By: Nik Korba
Investors seeking higher returns, diversification, and long-term investment horizons can find them in private equity. However, gaining access to private equity opportunities, especially those with large-cap companies that seem poised for explosive growth, can be extremely challenging.
Sand Hill Road Technology Fund was established to make it easier for accredited investors to access those types of companies.
“We saw a disconnect in the investment space that was effectively locking accredited investors out of some of the most promising private equity opportunities,” shares Robert Hodgins, fund manager at Sand Hill Road. “Large venture capital (VC) firms could access companies that financial advisors, family offices, and retail investors could not. At Sand Hill Road, we bridge the gap, opening the door for more investors to access large-cap private equity.”
Sand Hill Road Technology Fund is focused on providing access to cutting-edge technology companies before they go public. Essentially, it is a private equity VC fund and technology platform with a reputation for identifying tech companies with the potential to become industry leaders. Registered investment advisors, hedge funds, family offices, and other accredited investors can leverage it to invest in large private companies that are approaching an initial public offering.
“The lack of access to private equity is one of the biggest problems investors face in today’s financial landscape,” Hodgins says. “Our platform adds value to investors by solving that problem.”
Simplifying the path to private equity
Sand Hill Road plays a unique role in the investment space, providing a specialized service that streamlines access to private equity. It allows its members to realize returns that are directly correlated to the companies they invest in, with no correlation to the fund itself.
“We are not a broker-dealer and do not structure mutual funds or give financial advice,” Hodgins explains. “We are a platform that facilitates the purchase of private shares in large, later-stage companies. We simply facilitate the delivery of purchased shares to the broker-dealer platform our members designate. Investors looking for insights on suitability or projections will need to seek that information from their financial teams.”
The onboarding process for members involves only a few simple steps, starting with a sign-up process that verifies an investor’s accreditation status. Sand Hill Road encourages investors to review documentation and do their due diligence with the support of their personal financial advisor or CPA before becoming members of the fund.
“We encourage our members to see us as the technological conduit to private equity because we serve private equity investors in a way similar to how Amazon serves the retail sector,” Hodgins says. “Investors use our platform to choose what they want to invest in, complete the transaction, and provide us with a delivery address. Then, we make sure it’s delivered via DTC to their account.”
Implementing a strategy for identifying impactful investments
Hodgins brings a unique skill set to Sand Hill Road that has empowered him to identify and nurture high-growth potential within the technology sector. His strategic leadership with the Sand Hill Road Technology Fund has led to the creation of a portfolio that is robust and poised for substantial returns.
“We analyze and select only very large-cap private companies that have proven track records in their respective sectors,” Hodgins explains. “Without those qualifications, they aren’t considered as candidates for the fund.”
Sand Hill’s analysis process begins with meticulous research aimed at identifying promising technology startups with the potential for significant impact and growth. Once identified, those companies are evaluated to determine whether they have the business model, team, market potential, and technological innovation to support viability and scalability.
To secure private equity for the fund, Sand Hill Road collaborates with an exclusive network of investors. Some notable companies that have been included in the fund to date include tech sector giants like OpenAI, SpaceX, Stripe, DuckDuckGo, and Neuralink.
“Our deep understanding of market dynamics and commitment to technological advancement gives us an edge in identifying sound investment opportunities in the tech sector,” Hodgins shares. “By leveraging strategic partnerships and our extensive network of private equity investors to support the growth of portfolio companies, we help investors tap into an approach that mitigates risk and maximizes the potential for high returns.”
Private equity investing has evolved over the past decade in a way that has made it increasingly difficult for smaller investors to get involved. Sand Hill Road seeks to level the playing field by creating opportunities for any accredited investor.
“We launched the Sand Hill Road Technology Fund with the belief that a platform providing an access point to large private companies — the same type of access Schwab or Merrill Lynch platforms provide for Google or Apple shares — would deliver significant value to our members,” Hodgins says. “In today’s startup landscape, where access to venture capital empowers companies to stay private longer, our platform gives investors exactly the tool they need to tap into the large private companies poised to deliver large returns.”
Published by: Holy Minoza
