Introducing BR11, the first Latin American STO

BR11 is one of a kind initiative. It allows access to early-stage venture capital in Brazil for international investors of any size.

4 min readAug 25, 2018

In 2017 the cryptocurrency & blockchain industry witnessed the rise of the ICO (Initial Coin Offering) phenomenon, which is an ingenious method of crowdfunding for the masses using cryptocurrencies and blockchain technology. However, the unregulated nature of ICOs translated into extremely high-risk investments due to the lack of security and clarity, doubtful intentions and even scams. If ICOs in spite of a lack of regulation and lousy reputation still fueled startups with a massive $5.6 billion in 2017, what’s next in 2018 and beyond? Many, like us, strongly believe that STOs will steal the show and be a much better investment opportunity to ICO investors.

What is an STO (Security Token Offering)?

STOs can be considered, in some aspects, an upgraded version of ICOs, since security tokens are actual financial securities. That’s because security tokens are backed by something tangible like the assets, profits, or revenue of a company.

In the latter half of 2018 and 2019, we are therefore going to see a considerable rise in STOs, and they may eventually out-duel ICOs. The reason is there’s more reliability for potential investors and thereby with less chance of fraud.

How Is tokenization Putting Real-World Assets on Blockchains?

Tokenization is the process of converting rights to an asset into a digital token on a blockchain. There is significant interest by financial intermediaries and technologists around the world in figuring out how to move real-world holdings onto blockchains, to gain the advantages of cryptocurrencies while keeping the characteristics of the asset.

What sets BR11 apart from other projects?

BR11 is innovating the innovation. The capital raised will be invested in 11 out of 400 handpicked tech startups that already have a proven business model, significant revenue & market share, and high growth expectations. But are still in the early-stages with low valuations (compared to other hyped crypto projects and established companies).
These startups were already invested by Latin American tech industry leaders ACE Startups and/or Bossa Nova Investments, which is co-investing in the same round in parallel with BR11 Token in most of the startups. All the money that goes to the startups is cash in the company.
There’s no cash out for current investors or founders.
BR11 Tokens will be tradeable in a Security Tokens Exchange since the day that it is distributed to token holders in the end of Main Sale (October 31st). The Exchange will be announced in the upcoming days (Join our Telegram and keep in touch).

The benefits for the BR11 token holder.

BR11 token holders could be compared, in some ways, to traditional shareholders (or LPs in a VC fund). The difference is the ROI to token holders will happen once there is an exit (i.e. shares sold to other investors, an acquisition or IPO) of one or more companies from the BR11 portfolio. The profit proceeds will be then distributed via a token repurchase program. The token holder may also sell them in the secondary market.
Investment in a diversified handpicked portfolio of 11 startups.
BR11 Token price will most probably not be based on the state of the cryptocurrency market but instead on the portfolio performance, therefore allowing crypto investors to diversify their risk exposures.
BR11 will offer an asset-based token with lower risk if compared to conventional token sales that are not linked to any underlying assets.
BR11 will offer a tokenized venture capital fund without a lockdown period. Unlike traditional VC funds that demand investors to be locked for years, BR11 token-holders will be able to trade their tokens in the secondary market from the first days after token issuance.
It will open an investment opportunity to a much broader audience that otherwise would not be able to invest in a traditional venture capital fund.

Diversification is vital for a healthy investment portfolio. Everyone at one time or another has heard the saying “don’t put all your eggs in one basket.” That might sound cliché, but it is the most mundane yet appropriate way to describe what BR11 will do. The BR11 contributor will put their investment in one token, and we will divide them into a high-performance portfolio of 11 technology startups, and manage it to achieve potentially significant profits for our token holders.

Please visit our website for more information regarding our initiative and to participate in our STO. Welcome to the future of blockchain based investment and venture capital!

Join our Telegram channel now. We look forward to hearing from you!

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