Have you ever been to a concert and wished you could be one of the cool kids with an “Access All Areas” lanyard hanging around your neck? As potentially one of the best alternative investment platforms on the market, Propel(x) can provide investors with backstage pass access to alternative investments. We’ve come a long way since we launched as a specialist in deep technology startup investing and have now evolved into a multi-asset alternative investment platform.
What are Alternative Investments?
Alternative investments are any investment that is not publicly traded, meaning they sit outside the traditional markets of stocks, bonds, and cash. Examples of alternative investments include private equity, hedge funds, real estate, precious metals, cryptocurrencies, commodities, collectibles, and more. For a refresher on the sector, please feel free to check out our article What are Alternative Investments, and should I have some in my portfolio?
Growth in alternative investing
Alternative investments have grown significantly in recent years and the trend is predicted to continue. Data from financial analyst Preqin shows the global alternatives market grew at a Compound Annual Growth Rate (CAGR) of 10.7% from 2015 to 2022, with Assets Under Management (AUM) jumping from $7.23tn at the end of 2015 to $13.32tn at the end of 2021. Preqin forecast the alternatives growth rate to accelerate to a CAGR of 11.7%, with AUM predicted to reach $23tn by the end of 2026.
With the growth in alternatives and the greater access to opportunities in the sector, there is an increasing level of awareness, knowledge, and education among investors that is expected to continue to fuel demand for alternative investments.
You can read more about the growth in alternatives in our article 5 statistics that show the growth of alternative investing.
Should I invest in alternatives?
Many investors seek alternative investment opportunities in the pursuit for potentially higher returns and to diversify their investment portfolio. You can read more about portfolio diversification in our articles Build a Diversified Portfolio with Venture Capital on the Propel(x) Platform and Out with 70-30 and in with 60-30-10.
Of course, it’s critical to remember that alternatives such as private placements are a high-risk investment, an investment in such an offering is speculative, and an investor could experience an entire loss of principal. Private investments are highly illiquid and risky and are not suitable for all investors.
How to access alternative investments
In the past, access to private equity deals has often been limited to investment firms and high net worth individuals with a wide industry network and strong connections. But the market has changed, with new legislation, new technology, and new investment platforms now making private equity accessible to most investors.
Our Propel(x) alternative investment platform enables access for accredited investors to alternative investment opportunities including:
- Private equity investing in what we believe to be quality startups that have been thoroughly vetted by our team in a comprehensive due diligence process.
- Hedge fund investing including our latest offering of the Svelland Global Trading Fund, which was ranked by respected industry analyst Barclay Hedge as the second best Macro hedge fund per their 1st Quarter 2022 report, delivering comp. annual returns of 47.61% in 2019-2022.
- Venture Capital (VC) fund investing will soon be available on our platform.
At Propel(x), we source deals via our networks and connections, and we manage the relationships with the investors. While many investors struggle for access to these deals, we leverage our extensive VC network to provide access to firms, opportunities, terms, and deals.
What’s the best alternative investment platform?
Well, of course we believe our platform is the best, but don’t just take our word for it – financial analyst and media firm Benzinga in their 2022 investment platform review rated Propel(x) as the best alternative investment platform for accredited investors*.
Listed below are a few things we believe help distinguish us from our competitors:
- Multi-asset platform – as an example, we offer hedge funds and startups on the same platform
- Curated deal flow of investment opportunities.
- The confidence that comes with using a registered and regulated broker dealer in instances when Securities offerings are done through Propel(x)’s affiliated broker-dealer, Hubble Investments.
- Comprehensive due diligence.
- Affordable investment minimums.
- Investment syndicates managed in-house.
You can read more about our platform in our Platform Spotlight article 11 key benefits of the Propel(x) investment platform for alternative investing.
Invest alongside some of the biggest names in the business
Now that we’ve talked a bit about alternative investments and the Propel(x) platform, let’s get back to the concert and those backstage passes. Instead of missing out on potential opportunities, Propel(x) provides accredited investors with access to deals with the potential to invest alongside some of the biggest names in the business. Listed below are just a few deals where accredited investors on the Propel(x) platform invested alongside notable investors:
- Varo Bank, who raised capital on the Propel(x) platform in a Series E round in 2021. Notable institutional investors include Lone Pine Capital, TPG, BlackRock, Tiger Global, Berkshire Partners, and Silicon Valley Bank.
- Decent Health Insurance, who raised capital on the Propel(x) platform in a Series A round in 2022. Notable institutional investors include QED, Menlo Ventures, Foundation Capital, and Sequoia Capital.
- TaskHuman, who raised capital on the Propel(x) platform in a Series B round in 2022. Notable investors include Madrona Venture Group, USVP, and Impact Venture Capital.
- Brelyon, who raised capital on the Propel(x) platform in a Seed round in 2020. Notable investors include Lockheed Martin, E14 Fund, and LG Display.
The future of alternatives
We believe the growth in alternative investments is here to stay and we are constantly innovating and improving our platform to keep it at the leading edge of development in alternative investment platforms. We are committed to our ongoing quest to democratize access to quality investment opportunities for accredited investors.
If you are interested in building your portfolio by adding investments in startups, you can find more information here on how to start angel investing and how to find opportunities for angel investing on the Propel(x) platform.
This article is not an offer to sell or the solicitation of an offer to buy any security, which only can be made through official offering documents that contain important information about risks, fees and expenses. This article is for informational purposes only. We do not provide legal, financial, or tax advice and investors should consult their advisors prior to making any investment. As with any investment, past performance is no guarantee of future performance, and any investment decision must balance the risk against the potential return. Private investments are highly illiquid and risky and are not suitable for all investors. There is no guarantee that a liquidity event will ever take place. Even if a liquidity event takes place there is no guarantee that the investor will earn a return. Private placements are high-risk and there is a risk that an investor could lose their entire investment.
This article contains links to third-party websites. These links are provided solely as a convenience to you and do not imply an affiliation, sponsorship, endorsement, approval, investigation, verification, or monitoring by us of the contents on such third-party websites. We are not responsible for the content of any website owned by a third party and do not guarantee the accuracy, timeliness, completeness, suitability, reliability, or usefulness of any information.
Certain securities offerings are done through Propel(x)’s affiliated broker-dealer, Hubble Investments. Propel(x) itself is not a registered broker-dealer.
*Benzinga is an affiliate marketing partner of Propel(x).