"Co-investing alongside VCs" is a phrase you'll see on Wealt. Here's exactly what it means in practice.
How it works:
A venture capital firm (the "lead investor") negotiates an investment into a company - say, a Series B round at a $200M valuation
The VC commits its own capital (e.g., $20M)
There's additional allocation available - the VC or the company offers some of this allocation to Wealt
Wealt creates an SPV and opens the deal to individual investors on the platform.
You invest through the SPV at the same valuation and terms as the VC.
What "same terms" means:
Same valuation: You're buying shares at the same price per share as the VC
Same equity class: Your SPV typically holds the same class of shares (e.g., Series B Preferred)
Same rights: Pro-rata, information rights, and liquidation preferences are typically mirrored
Why does this matter? Traditionally, these deals were only accessible if you could write a $500K+ cheque and had a personal relationship with the VC.
Wealt democratises access by pooling smaller investments through SPVs, giving you the same economic terms as institutional investors - just at a lower entry point.
What it does NOT mean:
Wealt is not a VC fund - you choose which deals to invest in (deal-by-deal, not a fund commitment)
You don't have a board seat or direct relationship with the company - the SPV represents all investors collectively