🚗Sidecar

Side car - A strategy in which one investor allows a second investor to control how to invest their capital. A sidecar investment occurs when one of the parties lacks the ability/confidence to invest for themselves.

Example use case

• VC fund has reached their maximum number of investors

• The VC wants to onboard new investors to increase their investment liquidity

• The VC sets up a "Sidecar" fund for angle investors to pool thier money together

• The Sidecar delegates investment to the VC

• Subsequently, the VC has increased their liquidity & number of investors without increasing the size of the fund

Note - 50 in sidecar