2024 AV K1 Situation Room

Main Take-Aways

Many of our nearly 10,000 investors have never made a venture investment prior to joining Alumni Ventures. This is reflective of the overall market, where <3% of accredited investors in the U.S. have ever made any startup or venture investment before. For that reason, we know it is our job to help educate our investors and serve as an “asset class ambassador.”

• A key piece to understand is that the status quo outside Alumni Ventures for nearly all angel investors is to not receive K1 documents until the summer or even into the fall, well after the traditional April annual filing deadline.
• Though it’s not easy, our scale, systems, technology, and our great staff enable us to deliver K1s to our investors on or before 3/31 each year. This is a feat that candidly is unheard of in the industry, especially when you consider the scale of our business and the fact that we need to collect information from every single one of our 1,200+ portfolio companies in order to achieve this feat.

Historical Track Record of K1 Delivery

Over the last decade, we have made modest improvements in our delivery timelines for our investors. However, over the last twelve months we’ve invested heavily in this process and expect that to be seen and felt by all of our loyal investors during this upcoming tax season in early 2024.

Some examples of the improvements we have made in the last twelve months:

• Improved K1 workbook automation and integration to our financing systems, leading to drastically reduced manual prep time required 
• Expanded support network of 3rd party providers to increase throughput capacity 

Setting Expectations for Spring 2024

• We expect that 100% of investor K1s will be available in their portal on or before 3/31/2024.
• We expect that K1s will start to become available for some investments starting around mid February.
• Beginning in mid February, we will regularly update the “weekly status” section. 
• When 100% of your K1s are ready for you, as an individual, we will email you with a notification that all are now ready. We expect these emails to start to go out in mid March and continue through the end of March.

It is possible that unforeseen circumstances arise and that some K1s will not be available within the date range provided. As soon as we have information that leads us to this conclusion, we will notify impacted investors and reset expectations, if necessary.

Your Individual K1 Availability Dashboard

• Within your Investor Portal and the “Documents & Statements” tab, you will find a section called the K1 Availability Dashboard. This will list all of the K1s you can expect to receive for TY2023. As they become available, the status will move from “In Progress” to “Available,” and you will see a link to your document for download.
• We expect that K1s will start to become available in mid-February. However, investors may not have all of their K1s available until the end of March.

Weekly Updates (Starting February 15, 2024)

We will begin providing weekly updates in mid-February 2024, and continue through the end of March.

All AV Fund investments described above are for illustration purposes only. These investments are not intended to suggest any level of investment returns; not necessarily indicative of investments invested by any one fund or investor. Many returns in investments result in the loss of capital invested. These investments are not available to future fund investors except potentially in certain follow-on investment options. To see the performance of each exited investment for all Alumni Ventures funds over the last twelve months and our historical performance since 2014, click here.