Invest in venture-backed companies
Invest in private credit deals
Investments
$500
Investors can enter the private credit market via Percent with a minimum of $500, accessing a variety of asset-based securities and corporate loans.
High Risk
4/5
Investing in Sweater's Cashmere Fund, like any venture capital investment, carries inherent risks. These risks include market volatility, economic conditions, and challenges specific to the companies in which the fund invests.
Moderate Risk
3/5
Investing on Percent comes with inherent risks, despite efforts to minimize these through a proprietary risk framework for its own deals. The risk levels can vary across the platform, depending on whether Percent or a third party underwrites the deal.
Minimum Liquidity
1/5
Sweater provides biannual redemption windows for investors to access their investment before the end of the investment term. However, there may be restrictions and limitations on the redemption process.
Minimum Liquidity
1/5
Liquidity on Percent, as with many private credit platforms, varies by investment. Generally, these investments are less liquid than public stocks, tied to longer-term commitments without guaranteed immediate access to funds.
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Moderate Return
13.41 %
As of February 1, 2024, Percent offers a 2.5% interest rate on idle cash in accounts and reports a historical weighted average APY of 13.41% on investments.
Long-term Investment
1-5 years
Sweater's Cashmere Fund is designed for long-term investments, but they provide biannual redemption windows for investors to redeem a portion or all of their investment.
Short-term Investment
3+ months
Percent offers investment horizons starting at 3 months, accommodating short-term investment strategies.
Who can invest
United States
Any U.S. resident over the age of 18 with a Social Security Number (SSN) is eligible to invest in Sweater's Cashmere Fund.
Who can invest
United States
Percent accepts investments only from accredited investors in the U.S. with U.S. bank accounts, adhering to Reg D 506(c) exemption rules.
Moderate Volatility
3/5
The assets on Sweater's platform, including the investments made by the Cashmere Fund, can be subject to volatility.
Moderate Volatility
3/5
Assets on Percent generally show lower volatility than public market investments due to the nature of private credit, which often involves fixed returns from contractual agreements.
Regulation and audits
SEC Regulated
Sweater operates under SEC regulations, allowing them to accept investments from non-accredited investors.
Regulation and audits
SEC Regulated
Percent is regulated under Regulation D, 506(c) of the Securities Act, allowing only accredited investors to participate after verifying their status.
Insurance
No
Specific details about Sweater's insurance policies are not available on their website.
Insurance
Yes
Funds deposited with Percent are held at an FDIC-insured bank, ensuring protection up to $250,000, the maximum allowed by law, providing security for investors' capital in case of a bank failure.
Payouts
No Recurring Payouts
According to Sweater's website, the Cashmere Fund does not pay dividends to investors.
Payouts
No Recurring Payouts
Percent provides returns through interest payments or fixed returns from private credit deals, rather than traditional dividends.
Withdrawals
Investors in Sweater's Cashmere Fund can redeem their investment during biannual redemption windows. However, there may be restrictions or limitations on the redemption process.
Withdrawals
Upon investment maturity on Percent, funds (principal and yield) are credited to the investor's account. Investors can then transfer these funds to an external account or reinvest.
Extra Fees
No
Sweater's Cashmere Fund charges a fee of up to 2% for redeeming investments during the semi-annual redemption windows.
Extra Fees
Yes
From September 2023, Percent charges a fee of 10% on interest payments, not affecting the principal.
Taxes
Annual Statement
Venture funds, like Sweater's Cashmere Fund, generally provide tax reporting support to investors.
Taxes
Tax Form
Percent provides investors with a consolidated 1099-INT form each tax year, reporting all investment income as ordinary income for tax purposes.