WebStreet Revolutionizes Online Business Investments With Launch of Round 6

Returns from online businesses can be massive, but buying online businesses requires active management that potential investors may not have the skill or time to manage.

Online investment platform WebStreet's professional portfolio managers hand-pick companies that enable investors to reap passive returns on their investments. Investors get diversified portfolios with fractional ownership of several online businesses, which reduces the risk of failure.  

WebStreet recently launched Round 6, a funding round that streamlines the company's previous invest-in-all option by shifting investment into a single diversified fund.

The new structure means investments are spread across all available assets in a round managed by different portfolio managers to maximize exposure and returns. The shift brings more agility in capital deployment and better risk mitigation.

"This is just the starting point for how our new fund structure will benefit investors," WebStreet states on its website.

WebStreet, formerly Empire Flippers Capital, previously allowed accredited investors to invest in individual funds, each managed by a separate portfolio manager. This offering gave investors choices, but it also came with risks. While more than 75% of investors diversified by investing in multiple funds, those who didn't were vulnerable to a single fund's ups and downs.

With Round 6, money moves across portfolio managers, ensuring a greater range of investment opportunities and a higher likelihood of deploying more of the available acquisition capital. Capital isn't tied to one portfolio manager and their acquisition goals but instead flows across portfolio managers, ensuring a greater range of investment opportunities.

The flexibility means that if one portfolio manager can't secure an asset that meets their criteria, the capital could be used by another manager to acquire a business. It also enables portfolio managers to allocate extra capital for an asset that otherwise may have been outside of their price range.

"This new structure aligns us closer to a private equity fund rather than a ‘marketplace' for funding individual operators," WebStreet states on its website. "For larger investors familiar with how investing in private equity works, this creates an investing environment where investors are poised to make decisions based on Webstreet's overall track record rather than individual managers."

The new funding mechanism gives WebStreet's investors a single yet diversified place to invest and receive returns passively. The hands-off approach allows investors to give responsibility to a team of professionals to acquire the best online business assets.