In order to make tech investments liquid and accessible, the Pulsar VC (Venture Capital) has announced a crowdsale of Pulsar “tokens”. An international venture fund and accelerator, which invests capital in premature startups, Pulsar Venture Capital is looking for eligible purchasers who seek investments in the precocious startups.
The participants will be pre-screened based on their country legislation and regulations. The liquid tokens will be obtainable to trade on the market. The purchasers will then be able to take part in any positive effects from the possession of the tokens. The returns from the profit distributions of the invested companies will, in turn, be utilized to reclaim the Pulsar tokens from the market.
Their strategy is to choose the pre-eminent companies that will bear the fruit post-funding with the aid of industry experts, analysts, advisors, and tools. They will weed out the loss-making startups that are lacking a feasible business plan. This strategy will ensure high returns with some risk to the investors. It will also enable the expansion of the firm’s investments into various fields.
The company generally invests in startups dealing with blockchain/cryptocurrency, advanced materials, IT, and hardware. So far, their track record has been incredible with an average 157% yearly return to their investors and 920% return on investment anticipated over the lifetime of the capital.
They follow a strict, regimented culling process which sees over 500 companies from Eastern Europe vying for a spot-on Pulsar’s global Accelerator Program every year. However, only 10-15 with an MVP (Minimum Viable Product), a viable business plan, and a sturdy team ever make it in.
This is, then, followed by a $100,000 investment and a 6-month program in Russia, Silicon Valley, and Ireland with hundreds of hours of mentoring given by more than 40 mentors. The coaches are a mix of industry veterans, serial entrepreneurs, and investors.
The startups, then, enhance their business plan and create a market strategy apart from consistently improving and enhancing the product. This is also when they start to woo new clients and begin pitching their product to investors in various cities across the globe.
Finally, an up to $2,000,000 investment into the top performers from the program to either maintain or raise their ownership stake in the company is made. They also help boost the startup’s growth by helping raise funds from other investors by acting as the lead investor.
The additional funds are stocked for follow-up rounds of funding. Later, the product is soft-launched in big markets, such as the US, UK, other parts of Europe and Asia to leverage the local network of partners.
The accelerator and Venture Capital firm has capped the ICO at $30 million beginning from November 13. The tokens will be issued on the Ethereum network. The purchasers can invest for up to a month since the beginning of the ICO with a minimum contribution of 0.1 ETH (Ethereum unit). Bitcoins are also accepted.
The preliminary token price is equivalent to $1 (USD). The company is also offering benefits, which will progressively decrease as the time passes from 15% in the first week to 3% in the fourth week. The novel idea may bring about an interesting change of perspectives regarding investments in startups.