How Blockchain Is Revolutionizing Venture Capital Investing

SINGAPORE, December 2017.  The emergence of blockchain technology has completely turned the table as it continues to redefine the art of investing.

ICO or Initial Coin Offering is the new name of the game as total ICO funding has surpassed early stage venture capital and finally reached $3.6 billion through the end of November as reported by Forbes magazine.

The New Investment Train of the Future

Thus, what make people increasingly venturing into the world of digital finance?

Venture Capital (VC) funds invest in startups that disrupt industries and reinvent the world we live in, generating billions of dollars in the process. As a result, it’s remarkable to see how the world of venture capital itself has remained untouched by technology for so many years. However, the biggest limitation of the VC model is that VC funds are not liquid. For that reason, investing in the most exciting stage of tech startups is reserved only for those who can afford to “forget” about their capital for 5-10 years.

“A VC partnership is a 10-year blind-pool — a long relationship in which investors have limited ability to exit, and no clarity of outcomes.”  Mahendra Ramsinghani said in his book – The business of Venture Capital

Blockchain offers the opportunity of making VC funds liquid through asset tokenization. Asset tokenizing refers to taking illiquid assets, and issuing tradable tokens that give holders rights in these assets (“asset-backed tokens”) – thereby giving them liquidity as the assets become tradable.   

The Time is Ripe for Tokenized Investments

Most successful ICOs record significantly high profit margins and are fast becoming a preferred investment vehicle for frequent investors.

“Blockchain provides us with an ability to create unified vehicles for a wide range of valuables. This vehicle allows us to address worldwide liquidity and customers, without the need of local customization.” said Oleg Seydak, CEO of Blackmoon Crypto.  

Crypto investors interested in startup investing, however, are left with no options than investing into ICOs on very early concepts. For the first time, JWC Blockchain Ventures offers qualified crypto investors the option to diversify some of their cryptocurrency holdings, into a portfolio of proven and growing tech e-commerce startups, since JWC will perform equity investments in those companies.

The First Tokenized Fund focus on decentralized eCommerce ecosystem

JWC is aiming to be the first fund to utilize blockchain technologies to disrupt the venture capital industry in SEA and be the first truly liquid and inclusive VC fund. Although VC offers significantly higher returns than almost any other asset class, it is notoriously exclusive, being open only to a relatively handful of professional investors and dedicated venture funds.

JWC is designed to bridge the two worlds of VC and blockchain technology, offering to crypto-investors a new opportunity of investing in tech companies with strong traction, as opposed to traditional ICOs.

JWC will therefore be a unique opportunity for novice and experienced investors from both the traditional finance world and the cryptocurrency sphere.