Alto Capital's SPV will invest into the Series B venture fund of systematic investment platform SignalRank. SignalRank invests in high-potential Series B rounds, selected by proprietary algorithms that analyze investor patterns and sourced from 200+ seed partners.
Offering Details
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About the Investment
SignalRank Co-Investment Fund
SignalRank is an investment platform that allocates capital to promising Series B startups, utilizing proprietary algorithms based on the power law framework commonly observed in venture capital. The platform follows a sector and geography-agnostic approach, seeking to invest in 20-25 startups identified as being in the top 5% of their category.
SignalRank aims to enhance the probability of backing companies that may achieve unicorn status, with internal data suggesting a potential success rate of up to 30%, compared to a market average of approximately 10% at the Series B stage. However, these projections are based on historical models and do not indicate future outcomes*.
With its Pro Rata as a Service offer, SignalRank serves as a capital partner to systemically constrained seed managers and investors. It is a highly active participant in the arena of Series Bs. It frequently co-invests alongside some of the most prominent names in venture capital, like Sequoia Capital, Accel, and Andreessen Horowitz, firms widely associated with some of the most impressive capital returns and impactful innovation outcomes in the venture ecosystem.
*The SignalRank Co-Investment Fund excludes investments in Chinese companies. Any references to past co-investments with other firms are for illustrative purposes only and do not imply future participation or endorsement. All performance targets and figures presented are hypothetical and should not be interpreted as guarantees of future results.
Data-First Investment Selection for Outperformance:
The data-first approach employs cutting-edge heuristics and machine learning models to systematically predict the top 5% of Series B opportunities annually. By focusing on this subset, which is estimated to return in the top decile, SignalRank constructs an intelligent indexed portfolio overloaded with potential winners. This contrasts traditional VC fund strategies that often rely on a broad spray of investments, where outsized returns concentrate on a few outlier winners.
Pro Rata As A Service
SignalRank secures access to Series B rounds through strategic partnerships with seed funds that have follow-on rights but lack capital for later-stage investments. This sourcing strategy allows the company to tap into top-tier opportunities that are typically difficult for LPs/investors to access independently.
SignalRank began investing in May 2023 and has deployed funds in 20 Series B stage companies. Co-investors in these assets include Sequoia Capital, Accel, Index Ventures, Union Square Ventures, and Andreessen Horowitz.
This dedicated vehicle will employ an identical strategy to the individual deals the company has invested in.
Target returns of the SignalRank Co-Investment Fund
SignalRank’s investment model is designed to allocate capital with high precision into promising startups raising Series B funding. Historical backtests have shown that approximately 30% of companies identified by SignalRank achieved valuations exceeding $1 billion, compared to a broader market average of less than 10%. However, these figures are based on past data and do not guarantee future results.
*The sample co-investors listed are some that SignalRank has participated in rounds alongside, before, or after, and should not be taken as a predictor of future co-investors for any given portfolio company. There is no guarantee of who will be the co-investors.
Through Alto and SignalRank’s partnership to list the SignalRank SPV on Alto Marketplace, eligible finance aficionados, tech believers, and entrepreneurship enthusiasts alike have the chance to tap into promising startups at their Series B stage for their own investment portfolios and retirement strategies.
About SignalRank
SignalRank is a Palo Alto-based, private-markets investment company that uses proprietary algorithms to identify the highest potential Series Bs by focusing on investor patterns.
It accesses these rounds by investing with seed managers via its Pro Rata as a Service product. The company has 300+ seed partners with 150+ potential Series B opportunities in the next 6-12 months.
SignalRank's investment model has undergone backtesting, demonstrating a hypothetical average multiple on invested capital (MOIC) of 5.6x over five years. The backtest data also indicated that investments in Series B companies through SignalRank’s model had a 25-30% likelihood of reaching unicorn status, compared to a market average of approximately 10%.
Please note: The results of backtesting are hypothetical and based on past data, which does not guarantee future performance
Marquee investors including executives from Y Combinator, Draper Associates, and Coatue have invested ~$10m in SignalRank.
Already, SignalRank has completed 20 investments, making it one of the most active Series B investors since May 2023.
Meet the team
Keith Teare, Chief Executive Officer
Keith Teare is CEO of SignalRank. He has over four decades innovating in digital technology in founder, investor, accelerator, CTO, and CEO roles. Keith was previously US Managing Partner for Accelerated Digital Ventures (Accelerated Ventures) and founder of Archimedes Studio, the incubator of TechCrunch. His current portfolio includes InFarm, The Miles Company, Around Co, and UI Path. He has founded multiple companies including two which went on to $1bn+ valuations: EasyNet and RealNames. Keith has an extensive technical background and substantial startup/founder experience.
Rob Hodgkinson, Investments
Rob Hodgkinson is Head of Investments at SignalRank. He is a tech investor with 15 years of experience, including prior roles at Beringea & Rothschild. He was also COO at TVPlayer, a venture backed online video platform which was acquired in 2019 by Alchimie. Prior to SignalRank Rob focused on creating Series B+ SPVs, backed by leading US family offices, in SaaS and consumer subscription software businesses, with recent investments including Pray.com, Fishbrain, 12traits, and Second Spectrum.
Matt Melkonian, Operations
Matt Melkonian is the Chief Operating Officer at SignalRank, overseeing operations, compliance, and finance. Matt has over 25 years of portfolio management, investor relations, and operational expertise most recently as the Founder and primary principal of MR 2.0 Capital LLC, a small boutique private equity investment firm. Matt is also a Principal in Garden City Asset Group, LLC (a Life and Health Insurance company). Previously Matt served as a Partner and Chief Operating Officer at Melkonian Capital Management and before that as a Vice President at Morgan Stanley Smith Barney (formerly Salomon Smith Barney).
Shawn Purcell, Data
Shawn Purcell is Head of Data Science and Analytics at SignalRank. He is responsible for the machine learning algorithms at the core of the business. Shawn has over 25 years of experience in the technology space, in both start-ups and corporate environments. He is the Founder of Liquid Data, a low-code data prep and integration SaaS company, and has held leadership roles in Twitter, Quixey, Amazon/A9, and Netflix (where, notably, he led the team that developed movie recommendations). Shawn has several data and search/recommendations related patents to his credit.
Kayvan Baroumand, Corporate Affairs
Kayvan Baroumand is President of SignalRank. He previously founded and ran Innowise Inc., a technology innovation center. Kayvan has been a leader with international business experience in the technology, venture capital, manufacturing, healthcare, professional services, and distribution sectors. As a founder or top executive of multiple top incubators and accelerators in Silicon Valley (GSV Labs, Plug and Play Tech Center, AlwaysOn), Kayvan has significant experience, deep connections, and a robust network in corporate and business development, venture capital, entrepreneurs and startups.
Venture capital has long been an exclusive space
According to research from the National Bureau of Economic Research, the total number of publicly traded companies in the United States dropped nearly in half from 1996 to 2012, marking an increase in private market capital opportunities1.
Venture capital is a power law asset class, as only a small number of investors and the companies they invest in account for a majority of returns. SignalRank aims to broaden access for more investors to participate in this constrained space alongside the most widely known players in the ecosystem.
Access an index of high-signal private companies
Alto aims to offer individuals unique investment opportunities designed for long-term retirement planning. By focusing on alternative assets with high growth potential, we align these opportunities with a strategic, forward-thinking approach tailored to retirement goals — a strategy we refer to as "duration matching."
For a minimum investment of $25,000 into the SignalRank Venture Capital AC SPV, accredited investors can gain exposure to promising early-stage entrepreneurship rising through the venture ecosystem and align their portfolio to longer-term investments.
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Offering Documents
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*Please be aware that Alto Capital collects the 4.5% SPV fees upfront to be held in reserve. Alto Capital reserves the right to waive this fee at its sole discretion. This fee is charged for the management and operation of the SPV and is separate from the fees associated with the underlying investment opportunity. Understanding that this management fee is an additional cost that will affect the overall return on your investment is crucial. Furthermore, the underlying fund also charges separate fees. These fees differ from the SPV's annual management fee and may impact your investment returns. To ensure you have a comprehensive understanding of all fees and charges that apply to your investment, we strongly encourage you to review the offering documents thoroughly. These documents provide detailed information on all fees, charges, and the terms of your investment.
Neither Alto Securities, LLC (“Alto Securities”) nor any of its affiliates provide any investment advice or make any investment recommendations to any persons, ever, and no communication herein or otherwise shall be construed as investment advice or a recommendation about any specific security offering, investment, asset, or fund.
Private securities are intended for highly sophisticated investors and involve substantial risks. These risks include but are not limited to a lack of operating history, leverage, liquidity of the portfolio, segregated portfolio fund risk, diversification and concentration risk, and long-term investment risk. Past performance does not indicate future results; all investments carry inherent risks. Diversification does not eliminate risk, and returns on investments are not guaranteed. It is advisable to consult with financial professionals and conduct due diligence before making a decision. Furthermore, there is a risk that investors may receive little or no return on their investment or may lose part or all of their investment. However, there can be no assurance that the managers will successfully achieve the investment objective offered or deliver positive returns.
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