The Avestix Approach to Integrated Investing
Some investors employ an integrated strategy as they build their portfolios. Learn how Avestix constructs its integrated investing plan as we seek to help accredited investors succeed.
At Avestix, our mission is to democratize the investing process by giving accredited, high-net-worth investors, institutional investors, and family offices the ability to access a variety of often-overlooked, alternative investments that may bring additional diversification to their portfolios.
Our approach to diversified investing is sometimes called integrated investing, defined as “an investment strategy that combines various types of investments to optimize returns while minimizing risk.” Currently, Avestix offers diverse investment opportunities in commercial real estate, venture capital, women-owned businesses, and public markets — investment sectors that we believe are becoming more dynamic.
Here are the primary investment sectors that Avestix is focused on, along with brief overviews explaining why we are bullish on these segments.
Real Estate
Technology is rapidly revolutionizing every industry and real estate investing is no exception. Blockchain technology now enables fractional real estate ownership and tokenization (where real estate assets are converted into digital tokens). Both of these advancements make real estate more accessible and — potentially — a more liquid asset, which can bring additional diversification to a portfolio.
Venture Capital
Venture Capital (VC) may experience an increase in cross-sector investments, with a greater emphasis on tech-driven innovations in traditional industries like real estate and financial services. The rise of AI, blockchain, and fintech may help create new opportunities in these and other industries.
Women-Owned Businesses
Research shows that VC firms with 10 percent more female investing partners “make more successful investments at the portfolio-company level, have 1.5 percent higher fund returns, and see 9.7 percent more profitable exits.” In other words, investing in women-driven startups may drive profits, meaning they may also make good investments.
Read more about Susan Lindeque's support of women-owned businesses here.
Public Markets
Avestix believes the line between private and public markets has already started to blur and will continue doing so as more companies opt for late-stage private funding rounds before going public. The rise of Special Purpose Acquisition Companies (SPACs), where companies are formed by raising capital, signals that public markets may be an attractive fund-raising to some entrepreneurs.
As Avestix vets companies and investment opportunities to include in our Funds, we look for key differentiators. Here are some of the considerations we use to evaluate prospects:
State-of-the-Art Technology
Avestix looks for organizations leveraging advanced technologies such as blockchain, artificial intelligence (AI), and data analytics in ways that set them apart.
A Focus on User Experience
We look for opportunities that deploy a seamless and intuitive user interface, mobile compatibility, and personalized dashboards to enhance their customer’s user experience (UX).
Diverse Investment Opportunities
We consider opportunities that provide investment opportunities across different asset classes and locations to appeal to a wider investor base.
A Commitment to Transparency & Security
Just as Avestix promotes transparency and security in our offerings, we expect the same from the organizations we support.
Strict Adherence to Regulatory Compliance
Staying compliant with regulatory requirements and offering access to a wide range of regulated investment products can set a platform apart in credibility and trustworthiness.
Partnerships & a Growing Ecosystem
Building partnerships within industries and market sectors can help an organization’s credibility and better position it as it expands the goods and services it offers customers.
A Commitment to Sustainable, Ethical Investing
Just as Avestix is committed to sustainability, we look for investment options that align with ESG principles and ethical investing practices.
Top-Notch Customer Support & Education
Providing excellent customer support and educational resources is table stakes for any organization hoping to thrive. By doing so, organizations can build long-term relationships and brand loyalty.
This article is just a brief overview detailing how Avestix structures its funds and some of the factors we take into consideration as we evaluate new opportunities to support.
We also provide our investment community unparalleled transparency, a commitment to sustainable and ethical investing practices, and access to a comprehensive platform designed to enable them to better manage their portfolios.
If you would like to learn more about the Funds we offer — or if you think your real estate project or startup would make a good addition to our investment portfolio, contact us here.
