will have reduced your loss.

Diversification Strategies

Diversification is another investment strategy that lowers your portfolio’s risk during volatility. Investors can diversify by investing their money across different asset classes such as shares, private equity, real estate and bonds. From there, investors can then diversify across the different options within each asset class. For example if you buy shares, you can then diversify across a range of different sectors such as financials, healthcare, energy and resources.

So how does diversification help during market volatility?

Diversification lowers your portfolio's risk during volatility because different asset classes do well at different times. So if one business or sector fails or performs badly, you won't lose all your money. This can lower overall portfolio risk and improve the chances of achieving long-term investment goals.

For high-net-worth investors, diversification is your best defence against a single investment failing or one asset class performing poorly due to market falls or fund managers failing.

Ways to diversify

• Asset allocation: in addition to allocating your investments among different asset categories, spread out your investments within each asset category. If most of your money is in one or two asset classes, research other asset classes you can invest in. For example, if you're mainly invested in one sector such as financial services, you should research other sectors such as mining, resources or health.
• Managed funds and managed accounts: Managed funds and managed accounts can help you invest across a range of asset classes. Some managed funds and managed accounts offer pre-made diversified portfolios. 
• EFTs and LICs: Exchange-traded Funds (EFTs) and Listed Investment Companies (LICs) provide a low-cost way to invest in an asset class or diversify within an asset class.
• Invest overseas: Investing some of your money overseas will lower the risk of investing in a single market. For example, investments in Asian markets may perform well when the Australian market falls.

Investing in Safe Haven Assets

A safe haven is a type of investment that is expected to retain or increase in value during market volatility. High-net-worth investors can seek out a safe haven to reduce their exposure to losses in the event of a market downturn. 

While a “safe haven” generally lives up to its namesake, it’s crucial investors use their due diligence. This is because assets that are deemed safe havens can vary depending on the specific nature of the down market. Safe havens in one period of market volatility may react differently in another, so there is no consistent safe haven approach other than portfolio diversity.

There are several investment assets that can be considered as safe havens. These include:

• Gold: Gold is the most common safe haven asset. However, other precious metals such as silver, platinum and palladium are also known safe haven assets. Because the price of gold often goes up when the prices of most other financial assets are plummeting, it can provide excellent diversification benefits for your portfolio. 

• Treasury Bonds and EFTs: Government bonds are considered safe havens because they’re backed by the financial strength of the country issuing them.

• Defensive shares such as utilities: Some shares can also be viewed as safe-haven assets, for example, shares in utility companies, consumer staples, healthcare and other essential goods and services. These are known as defensive stocks and generally remain high even during economic downturns and recessions. 

• Property: Real estate such as a home investment and property fund investment can also make great safe haven options. Real estate is typically considered safer than stocks, especially during times of high volatility.

Safe haven investments can be a smart wealth protection strategy for investors. Safe havens can offer stability and even increase in value during volatility. Yet, it’s important to understand that they can also provide less of a return during periods of market strength due to their lower risk. 

Introducing VentureCrowd’s Investment Opportunities

VentureCrowd offers high-net-worth individuals access to diversified investment opportunities that can potentially protect their wealth in times of market volatility, including safe haven assets like property. 

For many investors, property is appealing because it’s a tangible asset that can be controlled, and has the added bonus of diversification, which can minimise portfolio risk. Historically, property has been proven to be less volatile than shares and can hedge against inflation. 

While market volatility is a normal part of investing, the good news is that you don’t need to worry about monitoring markets and managing your investment choices. VentureCrowd’s secure platform allows for 24/7 online management and monitoring of property investments. If your situation changes or you’re feeling wary of current market conditions, our multidisciplinary team can offer our expertise to support you on your investment journey. 

A good defence is your best offence

Protecting your wealth in volatile markets requires a combination of strategies, including hedging, diversification and investing in safe-haven assets like gold and property. VentureCrowd provides a leading digital investment platform for investors seeking safe haven investment opportunities in property, with the expertise of multidisciplinary teams to support you throughout the investment process. Explore strategies for wealth preservation today and invest with confidence during periods of economic volatility. View our VC property deals and Venture deals, and book a call with one of our capital managers today.

What are alternative investments?

An alternative investment is a financial asset that isn’t stocks, bonds, or cash.

Alternative investments (also known as alternative assets) are typically illiquid—meaning you can’t easily sell them or convert them into cash. They used to be limited to high-net-worth and institutional investors, but are now becoming more mainstream and more accessible to the everyday investor. 

Analysts expect the alternative investment industry to grow 59% by 2023, reaching $14 trillion in assets under management. One reason behind this momentum is that investors are looking for more asset classes to diversify their portfolios. Alternatives offer lower correlation to the market than traditional asset classes, hence their appeal.

Types of alternative investments

The list of alternative assets is long but the four main types of investments are: 

#1 Venture Capital and Private Equity

Private equity is equity or ownership not listed on a public exchange. Private equity firms raise funds from both non-institutional and institutional investors and use these funds to purchase equity in a business with the goal of later selling it for profit. Depending on what stage the company is in, private equity can come in the form of:

• Venture capital: Funding for startups and early-stage ventures that have high-growth potential or that have already shown high growth. 
• Growth capital: A type of investment that allows mature companies looking for capital to expand or restructure operations or enter new markets.

Buyouts: Capital used to purchase another company or one of its divisions.

#2 Real estate

Real estate is the world’s biggest asset class and is typically known as an alternative asset when individuals purchase property such as office buildings or residential apartments as investments. 

Investors who don’t want to be landlords might put their money into a real estate investment trust (REIT). A REIT manager will invest their money in different properties as well as manage and collect rent on those properties. Investors will earn annual profits as dividends, or a share in the properties’ profits.

VentureCrowd offers some unique real estate ventures, you won’t find elsewhere. First up, invest in the high-growth, under-supplied suburb of Cannon Hill, QLD and earn a targeted ROI of 40% over an 18-month term. This property fund offers wholesale and pre-approved investors the chance to purchase equity in the development of an architecturally designed, multi-residence apartment project. With development approvals in place for 45 apartments over four stories and an estimated project completion date of March 2024, this is an opportunity you won't want to miss.

Alternatively, invest in one of Australia's strongest growth suburbs, Carrara, QLD, and earn passive income with interest paid monthly in arrears over a 24-month term. With two investment options available, you can choose to earn a targeted 14.5% p.a. or reinvest your interest for higher ROI. Plus, with 80% of the land being rehabilitated as a public conservation space, you can feel good about investing in a socially responsible project.

For something different, consider the Albany Creek Property Fund, which enables investors to purchase preference equity in the development of a residential property development project at Albany Creek, Queensland. With construction already underway and all necessary approvals in place, this is a secure investment opportunity with a target return of 14.5% p.a. paid monthly in arrears.

#3 Private debt

Private debt refers to loans that are typically made by non-bank investors. For example, when a company is looking to grow its business, it may not have the money or assets to expand. Instead, it might take on private debt, or receive a loan from a private debt fund, as an alternative to bank lending. Institutional investors have increasingly turned to private debt as a source of diversified returns.

#4 Hedge funds 

Hedge funds use pooled funds to invest in alternative assets or strategies. Hedge funds are exclusively for high-net-worth individuals and institutional investors, with most hedge funds investing in traditional securities such as stocks, bonds and commodities. Impact investing is a sustainable and competitive strategy for hedge funds. An impact hedge fund is an investment fund that specifically seeks to support beneficial social or environmental outcomes, in addition to generating financial returns.

Alternative investments vs traditional investments

Alternative investments differ from traditional asset classes by aiming to seek returns in non-traditional-style investments. These assets typically have higher minimum investments and fee structures yet lower liquidity compared to traditional-style assets because of the type of assets they hold. Alternative investments can help provide diversification to a portfolio as they usually have a low correlation with standard asset classes (as one investment asset class rises in value another will decrease in value). Like any investment, the rate of return for alternatives is not guaranteed, but there is potential for it to be higher than that of traditional investments.

Venture Capital and Private Equity

Private equity vs venture capital: What’s the difference?

All venture capital is private equity, but not all private equity is venture capital. Confused? Don’t be! Let us break it down: Private equity is funding for businesses yet to be listed or traded. Venture capital is funding for start-ups or early-stage ventures. Note that as private equity means investing in privately owned businesses for equity, venture capital is technically a type of private equity. The main difference is that, while private equity investors prefer stable companies, VC investors usually come in during the startup phase.

Private equity and venture capital buy different types of companies, invest different amounts of money, and claim different amounts of equity in the companies in which they invest. While venture capital investment tends to be riskier, investors get involved because of the potential for very high returns. 

Benefits of investing in venture capital and private equity

Venture capital benefits:

• Can provide funding for startups that have little or no revenue and/or profit
• Investors can be specialists in driving growth and contributing to a business’s success
• Investors can use their knowledge and relationships to create new business opportunities
• Unlike debt, there are no repayments and therefore no immediate extra demand on your cash flow

Private equity benefits:

• Offers flexible investment options and can fund growth in the business and/or shareholder cash realisation
• Usually entails professionalisation ensuring the business grows profitably
• PE investors will bring a focus on achieving a successful exit ensuring a company makes decisions in this context
• Having a well-known PE investor on board improves the financial standing of the business, often giving credibility in areas such as raising bank lending or buying other companies

Risks and potential returns

While the risk profile of private equity and venture capital investment is often higher than other asset classes, the returns have the potential to be notably higher as well. Investing in private equity can provide diversification to an investment portfolio, as private investments’ value may be less correlated with the stock market. Similarly, investing in venture capital can provide diversification to an investment portfolio, as early-stage companies may increase in value faster than the stock market. To manage the risk associated with VC and PE, investors must conduct their due diligence and work with an expert financial advisor to help them make informed decisions by understanding risk vs reward of each investment opportunity.

Real Estate Investment Opportunities

What is real estate investing?

Real estate investing involves the purchase, management and sale or rental of real estate for profit. One of the key ways investors can make money in real estate is to become a landlord of a rental property. However, investors can also use a real estate investment trust (REIT) to provide indirect real estate exposure without the need to own, operate, or finance properties. Similarly, real estate mutual funds invest primarily in REITs and real estate operating companies to help investors gain diversified exposure to real estate with a relatively small amount of capital. 

Benefits of investing in real estate

Investing in real estate as an alternative asset might provide high yields and increase overall income levels in a portfolio. Real estate can also improve overall returns because property is an alternative asset that acts as a hedge against inflation. Whether you invest in commercial or residential real estate, Investment properties can bring much-desired passive income along with the ability to leverage funds, receive tax benefits, protect against inflation and make a difference in your community by providing homes for renters or bringing local businesses to commercial properties.

Risks and potential returns

Real estate can enhance the risk-and-return profile of an investor’s portfolio, offering competitive risk-adjusted returns. The real estate market is one of low volatility, especially compared to equities and bonds. Real estate investment has always been known as a ‘sound’ investment. Still, like with all investments, investors need to adapt to uncertainty and risk through careful asset selection, diversification and the right pricing of long-term risk.

Impact Investing

What is impact investing?

Impact investing is an investment strategy that aims to generate positive and measurable social and environmental impact alongside financial return. You can find impact investment opportunities among a range of asset classes in many industries including agriculture, food, healthcare, education and science. 

 

Impact investments target financial returns that range from below market to risk-adjusted market rate and you can invest across asset classes, including cash equivalents, fixed income, venture capital, and private equity. 

 

The global impact investing market was valued at $2.5 trillion in 2021 and is projected to reach $6 trillion by 2031. This is primarily driven by ethical investors who want to know that their money is “doing good” and contributing to a better world. 

ESG investment opportunities

ESG investing is based on environmental, social, and governance considerations and has become a popular form of investment alternative. A strong ESG deal can enhance investment returns by allocating capital to more sustainable opportunities or practices, for example:

• Renewable energy
• Conservation practices
• Human rights
• Health and Safety
• Workplace diversity

Many ESG investment vehicles have emerged, including green bonds, mutual funds, ETFs, and index funds (among others). 

VentureCrowd backs startups and high-growth ventures that are making a positive impact and has a strong network of partners focused on curating impact investing opportunities and managing funds for early-stage ventures that are making a difference whether locally or on a global scale.

Benefits of impact investing

Impact investing has the obvious benefit of allowing investors to make a positive difference. It gives you the chance to align your financial goals with your values and essentially make your money work for you. Impact investing can also reduce your risk because you can diversify your investment portfolio. Also, by supporting companies and industries in worthwhile causes, you provide increased opportunities for social enterprises to gain funding.

Risks and potential returns

One of the key risks is that impact investments may not generate the intended social or environmental impact. Another risk is that financial returns may be lower than anticipated, depending on the type of impact investment. However, many impact investments have generated strong financial returns, and there is increasing evidence to suggest that companies focusing strongly on social and environmental issues may be better long-term investments.

Introducing VentureCrowd

VentureCrowd is Australia’s leading digital investment platform for alternative assets.

We offer investment opportunities for retail and wholesale investors in curated high-growth private companies and property development funds and give investors access to a diversified portfolio of alternative assets to decrease their overall risk profile and increase their returns.

VentureCrowd’s secure platform allows for 24/7 online investment management and monitoring through a simple dashboard where you can login, view your current investments and see how they’re tracking and discover a range of meaningful opportunities that are good for you, the crowd and the planet. 

Our teams have deep expertise in venture capital, investor relations, funds management, compliance and technology. We have helped fund over 70 ventures through our digital investment platform and provide over 72,000 investors with impactful opportunities to shape the future. 

You can’t afford to not diversify

Diversifying your portfolio with alternative investments can offer high-net-worth individuals access to unique investment opportunities with potentially high returns. Explore alternative investment opportunities today and join the crowd of investors who are investing in impactful opportunities with VentureCrowd. View our VC property deals and Venture deals, and book a call with one of our capital managers today.

Property technology, or “proptech”, refers to any technology used in real estate. This can include everything from online conveyancing software and smart home technology, to construction robots and utilising data to make intelligent decisions during the pre-build phase. 

Forbes defines proptech as “businesses using technology to disrupt and improve the way we buy, rent, sell, design, construct, and manage residential and commercial property.” In other words, proptech is any form of technology that improves the way the real estate industry operates. 

Proptech startups identifying inefficiencies are reshaping Australia’s $7.8 trillion real estate market with tech-driven solutions aimed to streamline old processes and improve productivity and efficiency. Though a relatively young field, proptech startups have raised over $43 billion in funding worldwide since 2012.

What are the trends to watch?

We’re barely into 2023 and already all eyes are on the proptech space. The real estate industry has undergone massive disruption over the past decade, propelled even further by the global pandemic in recent months.

The global proptech market is only growing bigger, tipped to expand from $18.2 billion in 2022 to $86.5 billion in 2032. This means there are still significant opportunities for startups and further tech developments in the coming years. 

Consumer expectations, rapid urbanisation, Mobile-first Millennials and Gen Z are all major factors that are currently driving innovations in the property sector. 

Here are some proptech trends to look out for in 2023:

AI and automation

Artificial Intelligence (AI) has been ongoing within the real estate industry, but there have been major advancements in recent years. Demands from customers for a seamless journey present a big opportunity for proptech startups to meet end-user expectations. 

Enhanced efficiency is by far the most important benefit of AI and automation. For example, AI can help realtors make clear and objective appraisals and property valuations so everyone is on the same page. AI also allows potential buyers to take virtual tours of properties and provide personalised property recommendations saving customers valuable time in an often long, drawn-out process.

Virtual reality

Like AI, the use of virtual reality (VR) and augmented reality (AR) is not a new trend. However, recent shifts in the market are accelerating these proptech trends and serving up some exciting innovations. 

VR is the most-needed proptech trend in a post-COVID world. To make it through the pandemic, businesses have had to become creative; opening up a range of VR-driven solutions including virtual home tours and AR for retail that lets consumers virtually ‘try on’ furniture in their homes. A great example is IKEA, which has developed an AR app that lets consumers use their smartphone to see what a piece of furniture will look like in any room of their home. 

In addition, VR will be increasingly used in the rental business, with a growing number of landlords and short-term rental hosts offering virtual tours with their listings to attract renters. 

Urban planning technology

With rapid urbanisation resulting in close to 70% of the world’s population shifting to cities by 2050, ‘Smart Cities’ will be a focus in the coming years.

Some challenges that proptech startups are looking to address when it comes to Smart City planning include crime and insufficient housing, more connected transportation systems and services to reduce environmental impacts. 

ESG proptech seems to be a big focus, as it helps the real estate industry reach renewable energy targets and develop infrastructure that encourages residents and visitors to adopt climate-friendly practices, such as installing EV chargers.

PropTech vs Fintech

Proptech and fintech are closely aligned, just as real estate and finance is. No property can be built, bought or sold without some sort of finance and banking. For this reason, many refer to fintech as the “big brother” of proptech, since fintech is slightly further along the maturation journey than proptech is. 

With that said, proptech investment will likely outperform fintech investment. In fact, proptech startups have a great shot at success owing to the fact that proptech innovations are becoming more customer-focused; creating solutions for consumers and not just for the issues faced by builders or real estate agents. And let’s face it, consumer confidence is important in this day and age – especially in the real estate industry. 

Furthermore, investors are now pouring more capital into the sector than fintech, a trend that is likely to continue. Just in the first half of 2022, the US proptech market attracted $8 billion in growth equity, debt funding and M&A transactions.

Property crowdfunding done differently

With property crowdfunding, you have the opportunity to support exciting proptech startups in Australia that are shaping the way we build, sell and manage property. 

VentureCrowd is committed to the democratisation of property investment. We offer wholesale property crowdfunding opportunities for investors and developers, and soon-to-be retail opportunities too. View our VC property deals and book a call with one of our Property Capital Managers today.