Blockchain has been the most talked about technology in 2017. The technology has changed the way several industries operate. It has enabled transparency, speed and automation ensuring efficient and effective operations. The Venture capital industry is not one to be left behind. It has embraced the distributed ledger system of blockchain, which is fully tamper proof. Funds backed by blockchain technology have the ability to tap into the huge wealth in crypto industry and use it on high performing startups worldwide.
With cryptocurrency fund, investors can receive more benefits than from the traditional venture capital model. The immediate liquidity and complete transparency are two advantages that you cannot find in the traditional form. The decentralization provides several opportunities for cost savings, security and disruption.
Investors can exchange the crypto tokens with portfolio startup tokens. They can take advantage of the transparency and trade freely having much more cash flow when compared to the conventional VC form.
Hackers/Founders Fund is one such cryptocurrency venture fund made by H/F (Hackers/Founders). It uses blockchain to give faster liquidity for investors. The money raised by the fund via its token sale is invested in all popular technology companies worldwide.
Investors will be able to buy trade and sell Hack, the liquid H/F fund via the exchanges present online anytime they want. Investors of any level including general public and venture capital firms can make use of the fund.
The fund which is available in Ethereum cryptocurrency allows investors to invest in some of the best performing startups globally without facing the difficulty of accessing them. With all exits from portfolios being funneled back into the fund, investors will see an increase in value of their investment in a very short span.
A valuable proposition
H/F invests in companies with proven scalability to ensure token holders benefit the most from their cryptocurrency investment. With a real focus on the blockchain technology rather than just concentrating on the monetary value enables the company to apply the blockchain technology in various aspects. Core expertise areas such as cloud storage, financial services, cyber security, SaaS and more can benefit immensely from the technology.
Some of the benefits offered by the H/F include
- Free trading of token through online exchanges
- Companies where the fund is invested are chosen after several review rounds done by experts and accepted to the portfolio.
- All returns of portfolio exits will be reinvested to already existing portfolios or recently added portfolios.
- Nearly 20% of liquid fund raised is used as buyback for the existing funds belonging to the best companies in the portfolio.
- The company will also be contributing an amount of $1 million in stock form from its present H/F 1-4
The company invests in a diversified range of companies including those involved in Artificial Intelligence, blockchain technology, B2B, IoT, SaaS. All companies invested in are vetted by qualified LPs and angel investors and profit producing companies with existing product. For more information, read this white paper. With an immense potential to revolutionize various sectors including insurance, finance, banking and other fields that need immutable records and transparency, blockchain is indeed a force to reckon with in the venture capital investments.