Further detailed information is contained in the Information Memorandum (IM)Download IM
OurCrowd is the world’s leading technology and venture investment platform with almost USD1.5 billion in committed funds from over 69,000 members.
OurCrowd invests its own capital in all companies and funds available on its platform, and invites members to invest alongside venture and institutional investors at the same terms. OurCrowd has a highly selective deal flow and conducts in-depth due diligence, investing across various industries including artificial intelligence, healthcare, agritech, cyber security, food tech, autonomous driving and drones. The company believes that broad diversification is an essential component of venture investment and has developed a vehicle to provide this to investors - an index fund.
Post-investment, OurCrowd provides mentorship, takes board seats, invests in follow-on rounds, and fosters strategic multinational partnerships. At the same time, OurCrowd’s team builds its network of multinational partners while fostering relationships between its portfolio companies and a global network of multinational scouts, investors and innovators.
Snowball Effect has partnered with OurCrowd to give kiwi investors a simple way to get access and exposure to these global opportunities, and is now offering wholesale investors the opportunity to invest in OurCrowd 50 Series V.
OurCrowd is launching its fifth series of its index fund, OurCrowd 50 (OC50) Series V, which allows investors to invest in a diversified vehicle of venture-backed businesses. OC50 will make 50 equally-weighted investments across OurCrowd platform transactions that meet the fund’s criteria, across a range of markets, sectors and stages. The fund has a funding target of USD20m.
OurCrowd launched their first index fund OC50 Series I in 2017, and has had 6 exits including investments in Beyond Meat, JUMP (acquired by Uber), and Lemonade.
This fund provides access to venture opportunities to wholesale investors - opportunities that are otherwise only available to large family offices and institutional investors, and ultra-high net worth individuals.
1.5% annual management fee for the term of the Fund (+ admin etc)
20% above 1x, 25% above 3x
Investing in fifty consecutive OurCrowd deals
50 portfolio companies
NB: Full information on fees can be found in the 'Terms' section of the offer.
Investing in OC50 Series V provides a simple way for wholesale investors to get exposure to global VC opportunities. All investments will be held within Snowball Nominees, and will be available to view on Orchestra. Because the fund is a Limited Partnership, only wholesale investors are able to invest.
OurCrowd’s previous funds have invested in companies that have been acquired by global multinationals such as Intel, Oracle, Samsung, Nike and Uber. Many companies have also listed on global exchanges such as NASDAQ.
The above investments represent the entirety of OC50 Series I investments as of Q2 2021.
The above exits represent the entirety of OC50 Series I realisations as of Q2 2021. Past performance is no guarantee of future results.
Reflects transactions that have not yet closed and transactions that have consummated but are subject to lock up. The above exits represent the entirety of OC50 Series I exits in process as of Q2 2021.
OC50 Series I has already returned nearly 20% of investor capital during 2020. As of the end of Q2 2021, Series I has had seven exits which generated 2.67x return on invested capital for these investments.
Based on data published by Cambridge Associates, OC50 Series I’s distribution performance can be found in the range of top quartile of US VC funds with a 2016-2017 vintage, placing OC50 Series I’s distributions over a year ahead of top-quartile US VC funds.
The above investments represent the entirety of OC50 Series II investments as of Q2 2021.
Reflects transactions that have not yet closed and transactions that have consummated but are subject to lock up. The above exits represent the entirety of OC50 Series II exits in process as of Q2 2021.
The above investments represent the entirety of OC50 Series III investments as of Q2 2021.
OurCrowd strongly believes in diversification of portfolios by industry as well as stage. OC50 Series Funds have historically invested in a range of stages, from seed investment through to Series K, and through convertible loan agreements (CLA) and simple agreements for future equity (SAFE).
Please be aware that investments in early stage companies or in venture capital funds contains a high level of risk and you should consider this prior to making any investment decisions. Past performance is not indicative of future results.
Founded in 2013, OurCrowd is led by serial entrepreneur Jon Medved and run by a team comprised of entrepreneurs, venture capitalists, investors, and geeks with decades of combined experience building businesses, raising capital, and investing in Israeli and global startups.. Jon Medved has been part of the founding teams at several successful Israeli startups, and as a venture and angel investor over the past two decades he invested in almost 250 startup companies, helping to bring 25 of them to values in excess of US$100M.
After due diligence is conducted, the 7-member investment committee (listed below) must have a majority in favour of a deal for it to launch. This process is consistent across new investments and follow-ons.
Name: OurCrowd 50 V, L.P.(the "Fund")
Entity: A British Virgin Islands limited partnership (LP).
Investment Objective: To generate favourable returns, principally through long-term capital appreciation, by making, holding and disposing of equity and equity-related investments in the first 50 OurCrowd portfolio company investment opportunities following the initial closing date of the Fund.
Target Portfolio Size: 50 investments into portfolio companies, which shall include (a) initial investments by OurCrowd in such portfolio companies, and (b) investments in portfolio companies in which OurCrowd has previously invested, and (c) investments in portfolio companies made indirectly through co-investment vehicles established by third party managers with which OurCrowd has a strategic relationship for the purpose of investing in such portfolio companies.
Investment Limitations: The Fund shall not: (a) invest in a portfolio company in which OurCrowd invests less than $1M including the Fund’s investment; provided that no less than $500,000 is invested through non OC50 Products, (b) invest in the same portfolio company twice (except in a pay to play financing), (c) invest more than 15% of its aggregate capital commitments into portfolio companies where such investments are made indirectly through co-investment vehicles established by third party managers for the purpose of investing in these portfolio companies, and (d) make an investment in a portfolio company (whether directly or indirectly) even if it meets the above criteria if so determined by the General Partner in its sole discretion.
Minimum Capital Commitment: NZD 20K (via Snowball Nominees)
Fund Term: 10 years, subject to extension by OurCrowd for two one-year terms. The term of the Fund may be further extended by OurCrowd with the consent of a majority-in-interest of the limited partners (including Snowball Nominees).
Fees and Expenses: 1.5% annual management fee for the term of the Fund plus administrative and organisational expenses (e.g., accounting, tax reporting, filing).
Return of Distributable Proceeds: Each investor shall be entitled to a 1x return of contributed capital to the Fund before OurCrowd receives its carried interest. Thereafter, each investor will receive 80% of the distributions for returns of up to 3x, and 75% of the distributions of the marginal increase over 3x.
Reports: Via Snowball Nominees (a limited partner), each investor will receive annual audited financial statements and quarterly unaudited summary financial information of the Fund, subject to the confidentiality provisions set forth in the limited partnership agreement.
Disclaimer: (i) the above is a short summary only of the terms of the investment and may be subject to modifications in the definitive documents governing this investment, (ii) investors are urged to consult their own tax advisor regarding the applicability, effects and implications of the various tax laws with respect to this investment.
 Note that investments into these co-investment vehicles may be subject to additional management fee and/or carried interest charges due to the third-party managers of these co-investment vehicles.
 OurCrowd 50, L.P., OurCrowd 50 II, L.P., OurCrowd 50 III, L.P., OurCrowd 50 III-QP, L.P., OurCrowd 50 IV, L.P., OurCrowd 50 V, L.P., OurCrowd GP Investment Fund, L.P., and any other OurCrowd partnerships formed or that shall be formed in the future with substantially similar investment objectives as the Partnership as shall be determined by the General Partner in its sole discretion.
All investors (Beneficial Holders) who invest in OC50 Series V Fund will have their interests held by Snowball Nominees (Nominee). The Nominee will subscribe for interests in the Limited Partnership on behalf of the beneficial holders. This simplifies the compliance and investment process for New Zealand investors. Snowball Nominees will use the Orchestra registry service, providing shareholders with an online record of their investment in the Fund, along with access to Fund communications and documentation.
In broad terms, the Nominee must:
We encourage all investors to familiarise themselves with the full set of terms and conditions of this offer, along with their obligations as per the Nominee Deed poll.
The distribution of this offer outside of New Zealand may be restricted by law. This is not intended to, and does not, constitute an offer of securities in any place which, or to any person to whom, the making of such offer would not be lawful under the laws of any jurisdiction outside New Zealand. This includes, but is not in any way limited to, Australia and the United States. It is the responsibility of any Snowball Investor to ensure compliance with all laws of any country outside New Zealand relevant to their subscription, and any such Snowball Investor should consult their professional advisers as to whether any governmental or other consents are required, or other formalities need to be observed to enable them to apply for securities pursuant to each offer. The failure to comply with any applicable restrictions may constitute a violation of securities law in those jurisdictions. The securities in each offer have not been and will not be registered under the US Securities Act or the securities laws of any state of the United States.
What is the deployment period of the fund?
2 years or less, which has been the case for the three previous series of OC50.
If there are follow on rounds, can the fund invest in the same company multiple times?
The fund is designed such that it will only make one investment in each company and have a portfolio of 50 companies. However, in cases such as pay-to-play rounds where additional funding is required to avoid dilution in a new financing round, if the fund has cash available it will invest in the same company. This would only be likely to happen at a point when the fund has made an exit and therefore has cash on hand to deploy. This has happened on two occasions previously, although these were small numbers.
Will there be multiple closings of the fund and, if so, will there be penalties for joining at a later closing date?
There will only be one closing for OC50. The reason for this is because they want to make 50 equally weighted investments, and therefore need to know exactly what the fund’s investable capital looks like and divide it by 50. The OurCrowd offer on Snowball's platform will close on the XX 2021.
How is OC50 Series V different from prior OC50 funds?
For the most part it isn’t - the aim is for the OC50 funds to be replicable. However, it can be noted that deployment has occurred more rapidly in more recent series of the fund, dropping from 24 months to 15 months. This may be partly due to the growth in OurCrowd’s existing portfolio over time, as increasingly the fund is investing in companies known to OurCrowd where in-depth due diligence has already been conducted. Stage diversification has also increased since Series I.
How much control and influence does OurCrowd have on its portfolio companies?
OurCrowd is on the board either as a director or observer over half of the companies within its portfolio, and therefore has great visibility and ability to provide input. OurCrowd can therefore leverage its internal capability in areas such as business development.
How did OurCrowd have the required expertise to cover such a broad range of sectors?
OurCrowd has a team of over 25 people on the investing and portfolio management team. In addition, it taps into its networks to bring people to represent OurCrowd on the board who are able to bring relevant expertise.
What would an investor would expect in terms of return on investment after 2 years, 5 years or 10 years?
An important disclaimer is that past performance is not indicative of future results. The OC50 Series (Funds 1-3) is showing a 12.1% IRR. Generally investors can expect that IRR is lower in the 2-3 year range, and accelerates as investments have greater maturation at 5 and 10 years.
What is the unique selling proposition for OC50 when compared to other similar blended venture capital offerings like Angel List or Funders Club?
Investors will be exposed to a far broader range of companies with respect to stage. Furthermore, the OurCrowd has a large investment team that is strong across sectors and have performed well in exits to date. OurCrowd also puts its own capital at general partner level before investing funds which is not the same for other offerings on the market.
After investing, what communications will investors receive from OC50?
Investors will receive a quarterly updates on fund investments and valuations, as well as an annual report. All communications will be distributed to investors via Snowball Nominees, and will be stored in Orchestra for future reference.
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It's crucial for you to understand the characteristics and risks of this investment opportunity. New Zealand law normally requires people who offer financial products to provide in-depth information to investors before they invest. The usual rules do not apply to offers by companies through Snowball Effect. As a result, you may not be given all the information you need to make an informed decision. Investing is risky. Some of the key risks include loss of capital, illiquidity, lack of returns, dilution, loss of key people and customers, and lack of control. You should only invest money that you can afford to lose.