Network Effects Capital (“NEC”) provides 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 Members to choose which deals to participate in, and which deals to pass on – each Member 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 Members but below the target deal sizes 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. John was a highly successful (but now retired) serial entrepreneur. John founded seven companies and shareholders realized over $500MM in exit value (~$50MM invested). John’s personal IRR exceeds 170% over 30 years and investors in his deals averaged between 1x and 20x returns depending on the round in which they invested.

NEC’s track record over the past 10 years reflects 22 exits with an average net IRR to investors of over 20% and an average equity multiple of 1.8. The fund currently has 6 active investments (none more than 4 years old) and we are actively looking for new deals.