Fuel Venture Capital Adopts New Funding Structure, Aims to Raise $300M

Fuel Venture Capital, a Miami-based early-stage investor in technology and digital companies, is aiming to raise $300 million for its next fund using a new funding structure it says is positioned to “transform the private markets landscape.”

Investors will be able to participate in the Fuel Venture Capital Flagship Fund II through The Fuel VC Note, a listed, centrally cleared transferable Note that can be sold and traded throughout its duration.

The new strategy enables the potential liquidity and transferability of a stake in an underlying asset class that has traditionally been illiquid, while any distributions from underlying liquidity events such as initial public offerings can still be passed through to investors, which means they can potentially exit their investments more easily, compared with traditional venture capital investments.

The fund is already set to invest in seven warehouse companies, all previously backed by Fuel Venture Capital funds, including Betr, RecargaPay, Soundtrack and Your Brand, among others.

Private equity platform Moonfare already uses various forms of feeder vehicles to give investors access to private equity and venture funds in a similar way, but Fuel Venture says the Fuel Note offers unique features and advantages.