A new inflation hedge has arrived.

Diversify your portfolio and beat inflation with a new hybrid investment product of US Treasury Bills and Pre-IPO Shares.

Market conditions are uncertain. What should you do?

Inflation, recession, rate hikes, bank runs... these uncertainties have prompted many investors to turn to cash as a “safe” investment option. Is this really the smartest move for you?

The yields of some Treasuries and savings accounts are not outpacing inflation. To seek equity-like returns, investors need to be more creative in diversifying into alternative investments like the super-rich do.

This hybrid investment opportunity combines private investment securities with a structured interest rate hedge, providing an opportunity for positive returns while protecting the principal investment.

Calculate your potential returns

Find out how much you could earn with MarketX Venture’s Structured Inflation Hedge product.

Enter an amount to invest

US Treasury Bills

50%

$5,000

Investment Period

2 years

Treasury Yield (%)

5%

Expected Final Value ($)

$5,500

Expected Return ($)

$500

Annualized Return (%)

5%

Pre-IPO Shares

50%

$5,000

Investment Period

2 years

Multiple on Investment

2x

Expected Final Value ($)

$10,000

Expected Return ($)

$5,000

Annualized Return (%)

41%

Expected Investment Value

$15,500

Est. value after 2 years

Investment Period

2 years

Multiple on Investment

1.55x

Expected Final Value ($)

$15,500

Expected Return ($)

$5,500

Annualized Return (%)

24.50%

Any performance information shown above is merely an illustrative example of a projection. These are not actual results. These projections are based upon various assumptions. No representation is being made that a performance record similar to the projected returns will or is likely to be achieved. Please see the Terms of Use, Private Placement Memorandum, Operating Agreement, and all other offering materials to understand the risk of investment. Any specific outcome may or may not be available for any potential investment. Further, you select the specific allocation you are interested in; thus the performance of those specific investment selected will differ.

This communication shall not be used or considered as an offer to sell or a solicitation of any offer to buy securities of any product. Offers can only be made where lawful under, and in compliance with, applicable law. MarketX does not provide investment advisory, tax, legal or financial services, and recommends that you consult a licensed tax, legal, accounting or investment professional to perform an independent analysis before making any investment decision.

We can help you diversify.

Compare this product with other common investments.

INVESTMENT PRODUCT

Checking / Saving Account

US Treasury Bills, Notes

Equities (S&P 500)

PE / VC Generalist Funds

ANNUALIZED RETURN

0 - 0.5%

5%

~8%

10 - 12%

BENEFITS

Liquid
-
-

Liquid
-
-

-
Inflation Hedge
Diversified

-
Inflation Hedge
Diversified

MarketX Ventures Structured Product

24.50%

Enhanced
Inflation Hedge
Diversified

Why Private Markets?

Private markets have historically outperformed public markets throughout business cycles.

Private markets appeal to both institutional and non-institutional investors due to their potential for higher returns, lower correlation with public equity markets, and access to otherwise inaccessible markets and strategies.

During the 2008 financial crisis, deals from top-quartile vintages raised around the globe generated a 61% internal rate of return, compared to the S&P 500’s -38% annual return.

Why should I invest with MarketX?

MarketX Ventures combines the best elements of venture capital, privileged geographic access, and innovative liquidity opportunities to capture high-impact companies and make them accessible to investors.

Our Inflation Hedge Structured Product is a single investment providing one structured, risk-adjusted return, combining private investment securities with a structured interest rate hedge.

Holding the investment for two years, the worst-case scenario would be the company not IPO-ing or getting acquired, resulting in a maximum loss of 45%.

On the upside, pre-IPO companies can return as much as 200% when triggering an exit event, potentially growing the initial investment by 105%.

Frequently Asked Questions

An accredited investor is a person, according to the Securities and Exchange Commission’s (SEC) definition, who has the knowledge, financial capacity and other measures of financial sophistication, to make investments not registered with the SEC. In order to qualify as an accredited investor, you must have a net worth of over $1,000,000 excluding the value of your primary residence (individually or with spouse or partner) or have an income of $200,000 if you are single or $300,000 with spouse or partner in each of the prior two years, and reasonably expects the same for the current year.

The other professional criteria defined by SEC include:

Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82)
Directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company)
Any “family client” of a “family office” that qualifies as an accredited investor
For investments in a private fund, “knowledgeable employees” of the fund

Click here for the current SEC definition of Accredited Investor.

Depending upon the structure of the entity or its assets, the following entities may qualify as an accredited investor by their investments or assets:

Entities owning investments in excess of $5 million
The following entities with assets in excess of $5 million: corporations, partnerships, LLCs, trusts, 501(c)(3) organizations, employee benefit plans, “family office” and any “family client” of that office
Entities where all equity owners are accredited investors
Investment advisers (SEC- or state-registered or exempt reporting advisers) and SEC-registered broker-dealers
A bank, savings and loan association, insurance company, registered investment company, business development company, or small business investment company or rural business investment company

Most of our offerings are not registered with the SEC, so you must be an Accredited Investor in order to invest with MarketX Ventures.

This varies for each investment, and is usually displayed on the Opportunity pages and the Subscription Agreement.

We charge an annual management fee and a carry fee for each investment.

Management fees are charged by the Fund Manager to the Fund. The Management Fee is a percentage of each investor’s Committed Capital that may be charged upfront at closing, or annually, or a combination thereof. For the annual Management Fee, future Capital Calls may be made from Investors to pay this fee.

The Carry fee percentage is a share of the profits that the Fund Manager is entitled to. Whenever a distribution is made to investors, the manager charges the percentage Carry Fee of the profits (difference between the initial investment and liquidation value). The Carry Fees is only charged on the future investment profit or gain upon a liquidation event, and not on the initial investment principle.

There could be another fee structure in place of the management fees plus carry for a specific investment and if so, such fees will be displayed for the investment.

You do not directly own shares in the company, rather you own a membership interest in an LLC that owns the shares in the company that you invest in.

Unless otherwise stated, the investment is structured as an LLC, with MarketX Securities LLC as the manager. You are investing in an LLC formed and managed by MarketX Securities LLC. The LLC owns the shares of the Company. Each investor subscribes to the LLC in the form of membership interests, relative to how much they contributed, and then the total funds contributed to the LLC will be used to buy the specified investment.

Pre-Initial Public Offerings (Pre-IPOs) allow private companies to raise money by selling shares. However, such investments traditionally required significant initial investments, preventing retail investors from investing. Here at MarketX Ventures we are democratizing such private investment and breaking down such barriers by offering Pre-IPOs via a LLC structure at significantly reduced minimums.

There is a private market for shares in private companies, and we determine offering prices based on the private market for these shares, based on publicly available information such as the last round of financing, investor demand, secondary transaction price history, and other other public information.

The paperwork for the fund is similar to that of any other form of fund investment. In general, an investor will receive three documents: the Private Placement Memorandum (PPM), the Operating Agreement and the Subscription Agreement.

The Private Placement Memorandum (PPM), a confidential offering document sometimes known as an investment prospectus, is a securities disclosure document used in a private offering of securities by a private placement issuer or an investment fund (collectively, the “Issuer”). The PPM contains information about the Issuer, its securities, its management team, investment parameters, disclosures and the potential investment rights, risks and rewards, to allow the prospective investor to make an informed investment decision.

The Operating Agreement describes how the LLC is structured, managed, and operated, including establishing each member owner's percentage of ownership in the LLC, his or her share of profits (or losses), his or her rights and responsibilities, etc. Each investor in an LLC is a party to the Operating Agreement.

The Subscription Agreement describes the terms for an investor to invest in the fund (the LLC, and is the notification by the investor to the Fund’s Manager of the investors interest in participating in the investment. Once a Subscription Agreement is submitted by an investor, the Manager will consider it and other applicable information, and if accepted, the Manager will sign the Subscription Agreement at Closing as acceptance of the Subscription. Investors will also need to complete a W-9 or a W-8 BEN for foreign investors and the Suitability form.

Our LLC is a “pass-through” entity for tax purposes. The Manager intends to elect that the LLC be treated as a partnership and as such, any gains and losses would pass through to the investors. Such gains and losses are reported to investors annually on the form K1. Note: We are not tax experts, and the aforementioned information serves for informational purposes only and not as personal tax advice. Please consult your tax advisor or accountant for information regarding your specific circumstances.

We will communicate with you generally via emails, on any MarketX Ventures news, required investor actions or public news that has to do with your investments, such as funding information, news about secondary transactions, company or market news, etc. You can view your investments by going to your Portfolio upon logging into MarketX Ventures (www.marketxventures.com), and access your documents and K1s on your Investment Details page for each of your investments.

1. Verify your Accredited Investor status:

MarketX Ventures provides access to vetted, early-to-growth stage and pre-IPO companies. To invest in MarketX Ventures private investment opportunities through a MarketX-managed or a third-party managed fund, you will need to be an Accredited Investor, per the U.S. SEC definition.

Simply sign up, activate your MarketX Ventures and verify your accredited investor status as part of your activation process as required by SEC rules.

2. Browse companies:

Review the list of MarketX-vetted companies and investment opportunities as well as their details to understand the investment highlights, previous notable investors, previous funding history, the company’s product, core team, business model etc. and the investment terms.

3. Submit investment request and complete closing:

You can submit a commitment to invest and one of our MarketX Ventures Specialists will contact you to facilitate the investment closing. The closing process will start with signing the relevant investment related documents, transferring the investment funds plus any upfront fees to the specified bank account (by specified payment due date), and providing information for and signing tax-related documents. You can track your closing process from your Investment-In-Progress dashboard.

4. Track your portfolio and engage with MarketX Ventures:

You can track your closed investments from your Portfolio dashboard. Engage with MarketX Ventures through your MarketX Ventures Specialist, our business team, technical support team, various online webinars on upcoming investments, future updates to closed investments, uploaded tax related documents, as well as occasional off-line events (by invitations only).

MarketX Ventures cannot guarantee an exit nor a timeline for any liquidity event for any of our offerings. However, the majority of investment opportunities on our platform are companies that have received institutional financing from late-stage or growth investment funds, that typically have an investment horizon of 2-5 years. Given the liquidity of investments available via the MarketX Ventures platform, these investments are not suitable for all investors. Please consider your investment time horizon before you make an investment with MarketX Ventures.

An investment involves significant risks where an investor could lose all or a substantial amount of his or her investment, and is suitable only for persons who have limited need for liquidity and who meet the suitability standards set forth by FINRA. Each potential investor should not construe the contents on MarketX Ventures as legal, tax, investment or other advice, and should obtain the advice of legal, accounting, tax and other advisors before making any investment decisions.

Your MarketX Ventures Specialist will contact you and facilitate the transfer of economic interests to you. Typically, the common stockholders prior to an IPO are subject to a 180-day lockup after the IPO date. During the lockup period, sale or transfer of shares is generally prohibited, so the transfer will take place after the lockup period.

The proceeds received by the shareholder (stock and/or cash) would be transferred to the Fund, after which MarketX Ventures (the Managing Member) would distribute these proceeds to the Investors in accordance with the OPerating Agreement.

While we view the subscription of Fund interest as a long-term commitment, your interests in a Fund are generally transferable which allows you the possibility to sell your interest. We will help you list your fund interest on the MarketX Ventures platform so other investors can see it. While we can assist you in selling your interest in the fund, we cannot guarantee we’ll be able to find a buyer, or close a transaction for you. You are also able to use other means on your own to find a suitable buyer of your interest.

A company you invest in may very well raise an additional financing round(s). While your percentage ownership in the Fund will remain the same, the Funds percentage ownership in the Company would decrease (as more shares are created).The Fund and MarketX Ventures as Manager of the Fund typically will have no voting rights or input into any decision the Company makes regarding capital raising.

For private securities there currently is no recognized exchange that publishes a price publicly that the shares of a Company traded for or indicative of a price that a trade could be executed at. If you decide to sell, through whatever means you are able to identify a buyer, the share price will be a price negotiated to close the sale. You will be selling your interest in a Fund, you do not directly own shares in the Company. There are no assurances that there will be new information to corroborate any share price at any time. In the instance where you seek MarketX Ventures assistance in finding a buyer for your interest in a Fund, we cannot guarantee the ability to find you such a buyer to exit your investment before a liquidity event.