FABA token — Invest with the first open venture capital fund

4 min readFeb 22, 2019

FABA is the first venture capital token with positive impact on our environment. FABA supports the most promising and highly vetted companies with positive impact on areas of Blockchain, Foodtech, Biotech, Education, AI.
FABA strive to create strong and fast growing projects (stalks), on which we climb to the sky together. Every company needs to be thoroughly taken care of in its initial phase.

The features of the company FABA

FABA) is the first venture capital token with positive impact on our lives. Decentralized voting system enables shared decision making when selecting projects.
We connect traditional venture capital market economy with the crypto world bringing new opportunities to both.
FABA LTD invests in those projects that passed through professional due diligence process, where it becomes an equity shareholder.
Due to our professional approach, financial investment and the time commitment of the mentors and (FABA) token holders, the valuation of companies raises. Our investments are then exited at their peak to return multiples of initial investment to our token holders.
Faba was founded by a group of experienced people, whose interest is to support projects and teams of people with ambition to influence the world.
The Common Vision has helped to define the target segments and future megatrends which are changing the environment today and are contributing to further development:
Foodtech, Biotech, AI, Robotics and other sector agnostic opportunities
The investment horizon is set at 8 years. (FABA) token holders will be rewarded throughout the course of investment based on the dividend strategy of each company and actual exit time.
The main goal of Faba is to become the largest venture capital company that supports game-changing projects with the positive impact on our environment.

FABA token Economics Mechanism

In the first round of investment, FABA LTD together with (FABA) token holders, aim to support a maximum of 110 projects with the outlook of 11–17 successful projects that will reach target valuation of 10–30 multiples of the initial investment. It is common that up to 60% of average VC portfolio companies will fail with ROI lower than 1 and the remaining companies will generate ROI between 1 to 5. FABA will eliminate the fail rate by execution of comprehensive due diligence process and implementation of tranching mechanism binded to the agreed key milestones of the invested project. It is expected to execute all the Seed investments in the first 1–2 years and private equity investments within the 1st year for ensuring enough time to achieve significant increase in value before exiting the shares which will be happening continually. (FABA) token has voting rights. Each holder of min. 2000 (FABA) tokens has a voting right and can have own input on short listed projects.
We are preparing an interface where it is possible to submit new projects proposals and votes. Both FABA LTD and (FABA) tokens holders will be able to submit projects for voting. Once the project gets majority of positive votes out of total FABA voters, it is considered as pre-approved for funding. FABA LTD is allowed to use max. 20% of its voting rights. This mechanism allows us to get feedback from the market and the inspiration when decision making on new investments. The time frame is always one month, and each new project proposal is charged a symbolic processing fee. Faba application will also display projects already supported with a basic reporting scheme and a dedicated mentor.
Faba has decided to transform traditional venture capital into a modern blockchain system to make an investment through (FABA) token more accessible for non-accredited investors.
Main goal of the ICO process is to involve crypto community and bring new ideas from the market which can be influenced by the voting rights. (FABA) token substitutes for business shares with a profit right which is paid in ETH. All returns on investment to token holders are paid at the time of exit. Liquidity of (FABA) token will be determined by listing on the stock exchange, where it is faster for the investors to sell compared to the nonpublic traded shares. Dividends are paid continuously throughout the course of the investment. It is not necessary to wait for the classical general board meeting, where dividends are paid once a year. (FABA) token holders vote to inspire start-ups with their valuable market feedback and together with Faba team take decisions on new investments. Entrepreneurs who believe in their projects are highly encouraged to apply with Faba.