Redstone and NAO open venture capital investments to private investors

The Berlin-based investment company Redstone is starting a new chapter in the European venture capital landscape with the Redstone Global Venture ELTIF. For the first time, private investors will also have access to broadly diversified VC investments. This is being achieved through a strategic partnership with the Berlin-based WealthTech NAO. Via the NAO platform, investors can invest from 1,000 euros in a portfolio of more than 200 start-ups.

Venture capital becomes accessible

Until now, access to VC funds was almost exclusively reserved for institutional investors or very wealthy private individuals - mainly due to high entry barriers, regulatory complexity and time-consuming processes.

Venture capital was previously difficult to access - even for many institutional investors. With the ELTIF, we are making it easier to get started, both administratively and financially. Together with NAO, we are democratizing institutional VC quality - at a historically attractive time.

Michael Brehm, General Partner at Redstone

With the new European Long Term Investment Fund (ELTIF), this is changing fundamentally: investments are now possible directly via many custodian banks and, for the first time, via an app for small amounts through NAO.

Over 200 start-ups in ten technology sectors

The fund bundles investments in over 200 European start-ups from various redstone funds and covers more than ten specialized technology sectors, including FinTech, Artificial Intelligence, DeepTech, Health and Education.

The portfolio includes well-known names such as PlanRadar, Timeleft, Finanzguru and Exein. The fund offers a balanced risk/return profile thanks to its broad diversification by sector, region, company phase and business model.

No double fee structure

Another advantage of the model is that the usual double fee structure of traditional fund-of-funds structures is almost completely eliminated. Investments are possible in tranches of 25,000 euros, 250,000 euros and 5 million euros, as well as from 1,000 euros via NAO, which represents a real opening for small investors.

NAO offers a simple and digital way to subscribe via its platform, without manual processes or high complexity.

Favorable market timing

The timing for entry is considered particularly attractive: historical data shows that VC funds that start in economically difficult years achieve above-average returns in the long term. According to the company, the average IRR is 17.5 percentage points higher than in other years.

German private investors have so far missed out on one of the most lucrative asset classes. With Redstone, we are changing that - with access to over 200 start-ups in ten specialized technology fields. This is true institutional diversification.

Robin Binder, founder and CEO of NAO

The active Redstone funds already achieve an IRR of up to 40 percent according to their own information, making them among the top quantile worldwide.

Conclusion & disclaimer

The Redstone Global Venture ELTIF provides a new type of access to professional VC portfolios. The cooperation with NAO makes it possible for the first time for small investors to participate directly in the financing of innovative European start-ups without compromising on diversification or quality.

Disclaimer Startbase: This article is for general information purposes only and does not constitute financial, investment or legal advice. It is expressly not a recommendation to buy or sell financial products - especially not for private investors. We report journalistically and neutrally on developments in the start-up and investment sector. Investors do so on their own responsibility and should seek individual advice before making an investment decision.