The Connetic Venture Capital Access Fund (the “Fund”) is a closed-end interval fund. An interval fund is legally classified as a closed-end fund, but it is unique in that it shares several key features with mutual (open-end) funds. Thus, interval funds are often referred to as a hybrid between closed-end and mutual (open-end) funds.

The Connetic Venture Capital Access Fund, as an interval fund, differs from traditional closed-end funds in two important ways:

• The Connetic Venture Capital Access Fund shares are continuously offered by the Fund for purchase by investors at net asset value (NAV) rather than traded on an exchange (in the secondary market).
• The Connetic Venture Capital Access Fund redeems its shares through quarterly repurchase offers of up to 5% of the Fund’s outstanding net assets at NAV.

Investors can invest in the Fund at any time through participating brokers or directly with the Fund. Contact the Fund’s Administrator at +1.800.711.9164 to inquire about Fund accessibility via a specific broker or any questions about investing directly with the Fund.

Investors must review the Fund prospectus prior to investing.

The Fund is classified as an association taxable as a corporation for U.S. federal tax purposes. The Fund also (i) will elect to be treated as, and (ii) intends to operate in a manner to qualify as, a “regulated investment company” (a “RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended. As a RIC, the Fund generally will pay no U.S. federal income tax on the earnings or capital gains it timely distributes to shareholders. This avoids a “double tax” on distributed earnings normally incurred by taxable investors in regular “C corporations.” Shareholders normally will be taxed on their Fund distributions (unless their Shares are held in a retirement account that permits tax deferral or the holder is otherwise exempt from U.S. federal income tax). Tax-exempt U.S. investors generally will not incur unrelated business taxable income with respect to an investment in Shares if they do not borrow to make the investment. The Fund’s tax reporting to Shareholders are made on IRS Forms 1099.

Please note that the information provided herein is for educational and informational purposes only, and should not be construed as any investment, financial, legal, or tax advice.

The investment adviser for the Fund is Connetic RIA LLC (the “Adviser”). The Board of Trustees of the Fund has overall responsibility for monitoring the Fund’s investment program and its management and operations. View the Board of Trustees.

The Fund’s annual advisory fee is 1.90%. The Fund has a total annual expense limitation of 2.68%. For details, see the Fund’s prospectus.

Unlike traditional venture capital funds, the Fund is open to investors regardless of accreditation or qualification. In addition, the Fund offers 5% liquidity on a quarterly basis, so investors are not locked up for longer periods like in traditional venture capital funds.

As the Adviser, we believe our differentiated value proposition combined with our network of co-investors, public companies, founders, and academics provides access to the most promising private technology companies.

The single 1.90% management fee may be more cost-effective to some investors than traditional venture capital funds under the ”2 and 20” model (2% management fee, 20% carried interest).

The Adviser actively sources deals from its network of co-investors, public companies, founders, and academics. All deals are analyzed by our proprietary analyst, Wendal, that provides the Adviser data-driven recommendations on quality of investment opportunities.

Post initial screening by Wendal, all companies go through a second-round rigorous due diligence process, including corporate diligence as well as discussions with the Adviser.

The Fund offers quarterly repurchase offers that enable investors to sell shares. Even though the Fund will endeavor to make quarterly repurchase offers to repurchase a portion of the shares to provide some liquidity to shareholders, investors should consider the shares to be illiquid. The Fund conducts quarterly repurchase offers for 5% of the Fund’s outstanding Shares at NAV. The Fund maintains liquid securities, cash or access to a bank line of credit in amounts sufficient to meet quarterly redemption requirements. Shareholders are notified of repurchase offers approximately 30 days before the repurchase request deadline. 

There is no guarantee that you will be able to sell all of the shares you desire in any quarterly repurchase offer. An investment in the Fund’s Shares is not suitable for investors that require liquidity, other than liquidity provided through the Fund’s repurchase policy.

More details can be found in the Fund prospectus.