We offer our clients diversified exposure to ventures, tokens, and projects related to blockchain tech, digital currency, and crypto assets. The Fund's investors benefit from our access and diligence with our principal-based approach into technology, economics, game theory, and code.
Our unique understanding of the space and developed connections to have first priority access to particular deals due to connected platforms serving as the foundation for many projects. We understand the cyclicality of these markets giving us the ability to actively trade and take advantage of the inefficiencies faster than individuals passively investing.
The relationships we have developed within the space have given us proprietary deal flow access, and with the era of regular people getting into amazing ICOs coming to end this creates another huge opportunity for our firm to capitalize on as well. Not to mention the KYC issues projects eliminate by taking capital from us rather than an individual.
WHY OUR FUND?
Investing in the Future
High quality projects’ biggest challenge is attracting developers and real users, not capital, so expect the amount of crowd-sales to drastically go down. Our firm is able to gain access for one simple reason and that is the value add we are able to bring forth. Whether it be an understanding of token economics, the ability to go out and create strategic partnerships, or bring in experienced developers to help scale, these projects do not lack capital. Our direct access to platform service providers creates a distinct edge from other firms allowing us access to some of the most compelling projects in the space.
Our venture capital style of investments, tokenization, actually plays to our advantage. These investments are very high risk, early stage technology projects that potentially have a lot of upside. The venture capital portfolio is predicated on the fact that you can only lose 1x of your money and can make 100x your money, hence why venture capital is a profitable business in the first place. LCI utilizes the blockchain to reinvent venture capital, making it significantly more attractive for investors, by removing its biggest limitation – the 7-10 years effective lock-up period (illiquidity). By making all these assets liquid, it totally changes the game since you can go in and change your mind at any point in time. If you look at traditional venture capital portfolio, you have between 20 to 40 investments and you try to catch a winner. If you only have five bets, there’s a low probability one of those five ends up being a winner. By eliminating the conventional problem of a 5 to 10 year lock out period of illiquidity, this creates a massive opportunity for VC firms. Not only can they choose entry price, but also when they want to exit along with when they want to invest more. This liquidity enables risk mitigation along with the ability to generate even more upside in the already very lucrative venture capital economics. However, while recognizing the revolution the blockchain brings to tech investments, we believe the traditional VC industry has a lot to bring to the table too, and we therefore strive to combine the best of both worlds.
By having an immediate exit strategy, this becomes increasingly valuable in the ever so evolving world of technology. Something could very easily change our minds like a competitor in the space or the returns are just not going to be what was expected. The increased liquidity allows for the ability to recycle capital within our portfolio, consequently allowing for an exit of only a 20 to 40 percent loss, rather than 100 percent loss in the event of a project ultimately failing. In the event of us becoming more bullish on a project, we don't have to go and convince the founder or CEO to take another round of capital either. These secondary markets allow for us to increase investment on a project we feel extremely confident.