Network Effects Capital (“NEC”) provides accredited and super-accredited investors (“Members”) access to top quality, multi-sector and multi-stage private deal flow on a deal-by-deal, opt-in/opt-out basis.
NEC represents a unique model for high-net-worth individuals to build a portfolio of screened, researched, and vetted private investments to add diversification and increase returns vs. a pure public market investment approach.
NEC’s model of “opt-in” investments enables investors to choose which deals to participate in, and which deals to pass on – each investor is the final decision-maker for their investment. NEC sources, evaluates, and makes recommendations to Members and provides reporting and monitoring. NEC’s investment thesis is that a national network of well-connected Members sharing deal flow and making disciplined investment choices through an opt-in mechanism will result in a unique portfolio strategy and superior investment returns.
Additionally, NEC works closely with regional accounting and law firms both as deal sources and as Member investors, which provides differentiated, local, high-quality deal flow for deals that are attractive to investors but below the target ranges of traditional PE and VC closed-end funds.
NEC was founded in August 2013 by John Funk, Managing Partner, and a core group of early investors. The company is managed by John Funk, a highly successful serial entrepreneur and experienced private investor. John founded four companies over the past 17 years, during which time shareholders have realized over $500MM in exit value (John’s personal IRR exceeds 170% over 18 years and investors in his deals averaged between 1x and 20x returns depending on the round in which they invested).