We invest in fast-growing, early-stage companies to speed innovations from concept to clinic for the benefit of patients with digestive disease.
Targeting a $2.5 million fund
$25,000 minimum commitment, paid upfront
Portfolio of investments in early to growth-stage companies, primarily in GI.
How It Works
Review the fund subscription documents.
Complete the accredited investor questionnaire and sign the subscription documents in less than 5 minutes.
Make your capital contribution to finalize your investment.
Monitor your investment, signup to judge pitches, and access other available investment opportunities—all from the palm of your hand!
Book a call with our team to learn more or ask any questions before investing!
Frequently Asked Questions
(Last updated as of September 19, 2022)
Do you need to be accredited to invest in the fund?
Yes. In general, you must have $200k in annual income, or $300k with your spouse, or $1m in net assets (excluding your primary home and mortgage). We also need to verify this information, which is completed through our platform or a letter that we ask your personal accountant or investment advisor to provide confirming the same.
What is your investment criteria?
Every opportunity is a bit different – but we are generally looking to invest in companies that have:
- Meaningful opportunity in GI
- A product or service that fills a significant unmet need
- Enough of their innovation (whether device, technology, pharmaceutical, service, etc.) built out to provide a degree of confidence that the innovation is moving forward as envisioned (i.e., beyond an “idea” or, typically, beyond “pre-seed”)
- Significant barriers to entry (i.e., IP, etc.)
- Clear and achievable FDA pathway, if applicable
- A dedicated and capable team, supported by one or more key opinion leaders
- Capital / capital commitments to execute plan until next financing
- An opportunity that receives positive feedback from our network or investment from a credible lead investor
What is your due diligence process like?
In general, we have a three-phased diligence process. First, we seek feedback from relevant key opinion leaders to assess the quality of an opportunity. If the clinical feedback is positive, then we review the applicant’s business model, including the market opportunity, competition, and potential return on investment. Next, we complete a legal review, including the company’s corporate structure, intellectual property and regulatory pathway if relevant. That being said, if there is a credible lead investor already, we may leverage or rely on the diligence completed by that investor.
Does the fund provide support to its portfolio companies other than money?
We endeavor to provide our companies with additional support and connections. From time to time, we may serve on the board of directors of our portfolio companies.
Do I get to pick the deals I invest in?
The manager of the fund makes decisions about the fund’s investments. You may be asked to judge or review company applications or pitch presentations if you have an interest in doing so. In addition, the fund may provide “side-car” opportunities that would allow you to co-invest with the fund in a particular investment opportunity. Please contact the manager at email@example.com to learn more.
What are the fees associated with the fund?
For our funds, we generally charge a management fee and “carried interest” on investor profits. Varia shares these profits with its partner organizations. This means that once you have received a return of your capital, a portion of the excess profits will be paid to you, and a portion will be paid to the manager. You will also be responsible for certain expenses of the fund.
Can I increase, decrease or cancel my subscription?
Once you sign the subscription documents, you are committed to fund. If your circumstances change before the initial closing of the fund, please contact the manager at firstname.lastname@example.org. You can also increase your subscription at any time through the platform.
How do I make my capital contribution?
Once you sign your subscription documents, you will wire to the fund’s bank account (wire instructions will be shared with you at that time).
Can I fund through an IRA or retirement account?
Yes, you can invest using a self-directed IRA or retirement account. Please check with your brokerage firm to see if it acts as a custodian for private investments, and if it does not, please contact us at email@example.com for a recommendation to a third-party custodian that can quickly and seamlessly assist.
Can you fund your investment through a company/LLC?
Yes, you can invest personally, together with your spouse as co-owners, through a trust or through a company, including an LLC.
Can my medical practice invest in the Fund?
Yes, the medical practice would be listed as the investor on the fund’s ownership table and receive on K-1.
What is the typical exit timeline?
Venture investments most commonly have 7-10 year lifespans.
How do distributions work?
Distributions are typically made upon an exit by a portfolio company and the receipt of any proceeds by the fund.
Can I liquidate my investment at any point?
Investors can’t liquidate their positions prior to a portfolio company exit or liquidation of the fund at the end of its lifecycle (which is generally 10 years).
Will the fund provide updates on its investments?
The manager will provide you with investment and other updates from time to time on your investor dashboard or via email.
How do I receive my K-1 documents?
The manager provides all investors their K-1s electronically and free of charge. These will be provided on your investor dashboard.
Who do I contact if I have questions?
Are you a founder?
Click here to submit your application for GI Opportunity Fund 1 investment consideration.
The information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction. Any such offers will only be made pursuant to formal offering materials containing full details regarding risks, conflicts of interest, minimum investment, fees, and expenses of the fund. Information on this page is qualified in its entirety by the fund’s private placement memorandum, subscription agreement and limited liability agreement, which should be reviewed carefully prior to making an investment decision. Please see these documents for full details regarding risks, conflicts of interest, minimum investment, fees and expenses.