Utility Pad: Community as VC
We are starting this launchpad based on the idea that community members could be angel investors and VCs. Get used to investing on a medium to long-term basis. We will give community members access to both the seed and private sale stages of every project we incubate and invest in.
In Web 2.0 a venture capitalist (VC) is a private equity investor that provides capital to companies with high growth potential in exchange for an equity stake. This could be funding startup ventures or supporting small companies that wish to expand but do not have access to equity markets.
In crypto, VCs provide capital to projects with high growth potential in
exchange for tokens (Some projects issue both equity and tokens). Though they make outsized returns when their investments are successful they experience a high rate of failure. Of course the successful ones more than make up for the losses otherwise they would not be in business.
As avid crypto enthusiasts and investors ourselves we know the pain of wanting to invest in projects only to be denied access by founders and being told seed and private sales stages are reserved for institutions. We hope to help Utility Pad’s community overcome this challenge by banding together and becoming a formidable force in crypto fundraising and early-stage investment.
The Venture Capital arm of Utility Pad will seek to invest in projects that share our investment philosophy. Community members who alert us to such projects in the seed sale or private sale stage will be rewarded with a 5% finders fee of the amount invested. Up to 40% of tokens received from investments will be shared with Community members who staked for a minimum of 1 year at the time the investment was made. The remainder will be plowed back into the investment pool for future investments. Tier one and tier 2 community members will also get to invest in seed and private sales we participate in. As we grow, more and more of the investment decisions will be collectively decided by stakers in our launchpad. We aim to be the first launchpad encouraging members to see themselves as VCs and invest as VCs do.
If you agree with a lot of the ideas shared here, why don’t you join us on Twitter and Telegram. Looking forward to engaging you.
From the team at Utility Pad
