A whole new way to win at start-up investing
What happens when you throw together 30 global tech start-ups into the hotbed of Silicon Valley during the Wild West of the crypto craze? You get 22X Fund, the first-ever token offering backed by real equity among a group of pioneering start-ups that are alumni of the 500 Startups Global Seed Accelerator programme.
The 22X Fund has announced the first-ever token launch of its kind, with token pre-sales beginning on 26 January 2018 at 07:00 EST. By purchasing tokens issued by 22X, investors will now have an opportunity for early exposure to up to 30 high potential early-stage companies.
22X was derived from ‘Batch 22’ of the 500 Startups Global Seed Accelerator programme, all of which participated in the 500 Start-ups summer 2017 accelerator programme. Participating companies in the 22X Fund have already raised over $22 million in seed capital from top VCs, institutions and angel investors.
“ICOs are all the rage right now, but few have a concrete offering underpinning the value of their token,” said Chris Rawlings, founder of Judolaunch, a participating 22X company. “Since ICOs represent a new form of early-stage funding, 22X is leading the way by offering a token that gives investors real value right from the start.”
“Democratising access to start-up capital is the most significant innovation opportunity for the next 10 years. Blockchain now allows this to become a reality, by enabling us to better manage who gets funded and who gets to invest. We’re proud to play a role in such an exciting endeavour,” said Ashwini Anburajan, founder of OpenUp, a participating 22X company.
Investors that satisfy the applicable suitability standards and are interested in gaining exposure to a select group of promising start-ups, can subscribe to 22X with several crypto or fiat currencies and will receive the digital ERC20-compliant 22X Token in return.
In addition to gaining exposure to emerging companies, investors in 22X can expect lower fees compared to traditional VC or ICO investments. Another distinguishing factor of 22X is that unlike many other venture capital investments, it does not subject its investors to carried interest.
22X is aiming to raise $35 million, almost all of which will be deployed immediately and invested on a pro-rata basis in the equity of participating companies, with a view towards fuelling their expansion.
“22X can be thought of as a trailblazer in tokenisation. We firmly believe we are accelerating towards a future where paper-based securities are completely extinct. 22X is at the forefront of innovation in what might be considered the first issuance of tokens in which returns are based on the success of a select group of promising start-ups. We are proud to be powering the 22X offering with the Securitize platform,” said Carlos Domingo, Securitize co-founder and president of Securitize.io.
“22X represents an advancement in new investment vehicles, a token backed by equity in up to 30 companies. This offering represents a significant development in the crypto space, and I’m thrilled to be on board,” said Tim Reynders, co-founder of Securitize Capital and investment manager to 22X.
About 22X Fund companies
The idea for 22X was originally conceived when a group of founders participating in Batch 22 of 500 Startups in San Francisco started discussing some of the challenges facing many companies in the VC industry. After much collaboration, this group discovered Securitize.io, a new platform designed to facilitate the purchase and transfer of tokens among qualified investors. Hence, the 22X Fund was born, Securitize Capital LLC (a wholly owned subsidiary of Securitize.io) was engaged to act as its investment manager and the rest is history in the making. For more information, visit 22xfund.com.