A new Venture Capital investment model

Kabzeon
Coinoutline
Published in
4 min readMar 5, 2018

What exactly is venture capital ?

Venture capital funds emerged at the beginning of the 1990s as a way of investing in innovative companies, with a technological base and great development potential. Venture Capital has developed gradually to occupy an important space in the financial system, thanks mainly to the attractive returns achieved for institutional or private investors. Venture Capital Funds are made up of contributions made by private investors, which may be individuals, companies, funds from pensions or public institutions. These funds are managed by professionals, whose objective is to invest in projects and initiatives that involve a degree of risk, but also a very succulent profitability.

How does a venture capital company work ?

Venture Capital Companies are raising investment funds that are generally dedicated for investment in different startups, innovative and newly created companies with a high potential for growth and development, in exchange for a direct stake of the company which is usually between 25% -30 %. The essential condition of access to venture capital is the growth potential of a business, which must be associated with a proven competent management, and demonstrate the ability to turn the business plan into a reality. In addition to capital, venture capital can provide support and advice to management, such as in the financial area, business strategy, contacts through its national and international network, market information, ability to critically analyze the performance of the company.

Blockchain and Venture Capital future

From the point of view of a venture capital investor, accustomed to supporting new technologies, crypto-revolution was always something technological. Blockchain technology offered the possibility of building decentralized networks in most areas of the digital economy, bypassing traditional businesses. The potential continues to be undervalued. The banks talk about the blockchain technology as something that must be mastered and turned into a tool for administrative functions, just as the big media companies once saw the Internet as only a useful way to reduce their distribution costs .

With the internet finally invading the clubby, offline world of venture capital, a new company wants to finally open this world to regular small investors like us. It was virtually impossible for small individual investors to have access to enormous moneymaking opportunities and powerful investments in the venture capital world. For the first time, everyday people, non-industry professionals, will have the chance to back an investment that usually they only get to hear about in the media after the event, all because of a new company called Equi Capital.

Equi Capital

The Equi project is lead by a team of very experienced and dynamic innovators spearheaded by the investing veteran Doug Barrowman with 30 years of experience in the field. Mister Barrowman is currently the Chairman for Aston Ventures, a very appreciated London based venture capital fund, well seen and very well connected within the venture capital industry. Alongside him as cofounder is Baroness Michelle Mone, who founded and managed Ultimo Brands, perhaps best known for producing comfortable bras.

Built on Ethereum blockchain technology, the EQUI platform plans to disrupt the traditional venture investment model by empowering regular individuals to join the next generation of venture capital investors. The goal was to respond to a need for funding in the early stages of startup and create a vehicle for connecting these investing opportunities to a wide group of investors who are interested in entering the venture capital investing ecosystem.

By owning EQUItokens,investors will be able to buy stakes in vetted emerging, entrepreneurial companies having the opportunity to enjoy great investment returns. The EQUI team will back innovators and support them by providing extensive business knowledge, guidance and insight to enable their venture to flourish, providing an added value to the purely financial aid, in the form of managerial support, through advising on specific problems, giving greater credibility, and facilitating openness to new business approaches and relationships with third parties, among others.

Buying the EQUItokens will allow you multiple strategies, you can either invest in all the startups Equi Capital will curate, you can also hold the tokens and wait for some investments options you really like along the way.

ICO

The Equi ICO consists of two phases: a one-week pre-sale commencing 1 March 2018 with a minimum investment of £100,000 followed immediately by an ICO which lasts for 28 days. The main details are:

  • Token: EQUI
  • Pre-ICO sale: 1 March 2018 to 8 March 2018
  • Pre-ICO minimum investment: US$100,000
  • ICO opens: 8 March 2018
  • ICO ends: 31 March 2018
  • Minimum ICO purchase: $100
  • Total EQUI supply: 250 million
  • Price: 1 EQUI = US$ 0.5
  • Accepted payments: Bitcoins (BTC), Ethereum (ETH), Litecoins (LTC), Ripple (XRP)

65% of the total coins are available for sale during the pre-ICO and ICO. Of the remainder: 12% will be retained by the two founders; 15% to the main team; and 6% to advisors.In the event there remain unsold tokens following the public sale, 50% will be distributed ICO holders pro-rata and 50% retained by EQUI for future investment projects.

You can check out the Equi ICO here, follow them on Telegram here and stay up to date via their Bitcointalk announcement thread here.

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