Ok gang, your input will be greatly appreciated here. I have convinced 4 of my friends and relatives to join me in founding an investment club ( a la private equity or VC) the idea is very simple: each one of us will contribute a certain amount of cash ( we're thinking of 25000 USD each) with an option to raise more funds when we come across viable investment opportunities.
I'm taking time off work for up to 2 years to fully focus on this venture. I will be the only paid employee and any future profit will be equally divided among the 5 of us. I'm not just getting paid out of blue, I have experience in portfolio management, assets allocation, and I can run all kind of investment simulations (actually that's what I do) our main focus will be to invest in start ups and or creating the start ups ourselves around any viable opportunity and hire the right people to run. so if things go well we may end up with money invested in 3 to 4 ventures.
My questions are: what are the main points I need to consider in this kind of venture?
thanks for your time.