Aurora Venture Partners focus on early stage digital media ventures is designed to produce high returns while managing risk.
The overall digital media market is growing so rapidly that it tends to have less general economic cycle risks than sectors that are more mature and tightly integrated to the general economy. Digital media ventures are characterized by relatively low capital requirements and rapid market entry which limits the amount of capital at risk in any one venture. This, in turn, allows Aurora to place a larger number of investments, spreading risk over a broader foundation.
Common infrastructure requirements between many digital media ventures allows synergy between investee companies, lowering their capital requirements, again allowing Aurora to place more investments and further spread risk.
Such risk-spreading techniques are not possible in typical wide-focus venture funds, partly because of greater individual capital requirements of investee companies and the difficulty of spreading the venture fund expertise. Our focused approach allows us to know more pertinent information about a larger number of investee companies and the factors that determine success, applying our expertise more efficiently and effectively.
Most venture capital funds present a rigid one-size-fits-all option for all investors, who must invest in a single fixed fund structure, no matter how their personal assets and tax position may be structured. Aurora Venture Partners offers a unique service to its investment partners through which they may customize their investment to achieve the highest return on capital and optimal usage of investment tax credits and RRSP vehicles.
Based on consultation with the investment partner’s portfolio goals, often with the involvement of the partner’s legal and accounting advisors, Aurora can help customize an investment for highest leverage and personal return.
Multiple options include, for instance, structures that deliver 30% refundable tax credit on up to $ 1 million invested for residents of British Columbia and extended to provide up to 43% shelter of taxable income up to the investor’s eligible contribution limit because shares are eligible for contribution to the investor’s RRSP, .
Other investors may prefer a structure to provide the maximum flexibility for investors who wish to participate in a flow-through structure in a limited partnership vehicle which allows the investor to flow through profits without taxation in the fund.
Under some circumstances we may be able to recommend a structure that allows investors to realize value from underperforming stocks in their portfolio that have lost most of their value and have no liquidity, transforming them into a high-yield-potential investment in a broad range of Aurora-managed digital media placements.
For More Information on how Aurora can structure an investment partnership for you, please contact: