In most cases, wealth creation requires entrepreneurship of some type, and private equity participation of any type normally requires a large capital, making it possible only for a few high networth individuals (HNIs) or corporates.
7Avenues breaks this entry barrier because we are:
- Holding venture company formed by individuals (shareholders) with diverse and proven professional background and similar mindset to fund and operate ventures through operating model stage - where 'value-investors' come together in a networked and empowered group with the objective of generating superior returns while executing new ventures with a passion.
- Access to higher ticket investments and business expertise to take the operating companies to next phases- scale up, equity dilution, trade sale or IPO. In most cases, we will prefer to own our ventures. Why sell something that is generating profits and leveraging the skills of our team members?
- Platform for investors with any investment amount (from Rs 50k to 20 lakh) to realize, without an undue financial exposure, the upsides provided by venture funding – otherwise a domain of only large investors and High Networth Individuals (HNIs).
Have you wondered what makes for wealth creation? And what are the returns on your portfolio today? And why you are left out of the wealth creation scenario despite many ideas, right education, good salaries and savings?
Lets take an example. Suppose a person A with Rs. 100 assets is getting a return of 15% (quite high already) and other income of 5% (say salary savings), the net growth is 20% or Rs. 20. On the other hand, a person B who invests Rs. 4 in wealth creation (entrepreneurship or venture funding) and is successful, the returns can be 1000% or Rs. 40. It will take a few years for this person to create huge wealth at this rate, while person A may be around Rs.200 of assets. Person B takes the risk of losing Rs. 4 or Rs. 40 while person A is not able to take the same chances.
Person A can invest in a venture fund or a private equity fund, and probably take 40-50% returns, but
1. these funds are not available/closed to even modest HNIs, and
2. these funds normally do not get the returns that a promoter or the entrepreneur gets, because their fund managers often take upto 20% returns as their fee as part of operating expenses.
Normally, Person A cannot take or does not want the risk of losing a steady revenue stream (salary), yet eager and most creative. If you feel like person A, 7Avenues is providing the platform. And after 2 years of limited new member addition, and testing our strengths, we are ready to open up the network and take new members.
Summary:
- The Need: To create wealth similar to promoters/ entrepreneurs/ VCs and willingness to take a limited financial exposure, and put effort where necessary
- The Constraint: Cannot compromise on current lifestyle/ take undue financial exposure. Most Venture Capital/Private Equity funds have a minimum investment criteria (call it club) starting Rs. 5 crores – a reason for rich getting richer
- The Solution: 7Avenues. We make investments in multiple high-growth ventures, but we are not a private equity fund. You investment in 7Avenues through shareholding in our company, and we run the companies in the portfolio. The income of 7Avenues will be the earning of the portfolio companies.
7Avenues Model:
- 7Avenues operates its companies with ideas generated and screened internally through a dedicated work-group made of experienced investors. 7Avenues becomes the promoter and investor for the first stage: Establishing a working and profitable business model. And if the growth requires additional capital, that is possible through our global business network.
- You can decide your Investment level starting Rs.50K (for 7Avenues shareholding). We just control the invite into 7Avenues so that we have people whose investment goals match ours.
- Our CXOs/Business Leaders come from the group – giving new challenges to individuals as well as high commitment to our cause
- Track Record : Have 150+ members with distinguished backgrounds. 7Avenues is a group of reputed professionals (including CEOs) who have invested as shareholders in 7Avenues7Avenues, in turn is creating its own operating companies.
- We currently have 3 good performing portfolio companies, and a few more new ventures in the early stages.
Our Goal: Provide wealth creation and professional growth opportunities to our members.
Our Values: Long term dedication, transparency and benefits for All members.
Our Proposition:
- Enable private equity participation for you
- Build value through high-growth ventures with diligent execution
Our Beliefs:
- Our Business Runs on Trust, and we are committed to increase the networth of our Investors
- Involve Best People and Let Them Perform. Most ventures fail due to the most critical resource: People. Our members are successful professionals and form the foundation of our success.
